George Frangeskides, Chairman at ALBA, explains why the Pilbara Lithium option ‘was too good to miss’. Watch the video here.
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Resolute provided an updated Life of Mine for Syama in April 2021 with an improved production and cost profile over the 11-year mine life (7 years underground).
Exploration and mine design work last year culminated in increases to resources at both Tabakoroni and Syama. Near mine exploration (open pit) "remains a key focus at Syama and is expected to extend LOM production" and today's update adds further weight behind the decision to return to open pit mining of Syama North in late 2021
Excellent set of results today! Extending the oxide production at Syama and Tabakoroni to beyond 2023 and 2024 respectively will be massively beneficial, especially if near surface grades are higher than current resource modelling would suggest.
rns out now - not sure why it was not released at 7.00am as it was released on the asx last night (our time).
I have bought back in today.
They have sold Bibiani which will help reduce debt. Todays update about new drilling (not showing here?) looks promising for providing potential for further oxide deposits, both this and the reduced debt will both push back the need for a placing to get the Tabakoroni up and running. The drilling results indicate that the total reserves at Tabakoroni could also be increased at a future date.
Opposition to the French cutbacks in Mali also seem to be growing, I would think that the collapse of opposition to the Taliban in Afghanistan will also add focus to this.
From The Times -
Xavier Bertrand, frontrunner in the field of conservative contenders for next April’s presidential election, said Macron had made a “major error” in announcing the imminent end of France’s Operation Barkhane in Mali and surrounding countries.
It's not showing yet but i took 16,024 @ 24.9
I'm new to RSG but have been following the technical's here for a few months and finally decided to take a bite this morning. as the chart looks pretty good for a retace atm
Apologies, fourth paragraph should read:
With the sale of the Bibiani project for $90m and two thirds of that expected this quarter or next, net debt should reduce to around $150m by year end or possibly a little more depending on fees. The final instalment will likely fall due in the first half of the next financial year.
At the year end 2020 (31 December) net debt stood at $230.3m with cash and bullion of $106.6m and this had reduced to $219.8 million with cash and bullion of $88.8 million by 30 June.
Net debt has fallen slowly in the first half due to lower than expected production volumes, mainly down to power disruptions, extended periods of mill maintenance and lower grades and that has had a negative impact on AISC, in Q2 they averaged $1,319/oz.
We should be looking at 80-85koz production in each of the second half quarters at similar AISC (incl corporate overheads) and our hedges for approx 30% are at $1715/oz a good 9% higher than this time last year ($1576/oz).
With the sale of the Bibiani project for $90m and two thirds of that expected this quarter, net debt should reduce to around $180m or possibly a little more depending on fees. The other two instalments will likely fall due in the fourth quarter this year and then half way into the next financial year.
By the middle of 2022, when all payments have been made to Resolute, further early loan repayments made when appropriate, lower interest to pay and having benefitted from a further 12 months of production at these revised 340koz levels and at current gold prices, assuming AISC fall back to the $1275/oz range, net debt will have reduced to around $80-90m. Of course we are capable of producing 400koz and this year should have been producing closer to 350k-375koz but for the issues mentioned above.
The board need to demonstrate they can achieve revised guidance over the next six months. If operations are running smoothly as we enter the new financial year I don't see why margins won't improve and net debt come down faster.
Resolute's issues have been one long, ongoing headache for some time but there is a clear route to success here with earning boosts from their deleveraging of secondary assets.
Last point should be to watch the huge short position which was 10%+ at one point mid June 2021 now down to 6% and expected to unwind further once the price of gold catches a new wind.
https://www.shortman.com.au/stock?q=RSG
Sale of Bibiani Gold Mine for $90 million in cash
· Resolute has entered into an agreement to sell the Bibiani Gold Mine in Ghana to Asante Gold Corporation.
· Cash consideration paid in $30 million deposit (already received by Resolute to be applied upon completion) and further
$30 million on or before 6 months from completion; and $30 million on or before 12 months from completion.
Importantly "The agreement has received Ministerial Consent, having been approved by the Ghanaian Honourable Minister of Lands and Natural Resources"
Completion expected 10 days from now, mark the 19th August in your books (assuming it's working days)
Asante are already well established in Ghana and have a strong track record of community involvement schemes as well as being a popular company among Ghanaian nationals, soon to be listed on the Ghana Stock Exchange. So this is a good outcome for the Ghanaian authorities and people.
