The Resolute Mining Limited (ASX: RSG) share price will be on watch on Wednesday following the release of its fourth quarter update.
How did Resolute perform in the fourth quarter?
Resolute finished the year in a relatively subdued fashion due to previously announced issues with the sulphide circuit at the Syama Gold Mine in Mali.
Total quarterly gold production increased by 2,092 ounces on the September quarter to 105,293 ounces.
This brought its FY 2019 gold production to a total of 384,731 ounces, compared to its guidance of 400,000 ounces. This comprises 243,058 ounces from Syama, 87,187 ounces from Mako (for the period under Resolute ownership), and 54,486 ounces from Ravenswood.
Management was pleased with its overall performance given the loss of production from the Syama sulphide circuit. It notes that the strong performances of its Mako Gold Mine in Senegal and Ravenswood Gold Mine in Queensland managed to offset some of the downtime at Syama.
The company is still working on its production costs for the period, but did reveal that it finished it with cash, bullion and listed investments of $181 million.
What’s next for Resolute?
The good news is that the Syama sulphide roaster was successfully repaired in December and is currently operating at nameplate capacity. This should mean a much stronger year for Resolute if everything goes to plan.
The company’s managing director and CEO, John Welborn, was pleased with FY 2019 and appears confident on the year ahead.
He said: “Syama sulphide production fell well short of our expectations in both the September and December quarters. Our operating and project teams have worked hard to offset lost production with strong performance from our other operating assets. The repairs to the Syama roaster are now complete and the sulphide circuit is ready for a strong performance in 2020.”
“We have now fully commissioned the Syama Underground Mine, refurbished the Syama sulphide circuit, acquired the Mako Gold Mine on highly value accretive terms, generated excellent exploration success at Tabakoroni, completed Stage 1 of the Ravenswood Expansion Project, and significantly progressed the strategic review of Bibiani. With a pipeline of growth opportunities and Syama positioned to deliver on its potential, I am highly optimistic for 2020,” he concluded.