28th Feb 2025 07:00
28 February 2025
Reporting Period
The reporting period of Resolute Mining Limited and its subsidiaries ("Resolute" or the "Group") is the year ended 31 December 2024 with the corresponding reporting period being for the year ended 31 December 2023. Unless otherwise stated, all dollar figures are expressed in United States dollars ($).
Results for Announcement to the Market
12 months ended | 12 months ended | ||||
31 December 2024 | 31 December 2023 | ||||
$'000 | $'000 | ||||
Revenue from ordinary activities | Up | 27% | to | 800,973 | 631,073 |
(Loss)/profit for the period | Down | (115)% | to | (13,280) | 91,533 |
(Loss)/profit after tax attributable to members | Down | (133)% | to | (21,480) | 65,577 |
Amount per security | Franked amount per security | |
Dividends | ||
Final dividend (per share) | N/A | N/A |
Record date for determining entitlements to the final dividend | N/A | N/A |
Payment date for the final dividend | N/A | N/A |
Franking | 0% franked | |
12 months ended | 12 months ended | |
31 December 2024 | 31 December 2023 | |
$ | $ | |
Net tangible assets backing (per share)1 | 0.23 | 0.26 |
1. Net tangible assets excludes right of use assets from the reported net assets in the statement of financial position.
This Appendix 4E - Preliminary final report has not been subject to audit and there is no audit report provided. This report should be read in conjunction with the Financial Report for the period ended 31 December 2024. The Financial Report for the period ended 31 December 2024 is currently being audited by Ernst & Young and will be finalised for lodgement with the ASX in March 2025.
Summary Financial Performance Review
The reporting period is the year ended 31 December 2024 with the corresponding reporting period being for the year ended 31 December 2023. Unless otherwise stated, all dollar figures are United States dollars ($).
The financial performance of Resolute for the year ended 31 December 2024 is summarised below:
Profit and Loss Analysis1 | 2024 | 2023 | |
($'000s) | |||
Revenue | 800,973 | 631,073 | |
Cost of sales excluding depreciation and amortisation | (392,120) | (400,378) | |
Royalties | (59,165) | (36,313) | |
Administration and other corporate expenses | (19,825) | (18,450) | |
Exploration expenses | (9,483) | (14,720) | |
EBITDA2 | 320,380 | 161,211 | |
Depreciation and amortisation | (127,658) | (81,044) | |
Net interest and finance costs | (3,897) | (11,176) | |
Inventories net realisable value movements and obsolete consumables | 26,065 | (12,665) | |
Fair value movements and treasury transactions | (19,957) | 22,442 | |
Other | (167,556) | 17,555 | |
Net profit before tax | 27,377 | 96,324 | |
Income tax expense | (40,657) | (4,791) | |
Reported net (loss)/profit after tax | (13,280) | 91,533 |
1. Amounts presented above are aggregate balances of certain line items presented in the Consolidated Statement of Comprehensive Income.
2. This is a non-GAAP measure with no standard meaning under IFRS.
Group earnings before interest, taxation, depreciation, and amortisation (EBITDA2) of $320.4 million in 2024 was a 27% improvement on the comparative period, primarily due to the higher revenue of $801.0 million from gold sales of 335,708 oz (up 2%) at an average realised price of $2,383/oz (up 24%). The higher ounces sold reflects increased gold poured (up 3%) driven by improved sulphide processing performance at Syama and higher production from Mako. In 2024, Syama poured 215,934 oz with production from the sulphide operation 8% higher. This was partially offset by 12% lower production from the oxide operation due to processing of stockpiles throughout the year and the impact of rains on pit access and therefore ore availability. In 2024, gold poured at Mako was 3% higher (123,935 oz) than the prior year despite lower-than-expected grades and disruption to mining operations during the rainy season.
