Resolute Mining (RSG) Q2 2024 TU earnings summary

Executive summary

• Gold production reached 90,787oz in Q2 2024, up 19% quarter-over-quarter, with both Syama and Mako mines performing in line with expectations and on track to meet full-year guidance.

• Group AISC dropped to $1,402/oz in Q2, the lowest since Q1 2022, with further reductions expected throughout 2024.

• Net cash position improved to $97m at quarter-end, with cash and bullion totaling $143m, supported by strong operational cash flows and a $30m Ravenswood payment.

• Completed a three-year turnaround, now focusing on organic growth, operational improvements, and advancing expansion projects at Syama and Mako.

• Exploration advanced at Tomboronkoto, Bantaco, Syama North, and Mansala, with updated resource estimates expected in Q3 2024.

Financial highlights

• Q2 gold sales totaled 88,321oz at an average price of $2,342/oz, all unhedged.

• H1 2024 EBITDA was approximately $116m, up from $101m in H1 2023.

• H1 2024 operating cash flow was $127m, a substantial increase from last year.

• H1 2024 capital expenditure was $44.3m, with $9.9m spent on exploration.

• Net cash at end of Q2 was $97m, with available liquidity of $143m and total borrowings of $46.8m, mainly from overdraft facilities.

Outlook and guidance

• 2024 production guidance reaffirmed at 345,000–365,000oz, with AISC expected to remain within $1,300–$1,400/oz.

• CapEx expected to double in H2 to around $80m, with 60–65% back-end loaded in Q4.

• EBITDA and cash flow anticipated to be higher in H2 due to increased production and gold prices.

• Updated Mineral Resource for Tomboronkoto and initial estimate for Mansala expected in Q3 2024.

• Syama North Mineral Resource Estimate update expected in H2 2024.