Australia- and London-listed Resolute Mining has reported a “strong” second quarter across both the Syama operation, in Mali, and the Mako project, in Senegal.

In its quarterly activities report for the three months ended June 30, the company noted that gold poured amounted to 90 787 oz, up from 76 351 oz in the first quarter of 2024, aligning with expectations. The all-in sustaining cost (AISC) was $1 402/oz, reducing from $1 487/oz in the first quarter, attributed to higher gold production and ongoing cost and efficiency improvements.

“This performance has put Resolute into its strongest position in a long time with net cash at June 30 of $96.6-million. Both operations have performed in line with expectations for the quarter with further systematic improvements being made at Syama and strong grades at Mako,” Resolute MD and CEO Terry Holohan said on July 29.

Gold sales totalled 88 321 oz at an average realised price of $2 342/oz, compared with 69 000 oz at $1 950/oz in the first quarter, with all gold sales being unhedged and sold at spot prices.

“We ended the quarter with 90 787 oz of gold poured with an average AISC of $1 402/oz – 6% lower than the prior quarter and the lowest level achieved by the group since the first quarter of 2022.

“This was principally driven by lower costs at Mako and emphasises Resolute’s continued focus on cost reductions across the group, which we expect will continue through the remainder of the year given we comfortably ‘broke through’ $1 400/oz level during the quarter, in line with our guidance for the full year,” Holohan said.

Capital expenditure, excluding exploration, was $19.6-million, down from $24.8-million in the first quarter, consisting of $14.5-million in non-sustaining capital expenditure and $5.1-million in sustaining capital expenditure.

“Resolute’s free cash flow for the quarter was extremely strong. This is down to the combination of increased production and a higher average realised gold price as all gold sales were made at the spot price given syndicated debt was fully paid off in the first quarter and the company remains unhedged. The company’s operating cash flow before working capital changes in the second quarter was $47-million versus $26-million in the first quarter.”

Total exploration expenditure was $7.6-million, with $5.7-million in capital and $1.9-million expensed, as drilling programmes continued in Senegal, Mali and Guinea throughout the quarter.

The company received a first-tranche cash payment of A$30-million (about $20-million) from a restructured gold price contingent promissory note from the sale of the Ravenswood gold mine in the first quarter of 2020.

Net cash stood at $96.6-million, up from $33.9-million in the first quarter, including cash and bullion of $143.3-million. Earthworks and foundations for the Syama sulphide conversion project progressed on schedule.

“We also received A$30-million from Ravenswood with a further A$20-million expected in the third quarter of this year. This along with the operating cash flows has increased our net cash by $63-million over the quarter. We anticipate further cash build throughout the second half as both sites are scheduled to produce more ounces than in the first half and as we expect to continue to benefit from spot gold prices,” Holohan said.

Resolute’s first-half earnings before interest, taxes, depreciation and amortisation were about $116-million, with cash generation of $73.1-million before interest and debt payments, working capital movements, and the Ravenswood payment.

The company maintained its full-year guidance for production at 345 000 oz to 365 000 oz at an AISC of $1 300/oz to $1 400/oz and capital expenditure of between $115-million and $145-million.

“The company remains focused on extending the life of the Mako operation and is pleased with the drilling being done at both the nearby Tomboronkoto and Bantaco exploration projects. An updated mineral resource for Tomboronkoto is expected in the third quarter, along with an initial mineral resource estimate for the Mansala prospect in Guinea,” Holohan said.

In addition, Resolute recorded no lost-time injuries during the quarter under review, although the total recordable injury frequency increased to 2.11 from 1.74 in the prior quarter with four recordable injuries.

Further, Andrew Wray was appointed nonexecutive director and also became a member of the audit and risk, remuneration and nomination committees.