The Resolute Mining Limited (ASX: RSG) share price will be on watch on Wednesday after the release of its second quarter production update.
How is Resolute performing in FY 2020?
For the quarter ending 30 June 2020, Resolute achieved gold production of 107,183 ounces at an all-in sustaining cost (AISC) of US$1,033 an ounce.
This was a 3% decline on production during the first quarter, but a 37% lift on production during the prior corresponding period.
During the quarter, Syama Sulphide gold poured lifted 64% to 35,248 ounces. This was supported by Syama Oxide gold poured of 28,457 ounces and Mako gold poured of 43,478 ounces.
Managing Director and CEO, John Welborn, commented: “I am particularly pleased with the performance of the Syama Underground Mine and Syama Sulphide operations during the June quarter.”
“We continue to focus on further improvements to Syama Underground and Sulphide operations while ensuring the positive performance in the June quarter is sustainable and sets a benchmark for quarterly performance from now on,” he added.
What about sales?
Resolute had a strong quarter of sales. It sold 110,660 ounces of gold, up 8% from the March quarter.
Positively, it experienced a 3% quarterly rise in its average realised price to US$1,446 an ounce. Based on its AISC of US$1,033 an ounce, this gives Resolute a margin of US$413 an ounce.
Which, when multiplied with its 110,660 ounces of gold sold, equates to an operating profit of approximately US$45.7 million.
Looking ahead, the company believes it is on target to achieve its FY 2020 guidance of 430,000 ounces at an AISC of US$980 an ounce.
Mr Welborn said: “Production of 107,183oz of gold during the June quarter meets our expectations and results in year to date production to 217,946oz placing the Company in a strong position to deliver our full year guidance of 430,000oz.”
“We expect to continue to improve production and deliver lower costs at Syama in the second half of 2020 while we evaluate further value enhancements and exciting exploration opportunities.”
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