Net interest and finance expenses decreased in 2024 to $3.9 million (2023: $11.2 million) due to reduced debt levels relative to 2023. During 2024 Resolute made the final $25 million principal repayment on the Term Loan portion of the Syndicated Facility Agreement.
Depreciation and amortisation increased to $127.7 million (2023:$81.0 million) in 2024 due to an increase in depreciable assets as well as in amortisation of rehabilitation assets.
Fair value movements and treasury transactions were $20.0 million in 2024 mainly due to unrealised foreign exchange losses.
Other costs of $167.6 million includes $154.8 million of indirect tax incurred in both Mali and Senegal. This includes the Malian State Settlement Protocol. In November 2024, Resolute signed a memorandum of understanding with the Government of Mali, expressed as the protocol ("Protocol"). Pursuant to the Protocol, Resolute made settlement payments totalling $159.9 million to the Government with the final payment made on 31 December 2024.
Part of the payments (approximately $70.0 million) made were used to offset indirect tax provisions from prior years with the remainder being expensed in the current period.
Discussions with the Government of Mali are ongoing to clarify points of the Protocol which may affect the indirect tax and tax expense charges for 2024.
Financial Position
Operating cash flows in 2024 were very robust at $113.1 million inclusive of the $159.9 million of settlement payments to the Malian Government. Cash flow was significantly higher than in 2023 and was primarily driven by stabilised operations, a focus on reducing costs, and higher realised gold prices throughout the year.
Cash balance at 31 December 2024 was $69.3 million. Net cash1,2 increased by $52.3 million to $66.3 million at 31 December 2024 (31 December 2023: $14.0 million). Total borrowings at 31 December 2024 was $34.8 million which are from overdraft facilities in Mali and Senegal. Resolute has available liquidity2 of over $100 million from a combination of existing cash and bullion as well as existing overdraft facilities.
In 2024, Resolute continued to invest in the business with spending on exploration, development, property, plant, and equipment totalling $102.9 million (2023: $71.8 million) including outlays for the Syama Sulphide Conversion Project, tailings facilities across both sites, the final principal repayment on the debt facility, capitalised stripping costs and project capital.
Syama Gold Mine, Mali
Total gold poured at Syama of 215,934 oz in 2024 was 2% higher than the prior year as both sulphide and oxide plants maintained high utilisation and milled near nameplate capacity of 3.93Mt versus 3.84Mt in 2023. As expected, the combined ore tonnes mined decreased to 3.21Mt (vs 4.24Mt in 2023) due to approximately 1Mt less oxide ore being mined in 2024. The sub-level cave underground operation maintained it productivity achieving approximately 2.4Mt of ore mining as it continues to benefit from productivity improvements from truck fill and loader operations that were implemented in 2023.
Syama's All-In Sustaining Cost (AISC)2 for 2024 was $1,497/oz. This was 1.7% higher than in 2023 and is partly attributed to increased royalty payments as the base rate increased from August as the gold price exceeded $2,500/oz.
Mako Gold Mine, Senegal
2024 production from Mako was 123,935 oz at an AISC2 of $1,244/oz. Gold production was higher than the prior year but was impacted by lower-than-expected grades and disruption to mining operations during the rainy season. Tonnes processed steadily increased over the year with mill availability increasing from 93% in H1 to 97% in H2. The AISC2 decreased by 9% due to lower mining and processing costs.
