Resolute Mining’s half year profit more than doubled to $162.6 million, buoyed by soaring gold prices that offset a 31% drop in production. The company advances its Doropo project with key approvals and secures robust local financing.
- Net profit after tax rises 129% to $162.6 million
- Gold sales fall 15% to 123,951 ounces but average price jumps 53%
- All-In Sustaining Cost climbs 38% to $2,327 per ounce
- Doropo Gold Project moves to construction with $155 million local financing secured
- Net cash and bullion position nearly triples to $317.4 million
Profit Surge Driven by Gold Price Rally
Resolute Mining Limited (ASX:RSG) posted a striking financial turnaround for the half year ended 30 June 2026, with net profit after tax soaring 129% to $162.6 million. This leap was powered by a 53% jump in the average realised gold price to $4,712 per ounce, which more than compensated for a 31% decline in gold production to 104,795 ounces.
The company’s revenue climbed 31% to $584.7 million, while EBITDA rose 42% to $323.9 million, underscoring the leverage of higher gold prices despite operational headwinds. Operating cash flow more than doubled to $277.6 million, bolstering Resolute’s financial flexibility.
Production Pressures and Rising Costs
Production challenges weighed on output, particularly at the Syama Gold Mine in Mali, where a planned roaster shutdown, explosive supply constraints, and slower mobilisation at the A21 open pit curtailed underground mining rates and head grades. Mako in Senegal transitioned to stockpile processing following the end of open pit mining, reducing gold volumes further.
The All-In Sustaining Cost (AISC) surged 38% to $2,327 per ounce, driven by lower production volumes, elevated royalties linked to higher gold prices, and increased operating expenses at Syama. These cost pressures present a notable contrast to the prior year’s AISC of $1,688 per ounce.
Robust Balance Sheet and Cash Position
Resolute’s balance sheet strengthened significantly, with net cash and bullion rising 189% to $317.4 million. Cash and bullion holdings totalled $332.7 million, while drawn overdrafts and equipment financing remained modest at $15.2 million. The company received $53.9 million from the repayment of the Ravenswood Vendor Financing Promissory Note and $31.9 million from the sale of its stake in Loncor Gold.
Capital expenditure, including exploration, nearly doubled to $96.9 million, reflecting ongoing investments in growth projects and operational improvements. The company remains on track with full-year capital guidance of $310-360 million.
Doropo Project Advances with Local Financing
Resolute marked a major milestone at its Doropo Gold Project in Côte d’Ivoire, securing all key approvals including the mining permit and final investment decision, propelling the project into active construction. Early works ramped up with $41 million of capital spent in H1 2026, covering infrastructure, site preparation, and procurement of long-lead equipment.
Significantly, Resolute secured $155 million in local bank financing during July from Bank of Africa, AFG, NSIA Banque, and Bridge Bank, with an additional $105 million expected by the end of Q3 2026. These facilities come with minimal security and no financial covenants, providing a strong funding base for the project’s development through to first gold targeted in H2 2028. This financing progress complements the company’s existing cash reserves and expected operating cash flows, providing a clear pathway to project completion under current market conditions.
Resource Growth and Strategic Partnerships
Resolute also expanded its resource base at the ABC Project in Côte d’Ivoire, announcing an inferred Mineral Resource Estimate of 3.0 million ounces at 0.71 g/t gold. This update follows extensive drilling and supports a $15-25 million work program aimed at feasibility studies and permitting by end 2027.
In Guinea, the company signed a Memorandum of Understanding with state-owned Nimba Mining Company to explore joint development opportunities, with ongoing government discussions advancing incorporation and licence applications.
Safety and Environmental Stewardship
On the ESG front, Resolute reported a Total Recordable Injury Frequency Rate (TRIFR) of 0.59 for H1 2026, a marked improvement from 1.87 in 2025, reflecting enhanced safety protocols. No significant environmental incidents or community grievances were recorded. The company continues to advance environmental and social impact assessments at key projects, including the Mako Life Extension Project and the Syama Tailings Storage Facility feasibility study.
Bottom Line?
Resolute’s profit surge on higher gold prices masks operational challenges and rising costs, while Doropo’s financing and construction progress set the stage for future growth.
Questions in the middle?
- Can Resolute sustainably reduce AISC amid rising royalties and operational constraints?
- How will Doropo’s local financing impact project timelines and capital structure?
- What risks remain in regulatory negotiations with the Malian government affecting Syama?