Resolute's Syama gold mine
Australia- and London-listed gold producer Resolute Mining says 2024 had been one of its strongest years from an operational and cash generation point of view, with operations at the Syama mine, in Mali, continuing to perform well following improvements.
Acting CEO Chris Eger says the Mako operation also continues to generate substantial cash flows despite some rain impacts in the second half of the year and lower grades.
The company plans to stop openpit mining at Mako by the second quarter and start with lower-grade stockpile material processing; therefore, it has lowered its 2025 full-year production guidance to between 275 000 oz and 300 000 oz.
Resolute produced 340 000 oz in 2024, which was slightly below guidance of between 345 000 oz and 365 000 oz.
The company reported earnings before interest, taxes, depreciation and amortisation of about $310-million for the year, compared with $161-million in the prior year, on the back of higher average realised gold prices.
Notably, the company generated an operating cash flow of more than $200-million after capital expenditure (capex), exploration and working capital spend.
The company’s net cash balance was at $66.3-million as of December 31, which reflects settlements of $160-million that Resolute paid to the Mali government.
Resolute spent $96.3-million on capex in the year, including just under $32-million for the Syama sulphide conversion project and $29-million in sustaining capital.
The company spent an additional $20-million on exploration in the year.
The group plans to spend between $109-million and $126-million on capex at the Syama and Mako operations, as well as exploration, in 2025.
While the company expects to produce more cash flow in 2025 than previously forecasted, the cost guidance has been significantly impacted owing to the adoption of Mali’s 2023 Mining Code.
Resolute expects an additional $250/oz in terms of Syama’s all-in sustaining costs (AISC) as a result of the new regulations. AISC guidance has been set at between $1 700/oz and $1 800/oz from the operation in 2025.
Commenting on the company’s exploration activities, Eger says there was significant progress across the group during 2024. The growing mineral resource at Tomboronkoto, in Senegal, was particularly encouraging and this remains a key satellite deposit that has the potential of extending the life of Mako.
“We are also optimistic about the initial mineral resource estimate for the Mansala prospect in Guinea, with more than 340 000 oz of gold having been identified.”
Another country was also added to the company’s portfolio of assets with the start of drilling at the La Debo project, in Côte d’Ivoire. 