Resolute Mining (RSG) H2 2023 earnings summary

Executive summary

• Returned to profit in 2023: revenue was $631.1m, reported net profit after tax $182.7m, and profit attributable to members $145.8m.

• Ended the year with $14.0m net cash, improving $45.6m from $31.6m net debt at end-2022.

Financial highlights

• Revenue fell 3% YoY to $631.1m; 329,061 oz sold versus 357,447 oz, partly offset by a higher realised price of $1,920/oz versus $1,819/oz.

• EBITDA rose 9% to $161.6m; reported net profit after tax was $182.7m versus a $34.7m loss in 2022. EBITDA included a one-time $16.4m non-cash benefit from reversal of historic Senegal tax provisions.

• Operating cash flow was $122.7m versus $90.9m in 2022; investing cash flow was an outflow of $68.9m versus a $15.2m inflow.

• Gross profit increased to $231.7m from $217.2m; net profit attributable to members was $145.8m versus a $34.1m loss.

Outlook and guidance

• 2024 production guidance remains 345,000–365,000 oz at AISC of $1,300–$1,400/oz.

• 2024 capital expenditure guidance remains $115m–$145m: Syama $90m–$110m, Mako $15m–$20m, and exploration $10m–$15m.

• 2024 priorities include sustainable cost reduction, delivering Syama Phase I expansion, and advancing a near-mine satellite resource to extend Mako beyond 2026.