Resolute Mining reported Q2 2026 gold production of 45,192 ounces with steady operations, while Doropo construction progresses on schedule and the ABC Project's inferred resource grows to 3 million ounces.
- Q2 gold production of 45,192 oz at $2,484/oz AISC
- Doropo project construction on track and on budget
- ABC Project mineral resource expands to 3.0 Moz
- Syama Sulphide Conversion Project commissioning underway
- Strong balance sheet with $317 million net cash
Gold production dips as Syama faces operational headwinds
Resolute Mining Limited (ASX:RSG) delivered 45,192 ounces of gold in Q2 2026, down from 59,603 ounces in the previous quarter, reflecting challenges at its flagship Syama mine in Mali. The operation grappled with a planned roaster shutdown and slower mobilisation of equipment at the A21 open pit, which weighed on output. Despite these setbacks, the group’s all-in sustaining cost (AISC) rose to $2,484/oz, driven by lower production and elevated royalty payments linked to strong realised gold prices averaging $4,526/oz.
Syama processed 0.5 million tonnes of sulphide material comprising underground run of mine and stockpiles during the shutdown period, while oxide stockpiles and scats supplemented feed. The company expects production to trend towards the lower end of its full-year guidance of 195,000 to 210,000 ounces, assuming stable operating conditions and a successful ramp-up of the Syama Sulphide Conversion Project (SSCP) in H2 2026.
Doropo construction ramps up with robust financing secured
In Côte d’Ivoire, Resolute’s Doropo gold project advanced decisively from final investment decision to active construction. The quarter saw ground broken at the process plant site, with bulk earthworks progressing and 74 hectares cleared. More than 20 kilometres of access roads were established, and over 40 heavy vehicles mobilised. Key long-lead equipment contracts were awarded, including for crushing, milling, CIL tanks, and an oxygen plant.
The project remains on track and on budget for first gold production in the second half of 2028, with Q2 capital expenditure of $36.7 million aligning with full-year guidance of $170 to $190 million. Post-quarter financing secured $155 million from local banks, with an additional $105 million expected in Q3, providing sufficient liquidity alongside existing cash and operating cash flows to fund construction under current market conditions.
ABC Project resource expands to 3 million ounces with feasibility push underway
Resolute announced an expanded inferred mineral resource estimate (MRE) of 133 million tonnes grading 0.71 g/t gold for 3.0 million ounces at the ABC Project in Côte d’Ivoire. This update incorporates over 31,000 metres of drilling completed in H1 2026, with the majority of the resource within 250 metres of surface and deposits remaining open along strike and at depth.
The company plans a $15 to $25 million work programme over the next 12 to 18 months, focused on infill drilling, technical studies, environmental and social baseline work, metallurgical test work, and site infrastructure upgrades. The objective is to progress feasibility studies and submit a mining application by the end of 2027. Drilling intensity is set to increase, with rigs ramping from seven to over eleven in Q3 2026.
Mako operation steady; Life Extension Project advances
Mako in Senegal maintained strong performance, producing 15,311 ounces at an AISC of $1,538/oz, processing 626,309 tonnes of stockpiled material. The operation remains on track to meet its full-year production guidance of 55,000 to 65,000 ounces. Cost initiatives such as haul distance optimisation and alternative reagent sourcing aim to offset external pressures.
The Mako Life Extension Project (MLEP) progressed through technical studies, permitting, and community engagement. The Environmental and Social Impact Assessment (ESIA) for Tomboronkoto was fully validated, awaiting ministerial approval. Submission of the mining permit application and validation of Bantaco ESIA are anticipated in H2 and Q3 2026 respectively.
Financials underpin growth strategy with strong cash position
Resolute’s balance sheet remains robust, ending the quarter with net cash of $317.4 million, up slightly from $315.4 million in Q1, bolstered by $53.9 million received from the repayment of the Ravenswood Vendor Financing Promissory Note. Operating cash flow for Q2 was $77.4 million, supported by favourable gold prices despite reduced production.
Capital expenditure surged to $63.5 million in Q2, reflecting ramped-up development at Doropo and exploration activities across West Africa. The company maintains full-year capital guidance of $310 to $360 million, with Doropo capex weighted 75% to H2 2026.
Group production guidance remains at 250,000 to 275,000 ounces for 2026, with AISC guidance of $2,000 to $2,200 per ounce maintained but subject to upward pressure from elevated gold prices and fuel costs. The company notes that every $100/oz increase in gold price could add approximately $20/oz to AISC.
Bottom Line?
Resolute’s steady operational footing and strong financing position underpin its ambitious growth plans, but execution risks at Syama and cost pressures warrant close monitoring.
Questions in the middle?
- Can the Syama Sulphide Conversion Project ramp-up offset current operational challenges and restore production momentum?
- Will Doropo’s construction timeline and budget hold amid potential regional and supply chain uncertainties?
- How will elevated gold prices and rising fuel costs impact Resolute’s full-year cost guidance and profitability?