1. Net cash represents cash and bullion of $100.5 million less drawn overdraft balances of $34.2 million. 1
2. This is a non-GAAP measure with no standard meaning under IFRS.
Consolidated Statement of Comprehensive Income
for the year ended 31 December 2024
$'000 | Note | 2024 | 2023 |
Revenue from gold and silver sales | 1 | 800,973 | 631,073 |
Costs of production | 1 | (392,120) | (400,378) |
Gross profit | 408,853 | 230,695 | |
Depreciation and amortisation | 1 | (127,658) | (81,044) |
Royalties | 1 | (59,165) | (36,313) |
Gross profit from operations | 222,030 | 113,338 | |
Interest income | 1 | 5,018 | 2,406 |
Exploration expense | 1 | (9,483) | (14,720) |
Administration and other corporate expenses | 1 | (19,825) | (18,450) |
Share based payment expense | 1 | (1,104) | (605) |
Fair value movements and treasury transactions | 1 | (19,957) | 22,442 |
Inventories net realisable value movements and obsolete consumables | 1 | 26,065 | (12,665) |
Finance costs | 1 | (8,915) | (13,582) |
Indirect tax expense | 1 | (154,823) | (5,367) |
Other (expenses)/income | 1 | (11,629) | 23,527 |
Profit before tax from operations | 27,377 | 96,324 | |
Tax expense | 1 | (40,657) | (4,791) |
(Loss)/profit for the year from continuing operations | (13,280) | 91,533 | |
(Loss)/profit attributable to the parent | (21,480) | 65,577 | |
Non-controlling interest | 8,200 | 25,956 | |
(Loss)/profit for the year | (13,280) | 91,533 |
Consolidated Statement of Comprehensive Income (continued)
for the year ended 31 December 2024
$'000 | Note | 2024 | 2023 |
(Loss)/profit for the year (brought forward) | (13,280) | 91,533 | |
Items that may be reclassified subsequently to profit or loss | |||
Exchange differences on translation of foreign operations: | |||
- Members of the parent | (28,733) | (19,764) | |
- Non-controlling interest | 3,210 | (1,989) | |
Changes in the realisation of financial assets at fair value through other comprehensive income and other reserves, net of tax | - | (865) | |
Other comprehensive loss for the year, net of tax | (25,523) | (22,618) | |
Total comprehensive (loss)/gain attributable to: | |||
Members of the parent | (50,213) | 44,948 | |
Non-controlling interest | 11,410 | 23,967 | |
Total comprehensive (loss)/income for the year | (38,803) | 68,915 | |
Earnings per share | Cents | Cents | |
Basic (loss)/gain per share | 3 | (1.01) | 3.08 |
Diluted (loss)/gain per share | 3 | (1.01) | 3.08 |
The above consolidated statement of comprehensive income should be read in conjunction with the accompanying notes.
Consolidated Statement of Financial Position
for the year ended 31 December 2024
$'000 | Note | 2024 | 2023 |
Current assets | |||
Cash |
| 69,269 | 59,769 |
Other financial assets - restricted cash |
| 1,465 | 1,412 |
Receivables | 4 | 55,692 | 60,102 |
Inventories | 6 | 130,610 | 135,417 |
Prepayments and other assets |
| 12,362 | 11,021 |
Income tax asset |
| 1,703 | 1,810 |
Total current assets | 271,101 | 269,530 | |
Non current assets | |||
Receivables | 4 | 64,496 | 54,456 |
Inventories | 6 | 43,847 | 42,489 |
Exploration assets |
| 13,966 | 6,352 |
Development assets |
| 232,459 | 298,930 |
Property, plant and equipment |
| 200,819 | 160,892 |
Right of use asset |
| 6,980 | 10,106 |
Deferred tax asset |
| - | 3,005 |
Income tax asset | - | 7,317 | |
Total non current assets | 562,567 | 583,545 | |
Total assets | 833,668 | 853,078 | |
Current liabilities | |||
Payables | 119,038 | 67,302 | |
Financial liabilities | 5 | 34,840 | 74,066 |
Provisions | 7 | 84,882 | 66,188 |
Current tax liabilities | 1,029 | 4,791 | |
Lease liabilities | 3,144 | 3,070 | |
Total current liabilities | 242,933 | 215,417 | |
Non current liabilities | |||
Provisions | 7 | 92,399 | 85,863 |
Lease liabilities | 6,235 | 9,625 | |
Total non current liabilities | 98,634 | 95,488 | |
Total liabilities | 341,567 | 310,905 | |
Net assets | 492,101 | 542,173 | |
Equity attributable to equity holders of the parent | |||
Total Contributed Equity |
| 882,731 | 882,731 |
Reserves |
| (68,451) | (40,821) |
Accumulated losses |
| (273,244) | (251,764) |
Total equity attributable to equity holders of the parent |
| 541,036 | 590,146 |
Non-controlling interest | (48,935) | (47,973) | |
Total equity | 492,101 | 542,173 |
The above consolidated statement of financial position should be read in conjunction with the accompanying notes.
