Resolute Mining Surpasses 340koz Gold in 2024 Despite Rising Costs

Strong 2024 Performance Amid Operational Challenges

Resolute Mining Limited closed out 2024 with a commendable operational and financial performance, producing 340,000 ounces of gold at an all-in sustaining cost (AISC) of $1,476 per ounce. This output slightly exceeded guidance and was supported by robust cash flow generation of approximately $250 million and an EBITDA of $310 million. The company’s net cash position stood at $66.3 million at year-end, bolstered by liquidity exceeding $100 million, positioning Resolute well for future investments.

Operationally, the Syama mine in Mali outperformed expectations, delivering 216,000 ounces, driven by a 6% increase in milled tonnage at the sulphide operation and strong mill availability improvements. However, the oxide operation saw a 12% decline in production due to lower head grades, partially offset by higher grades accessed post-rainy season. Meanwhile, the Mako mine in Côte d’Ivoire produced 124,000 ounces but fell short of guidance due to lower grades and heavy rains impacting the second half of the year.

Navigating Regulatory Headwinds and Cost Pressures

Resolute’s 2024 results were achieved despite the introduction of a new mining code in Mali, which is expected to increase AISC by approximately $250 per ounce. The company settled outstanding claims with the Malian government, paying $160 million, and signed a protocol to rebuild relations and secure VAT refunds, providing a foundation for operational stability. This regulatory environment has prompted Resolute to revise its 2025 guidance, anticipating production between 275,000 and 300,000 ounces at a higher AISC range of $1,650 to $1,750 per ounce.

The Syama Sulphide Conversion Project (SSCP) remains a critical growth initiative, with $31.9 million invested in 2024. The project aims to increase sulphide processing capacity from 2.4 million tonnes per annum to 4.0 million tonnes, extending the mine’s life as oxide resources deplete. Construction milestones include completion of key procurement, civil works, and installation of crushers, ball mills, and flotation cells, with no lost-time injuries reported over 453,000 person-hours worked.

Exploration and Growth Prospects Across West Africa

Exploration remains a strategic priority, with $20 million spent in 2024, exceeding guidance due to accelerated drilling at the Tomboronkoto and Bantaco projects. Notably, Resolute announced its maiden mineral resource estimate in Guinea at the Mansala project, with an inferred resource of 343,000 ounces of gold. In Côte d’Ivoire, the La Debo joint venture holds a historic inferred resource of 400,000 ounces, while the Tomboronkoto satellite deposit near Mako has expanded to a resource of 571,000 ounces, predominantly in the indicated category.

Looking ahead, Resolute plans to continue resource definition drilling in 2025, with updates expected for Bantaco and La Debo later in the year. Capital expenditure for 2025 is forecast between $109 million and $126 million, including $30 million allocated to the SSCP. The company anticipates steady production from Syama and a tapering profile at Mako as open pit mining ceases mid-year and stockpile processing begins.

Financial Strength and Market Position

Resolute’s financial discipline is evident in its ability to generate strong free cash flow while maintaining a solid balance sheet. The company’s valuation metrics remain compelling, supported by healthy cash flow yields and attractive enterprise value multiples. CEO Chris Eger highlighted the company’s commitment to organic growth and opportunistic M&A, underpinned by a portfolio of high-quality assets across four West African jurisdictions.

Despite the cost pressures from regulatory changes, Resolute’s diversified asset base and exploration pipeline provide a platform for sustainable growth. The company’s focus on operational efficiency, project delivery, and stakeholder engagement in Mali signals a cautious but optimistic outlook for the medium term.