MENU

The Resolute Mining Limited (ASX:RSG) share price falls on weak FY18 results

Shares in Resolute Mining Limited (ASX: RSG) fell 1% to $1.33 on Thursday, after the company reported the latest figures on its gold production.

Resolute produced 284,000 ounces of gold in FY18, in line with its 280,000 ounces forecast. This result is not particularly impressive, considering the company had slashed its production guidance in April after reporting a weak quarter.

Throughout the year, Resolute operated at an all-in sustaining cost (AISC) of $1,355 per ounce, higher than most industry peers, including Regis Resources Limited (ASX: RRL) and Evolution Mining Ltd (ASX: EVN).

Despite selling at a relatively high average price of $1,703 per ounce, the company couldn’t generate a positive cash flow and saw its cash balance drop to $113 million, down 19% in the last three months of FY18.

However, the future seems brighter for the gold miner. A new underground mine will open at Resolute’s Syama project in Mali, ensuring an output of 300,000 ounces and lower production costs in FY19.

Resolute is also expanding its Ravenswood mine in Queensland, and should soon open a new gold project in Ghana. If everything proceeds according to plans, the company should be able to ramp up production, reaching the ambitious target of 500,000 ounces per annum by FY22.

Top 3 ASX Blue Chips To Buy In 2018

For many, blue chip stocks mean stability, profitability and regular dividends, often fully franked..

But knowing which blue chips to buy, and when, can be fraught with danger.

The Motley Fool’s in-house analyst team has poured over thousands of hours worth of proprietary research to bring you the names of "The Motley Fool’s Top 3 Blue Chip Stocks for 2018."

Each one pays a fully franked dividend. Each one has not only grown its profits, but has also grown its dividend. One increased it by a whopping 33%, while another trades on a grossed up (fully franked) dividend yield of almost 7%.

The names of these Top 3 ASX Blue Chips are included in this specially prepared free report. But you will have to hurry. Depending on demand – and how quickly the share prices of these companies moves – we may be forced to remove this report.

Click here to claim your free report.

Motley Fool contributor Tommaso Autorino has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The 5 mining stocks we’re recommending in 2019…

For decades, Australian mining companies have minted money for individual investors like you and me. But if you believe the pundits and talking heads on TV, those days are long gone. Finito! Behind us forever…

We say nothing could be further from the truth. To earn the really massive returns, you’ve got to fish where others aren’t fishing—and the mining sector could be primed for a resurgence. That’s why top Motley Fool analysts just revealed their exciting new research on 5 ASX miners they believe could help you profit in 2019 and beyond…

Including:

The best way we see to play the global zinc shortage… Our #1 favourite large-cap miner (hint: it’s not BHP)… one early-stage gold miner we think could hit the motherlode… Plus two more surprising companies you probably haven’t heard of yet!

For free access to our brand-new research, simply click here or the link below. But be warned, this research is available free for a limited time only, and we reserve the right to withdraw it at any time.

Click here for your FREE report!