S&P/ASX 200 Index (ASX: XJO) gold stock Resolute Mining Ltd (ASX: RSG) has handed investors some outsized gains over the past year.
That outperformance has been spurred by the miner's own operational successes on and beneath the ground, and a surging gold price.
In late morning trade today, Resolute Mining shares are up 1.1%, changing hands for $1.38 apiece. For some context, the ASX 200 is down 0.5% at this same time.
Taking a step back, shares in the ASX 200 gold stock are up an impressive 142.1% in 12 months, smashing the 4.3% one-year gains posted by the benchmark index.
Here's why Resolute Mining shares are outperforming again today.
Image source: Getty Images
ASX 200 gold stock lifts on fourth mine potential
Resolute Mining shares are holding their own in today's sinking market after the miner announced the results of a scoping study for its ABC Project, located in Cote d'Ivoire.
The ABC Project has a Mineral Resource Estimate (MRE) of 2.16 million ounces of gold.
The ASX 200 gold stock said the preliminary technical and economic study confirmed the ABC Project's strong economic potential. Should the project get the green light, it will be Resolute Mining's second operating gold mine in Cote d'Ivoire and fourth mine in total.
The scoping study revealed the ABC Project could produce around 141,000 ounces of gold per year over a 12-year mine life. Total gold production is estimated at 1.7 million ounces.
On the cost front, Resolute estimates an all-in sustaining cost (AISC) of US$1,614 per ounce, which it noted will support "robust operating margins". Capital costs are expected to be around US$648 million.
The ASX 200 gold stock expects the project could deliver average annual free cash flow of US$262 million and earnings before interest, taxes, depreciation and amortisation (EBITDA) of US$323 million in the first five years of production. That's based on a US$3,500 per ounce gold price.
To date, Resolute has drilled more than 25,000 metres, saying it expects the results of that drill campaign will support an updated MRE in the second half of 2026.
What did Resolute Mining management say?
Commenting on the study results helping lift the ASX 200 gold stock today, Resolute Mining CEO Chris Eger said, "Resolute is very pleased to announce the results of the scoping study for ABC which demonstrates the significant economic potential of the ABC Project."
Eger added:
Building on the strong results from the ongoing step out drilling at the Kona South and Central deposit, we are confident the project has potential to grow and become more commercially attractive…
The scoping study now provides Resolute with the required technical platform to commence the DFS [Definitive Feasibility Study]. Progress on exploration, metallurgical testwork, site investigations and permitting has been prioritised with the target of completing the required workstreams to finalise a DFS by the end of 2027.