Consolidated Statement of Changes in Equity
for the year ended 31 December 2024
$'000 | Contributed equity | Net unrealised loss reserve | Convertible notes/ Share options equity reserve | Non-controlling interests reserve | Employee equity benefits reserve | Foreign currency translation reserve | Accumulated losses | Non-controlling interest | Total | ||
At 1 January 2024 | 882,731 | (9,745) | 4,321 | (636) | 22,210 | (56,971) | (251,764) | (47,973) | 542,173 | ||
Loss for the period | - | - | - | - | - | - | (21,480) | 8,200 | (13,280) | ||
Other comprehensive loss, net of tax | - | - | - | - | - | (28,733) | - | 3,210 | (25,523) | ||
Total comprehensive loss for the period, net of tax | - | - | - | - | - | (28,733) | (21,480) | 11,410 | (38,803) | ||
Dividends declared | - | - | - | - | - | - | - | (12,373) | (12,373) | ||
Share-based payments to employees | - | - | - | - | 1,104 | - | - | - | 1,104 | ||
At 31 December 2024 | 882,731 | (9,745) | 4,321 | (636) | 23,314 | (85,704) | (273,244) | (48,936) | 492,101 | ||
At 1 January 2023 | 882,731 | (9,348) | 4,876 | (724) | 20,447 | (37,207) | (317,341) | (71,940) | 471,494 | ||
Profit for the period | - | - | - | - | - | - | 65,577 | 25,956 | 91,533 | ||
Other comprehensive loss, net of tax | - | (397) | (555) | 88 | - | (19,764) | - | (1,989) | (22,618) | ||
Total comprehensive income for the period, net of tax | - | (397) | (555) | 88 | - | (19,764) | 65,577 | 23,967 | 68,915 | ||
Share-based payments to employees | - | - | - | - | 1,763 | - | - | - | 1,763 | ||
At 31 December 2023 | 882,731 | (9,745) | 4,321 | (636) | 22,210 | (56,971) | (251,764) | (47,973) | 542,173 |
The above consolidated statement of changes in equity should be read in conjunction with the accompanying notes.
Consolidated Cash Flow Statement
for the year ended 31 December 2024
$'000 | Note | 2024 | 2023 |
Cash flows from operating activities | |||
Receipts from customers | 800,973 | 632,444 | |
Payments to suppliers, employees and others | (511,028) | (500,182) | |
Exploration expenditure | (5,234) | (4,650) | |
Interest paid | (4,808) | (12,279) | |
Interest received | 306 | 519 | |
Malian State Settlement Protocol | (159,949) | - | |
Income tax paid | (7,195) | (9,285) | |
Net cash flows from operating activities |
| 113,065 | 106,567 |
Cash flows from investing activities | |||
Payments for property, plant & equipment | (70,579) | (27,264) | |
Payments for development activities | (23,902) | (40,299) | |
Payments for evaluation activities | (8,396) | (4,234) | |
Proceeds from sale of asset | - | 3,621 | |
Other investing activities | (812) | (725) | |
Deferred consideration from sale of Ravenswood Mine | 34,392 | - | |
Extension fee received on Ravenswood Promissory Note | 849 | - | |
Net cash flows used in investing activities | (68,448) | (68,901) | |
Cash flows from financing activities | |||
Repayment of borrowings | (25,000) | (55,000) | |
Dividend paid to non controlling interest | (6,942) | - | |
Repayment of principal portion of lease liability | (3,651) | (2,354) | |
Drawdown from short term finance facilities | (925) | - | |
Net cash flows used in financing activities | (36,518) | (57,354) | |
Net increase/(decrease) in cash and cash equivalents | 8,099 | (19,688) | |
Cash and cash equivalents at the beginning of the year | 59,769 | 80,873 | |
Exchange rate adjustment | 1,401 | (1,416) | |
Cash and cash equivalents at the end of the year | 69,269 | 59,769 |
The above consolidated cash flow statement should be read in conjunction with the accompanying notes
About this Report
The preliminary final report of Resolute Mining Limited and its subsidiaries for the year ended 31 December 2024 was authorised for issue in accordance with a resolution of directors.
