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Top ASX 200 gold shares have plummeted over the month with Resolute Mining leading the way down

gold bars fulling to the ground and smashing representing falling prices of ASX gold shares
Image source: Getty Images

The Resolute Mining Limited (ASX: RSG) share price is down 22.9% since 27 July, despite gaining 1% in late afternoon trading today. That gives Resolute the ignoble position as the third worst performer on the S&P/ASX 200 Index (ASX: XJO) for the past month.

The ASX 200, by comparison, is up 1.3% over that same time.

Year to date, the Resolute Mining share price was in positive territory as recently as last Tuesday 18 August. Since then, it’s fallen sharply, leaving Resolute’s shares down 10.5% in 2020.

Like most shares on the ASX, Resolute shareholders were ravaged by the COVID-19 market rout earlier this year. From 24 February through to 16 March, the Resolute Mining share price fell 50%.

Despite the past month’s losses, Resolute’s share price is still up 79% from that March low.

What does Resolute do?

Resolute is a miner exploring for gold, and developing and operating gold mines in Australia and Africa. To date, Resolute’s mines have produced more than 8 million ounces of gold.

The company’s premier gold mine is its Syama Gold Mine in Mali, capable of producing more than 300,000 ounces of gold annually. Resolute plans to commence using an automated mining system at Syama which should decrease costs and improve output. Its second high quality gold mine in Senegal, the Mako Gold Mine, can produce around 140,000 ounces of gold per year. The company is also active in Ghana. 

Resolute shares first traded on the ASX in 1999.

Why is the Resolute share price down 23% over the past month?

Resolute isn’t the only ASX 200 gold producer seeing its share price tank over the last month.

The Gold Road Resources Ltd (ASX: GOR) share price is down more than 18% since 27 July, and the Saracen Mineral Holdings Limited (ASX: SAR) share price is down over 19%.

And it’s not just them. Three other ASX 200 gold shares make the list of worst 10 share price performers for the past month.

Gold’s 6% drop from its 6 August peak hasn’t helped the gold miners. Though today’s price of US$1,943 per troy ounce is right where gold was trading on 27 July. Some of the price falls can be blamed on disappointing guidance for the year ahead, or disappointing results for the year gone by.

But Resolute ran into a stickier problem this month when Mali’s president, Ibrahim Keïta resigned on 19 August. With the potential for political turmoil in Mali — where Resolute operates its premier Syama Gold Mine — investors were quick to hit the sell button. Resolute’s share price is down over 18% since then.

Looking ahead, Resolute Mining’s CEO, John Welborn, is hosting two conference calls for investors, analysts and the media tomorrow, 28 August, to discuss Resolute’s half year results for the year ending 30 June.

The Resolute share price will be one to keep any eye on tomorrow following those calls.

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Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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