Africa-focused gold miner Resolute Mining Ltd (ASX: RSG) has made a final investment decision on its Doropo gold project in Côte d'Ivoire, further advancing its plans to become a leading multi-asset gold producer.
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Milestones ticked off
The company said the decision had followed extensive technical, economic, environmental, and social evaluations, as well as receipt of the mining permit from the Côte d'Ivoire government.
The company went on to say:
This milestone underpins the company's strategy to grow annual gold production above 500,000 ounces by the end of 2028 and validates the company's commitment to disciplined growth and generating shareholder value. The development of Doropo supports production over an initial mine life of approximately 13 years, with potential opportunities for expansion and value creation throughout the region.
Resolute released an updated definitive feasibility study (DFS) for Doropo in December, which showed that the mine would produce an average of 170,000 ounces of gold per year over 13 years, for a total of about 2.5 million ounces of gold.
The project is expected to produce gold at an all-in sustaining cost of US$1,406 per ounce, compared with the current spot price of gold, which is US$5,166.60.
The project is expected to cost US$516 million to construct, up from an earlier estimate of US$373 million, reflecting a larger-scale operation processing 4.9 million tonnes of ore per year, up from 4 million.
Resolute said in the DFS that in the first five years, Doropo was expected to generate EBITDA of US$364 million, and it was expected to pay itself back in 1.7 years.
Resolute Managing Director Chris Eger said regarding today's announcement:
This Final Investment Decision represents an important growth milestone for Resolute that advances our strategy to become a diversified gold producer, on track to achieve annual production of over 500 koz by the end of 2028. This decision reflects the quality of the Doropo Gold Project, the robustness of our technical work, and our confidence in the operating environment. We expect the Project to generate significant shareholder value whilst delivering enduring benefits to host communities and national partners.
Mr Eger said in December that, as well as benefiting shareholders, the Doropo project would generate more than US$420 million in royalties and create substantial employment opportunities for the local community.
Shares in the ASX 200 gold stock were 2.6% lower on Thursday at $1.42.
The company was valued at $3.12 billion at Wednesday's close.
