Resolute Faces Rising Costs and Operational Hurdles Despite Strong 2025 Profit
Resolute Mining Limited reported a robust financial turnaround in 2025, posting a $126.7 million net profit driven by higher gold prices and cost efficiencies despite lower production volumes. The granting of the Doropo mining permit and strategic asset sales mark key milestones in its West African expansion.
- Net profit after tax of $126.7 million versus a $26 million loss in 2024
- Revenue rose 8% to $865.6 million on higher gold prices despite lower ounces sold
- EBITDA improved to $391.6 million supported by cost reductions at Syama and Mako mines
- Investment of $119 million in development projects including Syama Sulphide Conversion and Doropo acquisition
- Doropo Gold Project mining permit granted post-year-end, advancing growth strategy
Financial Turnaround Amid Challenging Production
Resolute Mining Limited has delivered a striking financial recovery for the year ended 31 December 2025, reporting a net profit after tax of $126.7 million compared to a loss of $26 million in 2024. This turnaround was underpinned by an 8% increase in revenue to $865.6 million, largely driven by a surge in the average realised gold price to $3,338 per ounce, up from $2,383 the previous year.
Despite this, gold production declined to 258,544 ounces from 335,708 ounces in 2024, reflecting operational challenges such as lower head grades at the Syama Gold Mine in Mali and the transition to stockpile processing at the Mako Gold Mine in Senegal. The company’s ability to offset lower volumes with higher prices and tighter cost control was key to its improved earnings before interest, tax, depreciation, and amortisation (EBITDA), which rose to $391.6 million.
Operational Highlights and Cost Management
At Syama, gold poured fell 18% to 176,341 ounces due to lower grades and supply chain disruptions affecting explosives in the latter half of the year. The all-in sustaining cost (AISC) at Syama increased 34% to $2,008 per ounce, mainly driven by higher royalty payments linked to the gold price and reduced production volumes.
Mako’s production of 100,895 ounces was within revised guidance but down from the prior year as open pit mining ceased mid-2025, with the plant focusing on stockpile processing. The AISC at Mako rose slightly to $1,270 per ounce, reflecting similar royalty impacts and the operational shift.
Strategic Investments and Growth Prospects
Resolute increased capital expenditure to $119 million, investing in the Syama Sulphide Conversion Project and acquiring the Doropo and ABC projects in Côte d’Ivoire. The Doropo acquisition is a significant step in Resolute’s ambition to become a leading multi-asset gold producer in West Africa.
Post-year-end, the company secured the mining permit for the Doropo Gold Project, valid for 14 years with extension options, reinforcing its growth strategy to boost annual gold production beyond 500,000 ounces by 2028. Additionally, Resolute completed the sale of its 31.45 million shares in Loncor Gold to Chengtun Mining Group, realising a $31.5 million fair value gain.
Robust Cash Position and Outlook
Operating cash flow nearly doubled to $226.6 million, supported by consistent operations and higher gold prices. Net cash increased to $209.1 million, with cash and equivalents at $62.6 million and bullion holdings valued at $134.6 million. The company maintained modest borrowings of $57.8 million, primarily overdrafts in Mali and Senegal.
No dividend was declared for 2025, reflecting a focus on reinvestment and balance sheet strength. The preliminary results remain subject to audit, with the final report expected in March 2026.
Bottom Line?
Resolute’s 2025 rebound sets the stage for ambitious growth, but operational challenges and cost pressures will test its 2026 momentum.
Questions in the middle?
- How will Resolute manage explosive supply chain issues at Syama in 2026 and beyond?
- What impact will the Doropo mining permit have on production timelines and capital allocation?
- How will the sale of Loncor Gold shares influence Resolute’s strategic focus and cash flow?
