The Resolute Mining Ltd (ASX: RSG) share price is on watch after falling 1% after the Aussie mining group reported its latest quarterly update for Q4 2019.
What were the highlights from Resolute's quarterly update?
Some of the key highlights from Resolute's latest update include the following:
- Gold production for 12 months through to 30 June 2019 of 305,436 ounces at an all-in sustaining cost (AISC) of US$924 per ounce
- June 2019 Quarter gold production of 78,132 ounces at an AISC of US$939 per ounce
- Syama sulfide circuit quarterly production of 22,532 ounces up 69% from March quarter
- Average gold price received for June 2019 Quarter of US$1,274 per ounce (A$1,815 per ounce) from gold sales of 68,900 ounces
- Significant ramp-up milestone with the Syama Underground Mine reaching commercial production rates
- Major gold inventory upgrade at Ravenswood with 1 million ounces being added to Ore Reserves
- Ravenswood Expansion Study demonstrating the potential to deliver 200,000 ounces annually for 15 years
- Tabakoroni Mineral Resource Update confirms 1 million ounces at 5.1 grams per tonne of gold
- Cash, bullion and listed investments as at 30 June 2019 of A$56 million (US$40 million)
- Gold in-circuit inventory as at 30 June 2019 of 66,917 ounces worth an additional A$134 million (US$94 million)
- New FY19 guidance (31 December) for Syama of 270,000 ounces at an AISC of US$890 per ounce
- New FY19 guidance (31 December) for Resolute of 330,000 ounces at an AISC of US$990 per ounce
The company said it had updated its annual production and cost guidance to match the change in its financial year to a 12-month period ending on 31 December.
According to Resolute's management, new annual production and cost guidance for the 12 months to 31 December has been upgraded to 330,000 ounces of gold at an AISC of US$990 per ounce.
How has the Resolute Mining share price performed in 2019?
While the Resolute Mining share price fell 1.1% lower in early trade, the stock has recovered slightly to be trading at $1.74 per share at the time of writing.
At this valuation, the Resolute Mining share price remains around 48% higher so far in 2019 as one of the better performing Metals and Mining stocks within the S&P/ASX 200 (INDEXASX: XJO) index.
I'd personally be waiting until the ASX August reporting season is all wrapped up before evaluating any bargain buys, given what I see as the potential for earnings outperformance but revised FY20 growth expectations in the coming month.
