Resolute Mining Share Discussion Threads

[arja] 18/9/2019 15:13

yes, mickey mouse market in RSG here but that can mean trading opps as happenesd today
when it opened well below aussie close . I closed out at 190.5 evereg after buying at 185 but might regret tomorrow as I expect it to rise further in oz on thursday

[rolo7] 03/9/2019 23:01

Think you are right not enough liquidity

[typo56] 01/9/2019 19:30

FTSE 250
At the moment it doesn't look like there's been sufficient liquidity to qualify, but I may not have adequate trade data.

[someuwin] 30/8/2019 07:54

RNS Number : 6753K

Resolute Mining Limited

30 August 2019

Half Year Profit Result

171% increase in Half Year EBITDA to A$78m

Sales Revenue up 33% to A$324m generates Gross Profit of A$69m

Half year gold production of 176,237oz at AISC of US$828/oz

Transitional period to larger production base of long life, low cost mines

Highlights for the six months to 30 June 2019
-- Revenue from gold and silver sales of A$324m (six months to 30 June 2018 (H1 FY18): A$243m)
-- Earnings before interest, tax, depreciation and amortisation of A$78m (H1 FY18: A$29m)
-- Gross profit from operations of A$69m (H1 FY18: A$39m)
-- Net profit after tax of A$39m (H1 FY18: A$39m)
-- Earnings per share of 4.71 Australian cents (H1 FY18: 4.40 Australian cents)
-- Net operating cash flow of A$95m (H1 FY18: A$53m)
-- Significant investment in growth with investing cash flows of A$151m (H1 FY18: A$176m)
-- Gold production of 176,237oz (H1 FY18: 141,437oz)
-- AISC of A$1,173/oz; US$828/oz (H1 FY18: A$1,317/oz; US$1,017/oz)
-- Gold sales of 176,294oz (H1 FY18: 140,901oz)
-- Average gold price received of A$1,800/oz; US$1,275/oz (H1 FY18: A$1,723/oz; US$1,324/oz)
-- Cash, bullion and listed investments of A$56m (as at 31 December 2018: A$117m)
-- Borrowings net of in-country receivables of A$198m (as at 31 December 2018: A$173m)
-- Syama Underground Mine achieved commercial production rates

-- Ravenswood Expansion Project optimisation study progressed; potential to deliver 200,000oz annually
-- Major gold inventory upgrades at Tabakoroni and Ravenswood
-- Dual-listing on London Stock Exchange completed with first trading in June 2019

-- Value accretive, low cost, high quality production added to portfolio with acquisition of Toro Gold Limited
-- Upgraded FY19 guidance (31 December) of 400,000oz at an AISC of US$960/oz

Resolute Mining Limited (Resolute or the Company) (ASX/LSE: RSG) is pleased to report a half year net profit after tax of A$39m for the six month period ended 30 June 2019 (H1 FY19). Resolute produced 176,237 ounces (oz) at an All-In Sustaining Cost (AISC) of US$828/oz (A$1,173/oz) with total gold sales of 176,294oz at an average realised gold price of US$1,275/oz (A$1,800/oz). Revenue for the period was up 33% to A$324m, generating a gross profit from operations of A$69m, up 77% on the previous corresponding period (H1 FY18). As part of the Company's listing on the London Stock Exchange and to synchronise the consolidation of its African subsidiary companies' accounts, Resolute changed its financial year end to 31 December. Accordingly, references to H1 FY18 are for the six months to 30 June 2018.

Resolute achieved a 171% increase in earnings before interest, tax, depreciation, amortisation and fair value adjustments (EBITDA) to A$78m.

Cash flow from operating activities was A$95m, up 79% on the previous corresponding period. Resolute continued to make significant investments in growth with development, property, plant and equipment investment expenditure totalling A$150m. The Syama Underground Mine achieved commercial production rates in June 2019 and is expected to reach full production by the end of the year.

A total investment of A$6.5m in exploration and evaluation delivered excellent results with a maiden high grade underground Mineral Resource being reported at Tabakoroni of 850,000oz grading 5.1 grams per tonne of gold (See ASX announcement dated 29 April 2019). Drilling activities undertaken at the Ravenswood Gold Mine (Ravenswood) as part of ongoing work on the Ravenswood Expansion Project resulted in an increase in Ore Reserves at Ravenswood of 1 million ounces (Moz) to 2.7Moz of gold, representing growth of 58%. Mineral Resources at Ravenswood increased by 24% to 5.9Moz of gold (See ASX announcement dated 22 July 2019).

As at 30 June 2019, the Company's cash, bullion and investments totalled A$56m while its borrowings (net of in-country receivables) were A$198m.

Resolute delivered on key strategic objectives during the half-year, listing on the Main Market of the London Stock Exchange and pursuing value accretive growth through the addition of the low cost, high quality Mako Gold Mine, located in Senegal, to the Company's portfolio as part of the acquisition of Toro Gold Limited (Toro Gold) (see ASX Announcement dated 31 July 2019). Following the acquisition of Toro Gold, Resolute upgraded FY19 guidance to 400,000oz at an AISC of US$960/oz.

