Resolute Mining (RSG) Q4 2024 TU earnings summary

Executive summary

• 2024 was marked by strong operational performance and cash generation, with group gold production of 340,000 ounces, slightly below guidance due to lower output at Mako but offset by Syama's strong results.

• EBITDA nearly doubled to approximately $310–311 million, supported by higher gold prices and production.

• The company ended 2024 with over $100 million in liquidity and a net cash position of $66.3 million, with no outstanding debt after final loan repayments.

• Significant challenges included the temporary detainment of key personnel and a $160 million settlement with the Mali government, resolving all outstanding claims and facilitating transition to the new mining code.

• Syama exceeded production guidance, while Mako underperformed due to lower grades and heavy rains.

Financial highlights

• Revenue increased by 27% year-over-year to approximately $800 million, with EBITDA up 93% to $311 million, driven by higher realized gold prices and the end of the hedging program.

• Operating cash flow rose to $250 million, up from $140 million in 2023.

• All-in sustaining costs (AISC) were $1,476/oz, above guidance due to increased royalty rates in Mali and lower Mako output.

• Capital and exploration expenditure reached $117 million, at the low end of guidance, with $20 million for exploration.

• Cash and bullion at year-end totaled $101 million.

Outlook and guidance

• 2025 group production is guided at 275,000–300,000 ounces at an AISC of $1,650–$1,750/oz, reflecting higher costs from Mali's new mining code.

• Free cash flow generation is expected to remain strong, with over $100 million anticipated at current gold prices.

• Syama is expected to produce 195,000–210,000 ounces at an AISC of $1,700–$1,800/oz, with a focus on depleting oxides before ramping up the SSEP/SSCP in 2026.

• Mako production will decline to 80,000–90,000 ounces as mining transitions to stockpile processing, with AISC of $1,300–$1,400/oz.

• 2025 capex guidance is $109–126 million, with $20–25 million allocated to exploration, focusing on Ivory Coast (Labadou/La Debo) and Senegal (Tomboronkoto, Bantaco).