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.
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.