The impression I got back in April was that Ghanaian assets were going to stay with tried and trusted partners but in fact it looks like it the licence restoration was perhaps engineered to bring Asanta on board as the only viable option.
Resolute and Asante are committed to ensuring an orderly transition of ownership at Bibiani. Asante is dedicated to injecting the necessary capital to achieve the rapid restart of Bibiani, which is not expected to result in any immediate changes to employment or contract relationships.
The Ghanaian Honourable Minister for Lands and Natural Resources, Hon. Samuel A. Jinapor, MP (the Minister), commented: "I commend the recent approach of Resolute and Asante in their dealings with the Ministry for Lands and Natural Resources and am pleased to support the transition of ownership of Bibiani to Asante."
Note Stuart Gale's comment: "Resolute is .. particularly proud to have the opportunity to transfer ownership in Bibiani to a highly regarded team with strong ties to Ghana."
But this is an optimum outcome for Resolute, soon to benefit from a $90 million gross injection over the coming year which reduces the risk of loan covenant breach to nil and firms up the balance sheet.
Asset sold for 90m should increase the mkt cap as it fell on news originally
Sylvania Platinum (AIM: SLP) is pleased to announce the appointment of Mr. Adrian Reynolds as Independent Non-executive Director, with effect from 1 August 2021.
One of our directors joining the board of Cash rich SLP eh?and here we are with a little old Gold mine to sell or develop?
Average price $1,800 oz
Revenue x 315,000 market cap is lower than total revenue this is a simple buy at these prices
Wed, 9th Jun 2021 09:17
RNS Number : 3081B
Resolute Mining Limited
US$20 million early debt repayment
Resolute Mining Limited (Resolute or the Company) (ASX/LSE:RSG) is pleased to advise that it has repaid US$20 million in advance of its first scheduled debt repayment.
The voluntary early repayment reduces the Company's Revolving Credit Facility (the RCF) balance to US$130 million and lowers borrowing costs. The RCF also provides Resolute with the flexibility to redraw funds to the US$150 million facility threshold, at the Company's discretion, up until the maturity date which is currently March 2023.
A summary of the debt maturity balances following the US$20 million repayment is set out in the graph provided in the full version of the announcement at www.rml.com.au.
Resolute's first scheduled debt repayment under the Company's Term Loan facility is in September 2021. The Company's intent is to repay all Term Loan obligations through the generation of operating cashflows. Additional free cashflow may also be applied to further reduce the RCF as options to extend the maturity of this facility are assessed in accordance with the lending agreement.
Resolute's Chief Executive Officer, Mr Stuart Gale, commented on the accelerated debt repayment: "This early repayment strengthens Resolute's balance sheet and reduces ongoing borrowing costs. Our teams remain focussed on improving operational performance and with that cash generation. The flexibility of the RCF then provides us with the option to continue repaying debt ahead of maturities with operating cashflow and proceeds from potential non-core asset sales."
Cash and bullion balances were US$106.0 million at the last quarterly update (31 March 2021)
https://clients3.weblink.com.au/pdf/RSG/02383046.pdf
Will this ever pop to the 40s
Gold $1900 all the way to $3000
12 months time this will be over £
Late late tick up to 36p near the end!
This one is highly geared and has been incredibly volatile in times of wild commodity swings. There's also a large shorting syndicate on the Aussie exchange or at least there was up until recently. They may have closed positions now.
Doesn't take a lot to move this. 13% up today and that is on top of last weeks rise. Certainly seems that someone is loading up big time. News soon?
I'm sure there will be some clause they don't loose 10m what management would be that daft to loose 10m on things out of their control. Ie having the licence revoked from the authority
Someone yesterday at 8:11 put a wee £1m trade. Obviously just sofa change. And then today £387k buy.
Do you get the feeling that something is about to be announced? Some very big trades been going through.
Well today's announcement confirms the termination of Chifeng's interest. Still there is now the possibility of Resolute offering equity in either the group or more likely the Bibiani asset only for investment to further the development there. In some ways this could be a positive turn of events if Resolute are able to attract funding and garner the support of the government, which it seems to have now.
I doubt this is the end of dealings with Chifeng or connected parties. It's just the beginning of negotiations under new state policy of tightened restrictions concerning asset sales. Thankfully common sense prevails and no long term damage has been inflicted on the reputation of the Ghanaian mining industry. The recent land and mining reforms might turn out to be a blessing in the long run if Resolute are one of a few trusted miners permitted to operate within the country.
There was a $10M break fee for the deal so I guess RSG will have pay this out if they cannot sell to Chifeng.