In morning trade the Resolute Mining Limited (ASX: RSG) share price has charged higher following the release of its third quarter production update.
At the time of writing the gold producer's shares are up over 5% to $1.23.
How did Resolute perform in the third quarter?
In the third quarter of FY 2019 the company achieved total quarterly gold production of 98,105 ounces, which was up 47% on the prior corresponding period and 33% or 24,414 ounces on the December quarter.
This impressive quarter was driven by the high grade and above budget recoveries achieved from Resolute's new mine at Tabakoroni. This was supported by strong production from its Syama operation, which increased by more than 50% to 84,552 ounces and represented a site record for quarterly output.
As a result of the strong quarter, management confirmed that it is on track to achieve its FY 2019 production guidance of 300,000 ounces of the precious metal.
And while management didn't reveal its all-in sustaining cost (AISC) for the three months, it confirmed that it is also on track to achieve its AISC guidance of A$1,280 an ounce (US$960 an ounce).
This compares favourably to the current spot gold price of US$1,296.10 an ounce and last year's performance. In FY 2018 the company achieved gold production of 284,000 ounces at an AISC of US$1,052 an ounce (A$1,355 an ounce).
Should you invest?
As I'm bullish on equities and reasonably bearish on the precious metal, I won't be a buyer of Resolute's shares at this point.
However, if you're bullish on gold or want a little exposure to it for diversification purposes, I think Resolute could be a great option.
In addition to Resolute, fellow gold miners Newcrest Mining Limited (ASX: NCM) and St Barbara Ltd (ASX: SBM) could also be worth considering if you're looking to invest in the gold miners right now.