Resolute Mining Limited (the parent) is a for profit company limited by shares incorporated and domiciled in Australia whose shares are publicly traded on the Australian Securities Exchange and the London Stock Exchange.
Basis of Preparation
This report is based on accounts that are in the process of being audited.
This report does not include all of the notes normally included in an Annual Financial Report. Accordingly, this report is to be read in conjunction with the financial report for the year ended 31 December 2023 and any public announcements made by Resolute during the reporting period in accordance with the continuous disclosure requirements of the Corporations Act 2001.
Rounding of Amounts
The Financial Report has been prepared in United States dollars and all values are rounded to the nearest thousand dollars ($'000) unless otherwise stated.
1.Segment revenues and expenses
For the year ended 31 December 2024 | Mako (Senegal) | Syama (Mali) | Corp/Other (b) | Total |
$'000 | $'000 | $'000 | $'000 | $'000 |
Revenue from gold and silver sales (a) | 288,339 | 512,634 | - | 800,973 |
Costs of production | (134,700) | (257,416) | (4) | (392,120) |
Segment gross profit | 153,639 | 255,218 | (4) | 408,853 |
Depreciation and amortisation | (66,079) | (60,473) | (1,106) | (127,658) |
Royalties | (14,417) | (43,863) | (885) | (59,165) |
Segment gross profit from operations | 73,143 | 150,882 | (1,995) | 222,030 |
Interest income | 933 | 148 | 3,937 | 5,018 |
Exploration expense | (3,697) | (5,603) | (183) | (9,483) |
Administration and other corporate expenses | - | - | (19,825) | (19,825) |
Share based payment expense | - | - | (1,104) | (1,104) |
Fair value movements and treasury transactions | (1,052) | (15,946) | (2,959) | (19,957) |
Inventories net realisable value movements and obsolete consumables | 2,020 | 24,045 | - | 26,065 |
Finance costs | (1,889) | (5,989) | (1,037) | (8,915) |
Other expenses | - | (11,629) | - | (11,629) |
Indirect tax expense | (41,205) | (102,776) | (10,842) | (154,823) |
Profit before tax from operations | 28,253 | 33,132 | (34,008) | 27,377 |
Tax expense | (16,395) | (24,339) | 77 | (40,657) |
Loss for the year from continuing operations | 11,858 | 8,793 | (33,930) | (13,280) |
(a) Revenue from external sales for each reportable segment is derived from several customers.
(b) This information does not represent an operating segment as defined by AASB 8 'Operating Segments' and forms part of the reconciliation of the results and positions of the operating segments to the financial statements.
