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

Resolute Mining Limited (ASX:RSG) underperformed in 2018, but the company has big plans for the future.

| More on:
a woman

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

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.

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.

More on Resources Shares

a sad looking engineer or miner wearing a high visibility jacket and a hard hat stands alone with his head bowed and hand to his forehead as he speaks on a mobile telephone out front of what appears to be an on site work shed.
Resources Shares

Down 14% in 2024, why is the BHP share price sliding again today?

ASX 200 investors are bidding down the BHP share price on Wednesday.

Read more »

A mining employee in a white hard hat cheers with fists pumped as the Hot Chili share price rises higher today
Resources Shares

These ASX 200 mining stocks could rise 40% to 50%

Analysts think these miners are dirt cheap at current levels.

Read more »

Image from either construction, mining or the oil industry of a friendly worker.
Resources Shares

Fortescue share price leaps 5% as electric machinery makes a milestone

Fortescue is charging ahead with its electric mining ambitions.

Read more »

rising mining asx share price represented by happy woman miner in hard hat
Resources Shares

Why the BHP share price crushed the benchmark this week

BHP shareholders enjoyed a rewarding week.

Read more »

A man wearing a hard hat and high visibility vest looks out over a vast plain where heavy mining equipment can be seen in the background.
Dividend Investing

Here is the profit forecast to 2026 for BHP shares

Let’s unearth how much profit this miner could make.

Read more »

Female miner standing next to a haul truck in a large mining operation.
Resources Shares

Is the worst of the selling now over for ASX iron ore shares?

ASX iron ore giants like BHP, Rio Tinto and Fortescue rebounded this week after falling hard in 2024.

Read more »

Three satisfied miners with their arms crossed looking at the camera proudly
Resources Shares

Why are ASX 200 mining shares smashing the benchmark on Wednesday?

Rio Tinto, BHP and Fortescue shares are all charging higher today.

Read more »

Two miners standing together.
Resources Shares

Why is the South32 share price getting battered today?

ASX 200 investors are bidding down South32 shares today.

Read more »