Resolute Mining delivered steady gold production in Q2 2025 while progressing its strategic expansion with the Doropo acquisition and promising Bantaco resource estimates. The company remains on track for its 2025 guidance despite operational challenges.
- Q2 gold production steady at 75,962 ounces with improved cost efficiency
- Acquisition of Doropo and ABC projects in Côte d’Ivoire completed
- Initial Mineral Resource Estimate at Bantaco totals approximately 266,000 ounces
- Operating cash flow strengthened to $84.6 million in the quarter
- Safety metrics showed a slight increase in injury frequency
Steady Production and Cost Discipline
Resolute Mining Limited reported a stable gold output of 75,962 ounces in the June quarter, closely matching the previous quarter’s performance. This consistency was driven by strong results at the Mako mine in Senegal, which offset lower production at Syama in Mali due to supply chain disruptions. The company’s all-in sustaining costs (AISC) improved slightly to $1,668 per ounce, aligning well with group guidance and reflecting disciplined cost management across operations.
Operating cash flow before capital expenditure and working capital adjustments rose to $84.6 million, buoyed by higher realised gold prices averaging $3,261 per ounce, up from $2,840 in the prior quarter. Net cash increased to $110.4 million, despite a $25 million outlay for the acquisition of the Doropo and ABC projects in Côte d’Ivoire.
Strategic Expansion into Côte d’Ivoire
The acquisition of the Doropo and ABC projects marks a significant diversification for Resolute, extending its footprint into a well-regarded mining jurisdiction. Integration efforts have progressed smoothly, with Rob Cicchini appointed as Project Director for Doropo. The company is actively engaging with the Ivorian government, including high-level discussions led by CEO Chris Eger, to advance permitting and development plans. While the Exploitation Permit approval remains pending, the process is expected to conclude in the coming months, though the October 2025 presidential elections could introduce some timing uncertainty.
Resolute is also advancing the Definitive Feasibility Study (DFS) for Doropo, incorporating updated gold price assumptions and operational optimisations. An updated DFS is targeted for release in Q4 2025, which will underpin forthcoming financing discussions. The company is exploring a range of funding options to support project development, aiming to accelerate these talks once permitting milestones are achieved.
Exploration Success Bolsters Growth Pipeline
Exploration activities in Senegal have yielded promising results, particularly at the Bantaco project where an initial Mineral Resource Estimate (MRE) of approximately 266,000 ounces was announced. This resource comprises 179,000 ounces at Bantaco West and 87,000 ounces at Bantaco South, with mineralisation open at depth and along strike. The proximity of Bantaco to existing Mako infrastructure offers potential for a seamless production extension beyond the current stockpile processing phase, which is expected to continue until the end of 2027.
In Mali, exploration at Syama is focused on oxide targets to feed the oxide plant, with drilling confirming economic mineralisation at the Zekere prospects. However, underground production at Syama was hampered by explosive supply disruptions, impacting mined grades and output. The company anticipates a recovery in H2 2025 as supply stabilises and the Syama Sulphide Conversion Project advances toward commissioning.
Safety and Sustainability Initiatives
Safety remains a priority, though the Total Recordable Injury Frequency Rate (TRIFR) increased slightly to 2.02 in Q2 from 1.86 previously. Resolute is committed to learning from incidents and enhancing controls to exceed industry standards. On the environmental front, no significant incidents were reported, and the company is preparing for mandatory climate-related disclosures under Australian Sustainability Reporting Standards starting FY2025. Tailings management improvements are underway, including updated assessments and planning for new facilities at Mako.
Navigating Regional Challenges
Resolute continues constructive engagement with the Malian government on mining code implementation and is actively managing permit uncertainties in Guinea, where exploration permits were reportedly revoked but remain under discussion. The company’s diversified asset base across West Africa, combined with strong cash flow and disciplined capital expenditure, positions it well to navigate these geopolitical and operational challenges.
Bottom Line?
Resolute’s steady operational performance and strategic growth initiatives set the stage for a pivotal second half of 2025, with Doropo permitting and Bantaco resource development key to watch.
Questions in the middle?
- Will Doropo’s Exploitation Permit approval withstand potential delays from Côte d’Ivoire’s upcoming elections?
- How quickly can Syama’s underground production recover following explosive supply disruptions?
- What financing structure will Resolute adopt to fund Doropo’s development amid evolving market conditions?