Last checked at 28 Feb 2020 07:00
28 February 2020
Resolute Mining Limited
(Resolute or the Company)
Resolute adds to US$ gold hedge book
30,000 ounces forward sold at average price of US$1,670 per ounce
Resolute Mining Limited (Resolute or the Company) (ASX/LSE: RSG) advises that the Company has forward sold 30,000 ounces of gold at an average price of US$1,670 per ounce in scheduled monthly deliveries of 5,000 ounces between July 2021 and December 2021.
Resolute has taken advantage of strength in the gold price to extend the Company's US dollar denominated gold hedge position. This hedging secures price certainty for a portion of the revenues generated from the Syama Gold Mine in Mali and the Mako Gold Mine in Senegal. The additional hedging extends Resolute's existing US dollar forward gold sales program which prior to today's new hedges consisted of 140,000 ounces of gold forward sold at an average price of US$1,548 per ounce in scheduled monthly deliveries to June 2021.
Resolute's total gold hedge book as at 1 March 2020, including the new US dollar gold hedges, consists of 240,000 ounces in monthly deliveries out to December 2021 representing approximately 3% of Resolute's Ore Reserves.
Managing Director and CEO, Mr John Welborn, was pleased to continue Resolute's responsible hedging strategy:
"Resolute's hedging program has strong support from our syndicate banks as we progress finalisation of an expanded syndicated loan facility. Incremental expansion of our US dollar hedging position at gold price levels which are significantly above our budgeted gold price protects and supports Resolute's cash flows. We remain strongly leveraged to future upside in the gold price."
For further information, contact:
John Welborn Managing Director & CEO
| Jeremy Meynert General Manager - Business Development & Investor Relations
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About Resolute
Resolute is a successful, dividend paying gold miner with more than 30 years of experience as an explorer, developer and operator of gold mines in Australia and Africa which have produced more than 8 million ounces of gold. The Company trades on the Australian Securities Exchange (ASX) and the London Stock Exchange (LSE) under the ticker RSG.
Resolute has a Global Mineral Resource base of more than 19 million ounces of gold. The Company's flagship asset is the world class Syama Gold Mine in Mali which has the ability to produce 300,000 ounces of gold per annum from existing processing infrastructure. Resolute has commissioned the world's first automated underground mine at Syama which will deliver a low cost, large scale operation with a mine life beyond 2032. The Mako Gold Mine in Senegal is a high quality, low cost asset with average annual production of approximately 140,000 ounces of gold. A binding agreement has been signed to sell the Ravenswood Gold Mine in Queensland, Australia for up to A$300 million. A strategic review is currently underway of the Bibiani Gold Mine in Ghana.
Resolute's guidance for FY20 has been set at production of 500,000 ounces of gold at an AISC of US$980 per ounce. FY20 Guidance will be revised once the sale of Ravenswood has been finalised.
Contact Information
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Authorised by Mr John Welborn, Managing Director & CEO
ASX/LSE: RSG Capital Summary Fully Paid Ordinary Shares: 1,035,886,919 Current Share Price (ASX):A$1.14 as at 27 February 2020 Market Capitalisation: A$1.2 Billion FY20 Guidance: 500,000oz @ AISC US$980/oz | Board of Directors Mr Martin Botha Non-Executive ChairmanMr John Welborn Managing Director & CEO Ms Yasmin Broughton Non-Executive Director Mr Mark Potts Non-Executive Director Ms Sabina Shugg Non-Executive Director Mr Peter Sullivan Non-Executive Director | Contact John Welborn Managing Director & CEO Jeremy Meynert GM - BD & IRLevel 2, Australia Place | 15-17 William StPerth, Western Australia 6000T: +61 8 9261 6100 | F: +61 8 9322 7597E: contact@rml.com.au |