The Resolute Mining Limited (ASX: RSG) share price is being hit today after the ASX miner released its full-year FY19 results this afternoon.
At the time of writing, Resolute shares are trading 11.45% lower at $1.005 per share while the S&P/ASX 200 Index (INDEXASX: XJO) is down by 3.20%.
What did Resolute report?
For the full year to December 2019, Resolute reported sales revenue of $770 million, a significant increase on the $466 million recorded in FY18. This year's revenue result comprised $656 million from continuing operations at both its Syama and Mako operations.
Underlying earnings before interest, tax, depreciation and amortisation (EBITDA) for the 12-month period came to $202 million after adjustments, compared to $51 million in FY18.
Meanwhile, Resolute reported net operating cash flow of $124 million, significantly higher than the $34 million recorded in FY18.
The company did, however, report a net loss after tax for continuing operations of $59 million. This net loss after tax corresponded to a loss per share of $0.07, which is likely to be what's dragging Resolute shares down today.
Resolute reported that investment in growth projects and other expenditure relating to capital and exploration amounted to $308 million.
The company also reported group gold sales of 394,920 ounces (oz), adding that the average gold price received was A$1,933/oz. Resolute's group gold production came in at of 384,731oz at an all-in sustaining cost (AISC) of A$1,577/oz.
The ASX miner ended up with gross debt of $611 million at 31 December 2019 and net debt of $460 million.
Resolute noted no final dividend has been declared for FY19.
Management commentary
Commenting on Resolute's FY19 results, Managing Director and CEO, Mr John Welborn, said:
"Resolute's financial performance was negatively impacted in FY19 by the ramp up of the Syama Underground Mine and the structural repairs required to the Syama roaster. These operational issues, combined with various accounting treatments relating to inventory valuations and the acquisition of Toro Gold, resulted in the Company recording a net loss for the period."
"This disappointment is balanced by the optimism within our team for a much stronger performance in 2020, our commitment to meet current guidance, and Syama and Mako's ability to generate strong ongoing free cash flow based on the investments we have made in both assets in FY19," he added.
Guidance and outlook for FY20
Resolute released guidance for the current financial year at 500,000oz at an AISC of US$980/oz. The company noted that this guidance will be restated to the market following the completion of the miner's sale of Ravenswood.
Gold production from Resolute's Syama operations is expected to be 260,000oz at an AISC of US$960/oz. Resolute commented that Syama sulphide production is expected to be a strong performer for the miner during 2020.
At the miner's Mako operations, mining and processing are anticipated to continue during 2020 at similar rates to those observed in 2019. However, Resolute did note that ore grades are expected to be slightly lower due to depletion of high-grade stockpiles during the period. Gold production from the Mako operations for 2020 is expected to be 160,000oz at an AISC of US$800/oz.
