Resolute Mining (ASX:RSG) faced a challenging Q3 FY24, with gold production reaching 85,043 ounces — 6% below the previous quarter due to extreme rainfall at the Syama and Mako mines. Year-to-date revenue stood at $1.95bn, a decline from $2.21bn during the same period in 2023, reflecting broader challenges in the gold market.
Syama in Mali experienced record rainfall, which significantly disrupted oxide mining operations and increased costs. The all-in sustaining cost (AISC) at Syama rose to $1,533 per ounce this quarter, up from $1,402 per ounce in Q2 and from $1,260 per ounce during the same period last year. While oxide production was affected, the sulphide processing operations performed above expectations, partially offsetting the impact of the disruptions. CEO Terry Holohan noted, “Unprecedented rains affected mining operations, yet our focus on operational resilience allowed us to maintain steady progress in key areas.”
Mako in Senegal also encountered significant challenges, with severe weather causing a 15% grade drop, resulting in an AISC of $1,125 per ounce. Despite these difficulties, Mako’s revised operational plan aims to stabilise output as the mine approaches the end of its life.
Financially, Resolute’s cash and bullion position strengthened to $145.6m, up from $96.6m in Q2, bolstered by a $20m payment from the sale of the Ravenswood mine and the establishment of a $140m credit facility to support upcoming projects. Capital expenditure for the quarter reached $26.6m, with year-to-date spending at $71m, below annual guidance due to deferred investments.
Looking ahead, Resolute expects full-year production to be near the lower end of its 345,000–365,000 per ounce guidance, with AISC at the upper limit of $1,300–$1,400 per ounce.