1.Segment revenues and expenses (continued)
For the year ended 31 December 2023 | Mako (Senegal) | Syama (Mali) | Corp/Other (b) | Total |
$'000 | $'000 | $'000 | $'000 | $'000 |
Revenue from gold and silver sales (a) | 229,505 | 401,568 | - | 631,074 |
Costs of production | (136,235) | (262,472) | (1,671) | (400,378) |
Segment gross profit | 93,270 | 139,097 | (1,671) | 230,696 |
Depreciation and amortisation | (44,491) | (34,121) | (2,432) | (81,044) |
Royalties | (11,475) | (24,066) | (772) | (36,313) |
Segment gross profit from operations | 37,304 | 80,909 | (4,874) | 113,339 |
Interest income | - | 22 | 2,384 | 2,406 |
Exploration expense | (4,455) | (7,832) | (2,433) | (14,720) |
Administration and other corporate expenses | - | - | (18,450) | (18,450) |
Share based payment expense | - | - | (605) | (605) |
Fair value movements and treasury transactions | (4,339) | 28,749 | (1,968) | 22,442 |
Inventories net realisable value movements and obsolete consumables | (3,569) | (9,096) | - | (12,665) |
Finance costs | (1,793) | (5,062) | (6,727) | (13,582) |
Indirect tax expense | (4) | (5,363) | - | (5,367) |
Other income | (24) | (140) | 23,691 | 23,527 |
Profit before tax from operations | 23,121 | 82,188 | (8,983) | 96,324 |
Tax expense | 15,459 | (20,250) | - | (4,791) |
Profit for the year from continuing operations | 38,579 | 61,938 | (8,983) | 91,533 |
(a) Revenue from external sales for each reportable segment is derived from several customers.
(b) This information does not represent an operating segment as defined by AASB 8 'Operating Segments' and forms part of the reconciliation of the results and positions of the operating segments to the financial statements.
2.Dividends paid or proposed
No dividend has been declared for the year ended 31 December 2024.
3.Earnings per share
$'000 | 31 December 2024 | 31 December 2023 |
Operating (loss)/profit after tax from continuing operation and preference dividends | (21,480) | 65,578 |
Weighted average number of ordinary shares outstanding during the period | 2,129,050,013 | 2,129,006,569 |
Earnings per share | Cents | Cents |
(Loss)/earnings per share | (1.01) | 3.08 |
Diluted (loss)/earnings per share | (1.01) | 3.08 |
4.Receivables
31 December 2024 | 31 December 2023 | |
$'000 | $'000 | |
Current | ||
Gold price contingent receivable | - | 34,060 |
Trade receivables | 1,151 | 8,743 |
Taxation receivables | 54,541 | 17,299 |
Total | 55,692 | 60,102 |
Non current | ||
Other receivables | 29 | 29 |
Promissory notes receivables | 42,038 | 42,378 |
Taxation receivables | 22,429 | 12,049 |
Total | 64,496 | 54,456 |
5.Financial liabilities
31 December 2024 | 31 December 2023 | |
$'000 | $'000 | |
Current | ||
Bank overdraft | 34,840 | 46,196 |
Insurance premium funding | - | 180 |
Borrowings | - | 25,218 |
Total | 34,840 | 71,594 |
6.Inventories
31 December 2024 | 31 December 2023 | |
$'000 | $'000 | |
Doré bars | 17,405 | 13,340 |
Gold in circuit | 47,808 | 50,837 |
Ore stockpiles | 56,619 | 47,523 |
Consumables, spare parts and supplies | 52,625 | 66,206 |
Total inventories | 174,457 | 177,906 |
Less: Non current metal inventories | (43,847) | (42,489) |
Current portion of inventories | 130,610 | 135,417 |
7.Provisions
31 December 2024 | 31 December 2023 | |
$'000 | $'000 | |
Current | ||
Site restoration | 2,215 | 626 |
Employee entitlements | 10,639 | 5,744 |
Dividend payable | 5,567 | 136 |
Tax provisions | 64,071 | 57,021 |
Other provisions | 2,390 | 2,661 |
Total | 84,882 | 66,188 |
Non current | ||
Site restoration | 92,204 | 85,570 |
Employee entitlements | 195 | 293 |
Total | 92,399 | 85,863 |
8.Subsequent events
There were no subsequent events post the balance sheet date.
Related Shares:
Resolute Mining