In morning trade the Resolute Mining Limited (ASX: RSG) share price is on course to finish the week with a day in the red.
At the time of writing the gold miner's shares are down 4% to $1.65 following the release of its first half results.
How did Resolute perform in the first half?
For the six months to June 30, Resolute delivered earnings before interest, tax, depreciation and amortisation (EBITDA) of $78 million, which was an increase of 169% on the prior corresponding period.
This was driven by a combination of strong growth in gold production and sales, a small rise in the average gold price received, and a reduction in its all-in sustaining costs (AISC).
Total gold production increased 24.6% to 176,237 ounces and gold sales rose 25.1% to 176,294 ounces. This led to total revenue of $324 million, up 33.3% on the prior corresponding period.
Resolute's AISC reduced to $1,173 an ounce from $1,317 ounce a year earlier, allowing the company to benefit fully from a 4.5% lift in the average gold price received of $1,800 an ounce.
And although net profit after tax was flat at $39 million, the company's net operating cash flow increased by a solid 79% to $95 million. The flat profit was due to higher production costs at Syama, increased depreciation and amortisation, and increased finance costs.
One of the key drivers of this result was the company's Syama Underground Mine. It achieved commercial production rates late in the half and is expected to reach full production by the end of the year.
Managing Director and CEO, Mr John Welborn, commented: "The ramp up of the Syama Underground Mine to full production will further increase Resolute's production base, margins, and cash flows. The acquisition of Toro Gold is a further boost to the profitability and cash generating capacity of our business."
Looking ahead, Resolute's production and cost guidance for the 12 months to December 31 is 400,000 ounces of gold at an all-in sustaining cost of US$960 per ounce (US$828 per ounce in the first half) following the acquisition of Toro Gold.
Elsewhere in the industry, the shares of Newcrest Mining Limited (ASX: NCM) and Northern Star Resources Ltd (ASX: NST) have come under pressure after a pullback in the gold price overnight.
