Resolute Mining (RSG) Q3 2024 TU earnings summary

Executive summary

• Gold producer operating Syama (Mali) and Mako (Senegal), with exploration in Côte d'Ivoire and Guinea; recent expansion includes a new JV in Ivory Coast.

• Q3 2024 gold production was 85,043oz, down 6% QoQ due to extreme rainfall at Mako and lower grades.

• Net cash increased by $49m to $145.6m, supported by strong operational cash flows and Ravenswood sale proceeds.

• Full-year 2024 production expected at or below the lower end of 345,000–365,000oz guidance, mainly due to Mako's lower grades and weather disruptions.

• Group AISC rose to $1,452/oz, driven by lower production and higher royalties in Mali.

Financial highlights

• Q3 gold sales reached 95,242oz at an average price of $2,493/oz, exceeding production due to prior quarter stock.

• Q3 operating cash flow was $61.1m; nine-month 2024 operating cash flow reached $188.3m, up from $105m last year.

• Capital expenditure in Q3 was $26.6m; year-to-date $71m; 2024 capex expected at the low end of guidance.

• Available liquidity exceeded $250m, including $168m in cash, $20m in bullion, and $140m in undrawn debt facilities.

• Total borrowings at quarter-end were $42.5m, down from $46.8m in Q2.

Outlook and guidance

• 2024 production and sales expected at or below 345,000oz, at the bottom of guidance, with AISC at the upper end of $1,300–1,400/oz due to royalty increases.

• Mako mine's 2024 output forecast at ~130koz due to weather impacts.

• CapEx for 2024 forecasted at $115–145m, trending lower as $15–20m for Syama Sulphide Conversion Project is deferred to 2025.

• Exploration spend for 2024 expected to reach ~$20m, above original budget, with further increases planned for 2025.