13th Jan 2020 09:34
(Alliance News) - Resolute Mining Ltd on Monday guided for a strong rise in production in 2020 amid ramp up of the Syama and Ravenswood mines.
Australian miner Resolute is targeting 500,000 ounces of gold in 2020, which would be 30% higher than the 384,731 ounces reported last week for 2019, a figure which missed guidance of 400,000 ounces.
Production in 2019 was hampered due to an unscheduled stoppage at Mali's Syama mine, caused by a crack in the roaster.
Gold production in Syama in 2020 is forecast at 260,000 ounces, up 7.0% compared to 243,058 ounces in 2019. The roaster is now fully operational again, and the long-term target at Syama is 300,000 ounces a year as Resolute accelerates underground mining.
Resolute sees all-in sustaining costs of USD1,090 per ounce for 2020. The 2019 figure, alongside other numbers such as capital expenditure, is still being finalised, and will be released on January 13.
At Ravenswood, located in Queensland, Australia, completed of a stage one expansion has increased processing capacity, meaning production for 2020 is targeted at 80,000 ounces of gold. This would be nearly double 2019's figure.
At Resolute's other mine, Mako in Senegal, the company sees mining and processing carrying on at similar rates in 2020 to 2019, though grades will be lower due to depletion of higher-grade stockpiles.
Gold production at Mako is guided at 160,000 ounces in 2020, from 87,187 ounces in 2019. However, the 2019 figure only includes Mako production since Resolute took it over in July, in the USD270 million acquisition of Toro Gold. In 2018, Mako produced 156,926 ounces of gold.
"Production guidance for 2020 of 500,000 ounces is a significant milestone for Resolute. Following completion of the repairs at Syama in late 2019, we have started 2020 with all our operations operating at nameplate capacity and generating positive cashflows," said Resolute Managing Director & Chief Executive John Welborn.
"Strong operating cashflows, and reduced capital demands, will support a stronger balance sheet and create further opportunities for Resolute's growth and ambition," he added.
Shares were up 1.5% on Monday morning in London at a price of 60.20 pence each.
By George Collard; [email protected]
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