ASX-listed gold miner Resolute Mining has reported a mixed performance for the quarter ended September 30, as unprecedented rains affected mining operations at Mako, in Senegal, and the oxide operation in Syama, Mali.

The company poured 85 043 oz of gold for the quarter, slightly below expectation owing to extreme rainfall events at Mako and lower-than-expected ore grades.

The all-in sustaining cost (AISC) for the quarter was $1 452/oz.

Resolute MD and CEO Terry Holohan explains that Mako experienced unprecedented rain in September, which resulted in temporary flooding in the lower elevation of the pit, hindering mining operations for four weeks.

He adds that grades at Mako were also impacted by a 15% negative reconciliation from the grade control model, which the company expects to continue for the remaining ore in the pit owing to inconsistencies in the orebody as it nears the end of its mine life.

This, in combination with the impact of the rains, means that production at Mako will be below guidance for the full-year, says Holohan.

The lower production at Mako, along with the impact of a higher royalty rate of about $70/oz, in Mali, because of the higher gold price environment, have resulted in Resolute’s overall full-year production being at or below the lower-end of guidance of 345 000 oz to 365 000 oz, while AISC is expected to be at the upper end of guidance of $1 300/oz to $1 400/oz.

“Despite unprecedented rains affecting mining operations at both Mako and the oxide operation in Syama, the company still produced 85 000 oz of gold and generated substantial free cash flow of close to $50-million.

“At Syama, sulphide operations continued to perform better than expected for the quarter and should perform similarly in the fourth quarter and beyond, demonstrating the improvements we have put in place over the last three years,” Holohan says.

Resolute sold 95 242 oz of gold at an average realised spot price of $2 493/oz for the September quarter.

The company also reported net cash of $145.6-million, including cash and bullion of $188.3-million for the quarter.

Meanwhile, Holohan says the conversion of the Syama oxide plant to a sulphide processing facility remains on track for treating sulphides from the higher-grade Syama North openpit areas from mid-2025.

Resolute notes that its full-year capital expenditure (capex) is expected to be below guidance of $115-million to $145-million, owing to about $20-million of capex for the Syama sulphide conversion project having been deferred into 2025.