Resolute Mining (RSG) Q3 2024 TU earnings summary

Executive summary

• Gold production in Q3 2024 was 85,043 oz, down 6% quarter-over-quarter due to severe rainfall at Mako and lower ore grades, with group production for 2024 expected at or just below the lower end of 345,000–365,000 oz guidance.

• Net cash increased by $49 million to $146 million during the quarter, supported by strong operational cash flows and a second tranche payment from the Ravenswood sale.

• Group AISC rose to $1,452/oz, mainly from lower Mako output and higher royalties in Mali.

• Exploration advances included updated resources at Tomboronkoto (Senegal), initial resource at Mansala (Guinea), and a new JV in Côte d'Ivoire.

• No lost time injuries were reported, with TRIFR improving to 1.37.

Financial highlights

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

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

• Capital expenditure in Q3 was $26.6 million; exploration spend was $6.3 million.

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

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

Outlook and guidance

• 2024 production guidance is 345,000–365,000 oz, with output expected at or below the lower end and AISC at the upper end of $1,300–1,400/oz due to higher royalties and weather impacts.

• Mako mine's 2024 production forecast is approximately 130,000 oz.

• 2024 capital expenditure and exploration spend both expected at the low end of guidance, with $15–20 million of Syama Sulphide Conversion Project capex deferred to 2025.

• Exploration spend for 2024 expected to reach ~$20 million, above the original $16–18 million budget.

• Syama Sulphide Conversion Project remains on track for mid-2025 commissioning.