Safe work practices are at the core of Resolute's business and the Company continues to focus on delivering positive safety outcomes as part of its operations. Resolute's safety performance strengthened relative to the previous corresponding period with a material reduction in the Total Recordable Injury Frequency Rate to 2.77 (3.23 at 30 June 2018). This was driven by a company-wide focus on effective management of sub-contractors and the active management of key operational risks which will continue to be key focus areas in the second half of the year.

Managing Director and CEO, Mr John Welborn, was pleased with the Company's strong operating and financial performance:

"Delivering 176,237 ounces at an All-In Sustaining Cost of US$828 per ounce generated revenues of A$324 million and EBITDA of A$78 million which is an exceptional result during a period of significant investment in our business.

"The ramp up of the Syama Underground Mine to full production will further increase Resolute's production base, margins, and cash flows. The acquisition of Toro Gold is a further boost to the profitability and cash generating capacity of our business.

"Our investment in exploration enabled us to deliver material growth in our gold inventory. At Tabakoroni, we now have a Mineral Resource comprising over one million ounces of gold at a grade above five grams per tonne which will underpin a potential underground mine, while at Ravenswood we added one million ounces of gold in Ore Reserves. Mineral Resources at Ravenswood are now almost six million ounces of gold with our ongoing study work focused on delivering a project which can produce 200,000 ounces annually over a 15 year mine life.

"We are delighted to have delivered as promised on important strategic goals for 2019 with our listing on the London Stock Exchange, the ramp-up of Syama, and the acquisition of Toro Gold. Gold production for 2019 is now forecast to be 400,000 ounces at an All-In Sustaining Cost of US$960 per ounce with further growth and upside to come in 2020."

[sammu] 26/8/2019 17:54

I hope that modest short didn't happen as biggest riser in Oz. As suggested it maybe was a bit oversold.

[someuwin] 26/8/2019 06:56

Up over 10% on ASX

ASX:RSG

[arja] 23/8/2019 13:08

surprising that UK punters think it wil rise in OZ on monday and bid price here is 5.5 cents above aussie close ! tempted to do a modest short ! ( smile )

[arja] 23/8/2019 13:05

and news from Mali is a negative for RSG . I doubt the small rise in gold price will
trigger a better day in OZ on monday

[someuwin] 23/8/2019 12:37

Fallen back too far imo. Will move up strongly sooner or later.

[someuwin] 22/8/2019 08:18

Good piece about RSG in today's Shares Magazine.

[sammu] 19/8/2019 17:16

Well done. That looks better. Sell off in gold shares seems a bit harsh with gold possibly staying around $1500.

[someuwin] 16/8/2019 12:26

I got ADVFN to remove the old data that was distorting the long term chart.

Now the top right chart better shows the rise so far from listing on LSE in June.

[someuwin] 15/8/2019 10:00

Resolute Mining gains new substantial holder in UBS

Resolute Mining Limited (ASX:RSG) has a new substantial shareholder in UBS Group AG and its related entities with a 5.05% stake.

UBS now holds about 44.89 million Resolute shares...

Maximising gold sales revenue

Resolute continues to ride high on the gold wave with its US Dollar gold hedge book recently strengthened through the forward sale of a further 30,000 ounces.

The company forward sold the gold at an average price of US$1,519 per ounce in scheduled monthly deliveries of 5,000 ounces between January 2020 and June 2020.

This comes on the back of the acquisition of Toro Gold and an upward gold price.

These have seen the mid-tier gold miner’s share price rise 68% over the last six months.

[arja] 14/8/2019 21:19

maybe but US markets crashing will not help . But UK punters seem to be expecting a 8 or 9 cents rise in LEAD market

[someuwin] 14/8/2019 12:15

Gold rising again. Don't miss the boat here.

[someuwin] 13/8/2019 10:27

Do the maths...

490,000oz at AISC of US$920/oz (Current gold price well over $1500)

[arja] 12/8/2019 15:20

actually I disagree as I have seen this sort of thing in the past but will be happy
if I am wrong . Tempted to buy at 109 today with gold aboive $1500 again but too risky as obne never knows if aussie punters will keeop it moving down and OZ is lead market . bearish mood in markets will not help and even UK gold stocks down today

[someuwin] 08/8/2019 09:14

The UK shares have only been listed (on the main market - not AIM) for a couple of months.

I expect volume to pick up as awareness spreads. (And as gold continues to trend upwards)

[arja] 08/8/2019 09:06

but in UK this stock is so thinly traded and too many market makers . It is like an AIM stock or is it ? trading at a bit above oz close and RSG had a bad day as gold
price went above $1500 .

[someuwin] 08/8/2019 07:44

rolo7 - I'm not aware of any reason dual listed stocks can't go in the ftse 250 index. I guess we'll find out at the next review, which I believe is in September.

[someuwin] 08/8/2019 07:15

8 August 2019

Resolute Mining Limited

(Resolute or the Company)

Resolute strengthens US$ gold hedge book

30,000 ounces forward sold at average of US$1,519/oz

Resolute Mining Limited (Resolute or the Company) (ASX/LSE: RSG) advises that the Company has forward sold an additional 30,000 ounces of gold at an average price of US$1,519 per ounce in scheduled monthly deliveries of 5,000 ounces between January 2020 and June 2020.

Resolute has taken advantage of recent gold price strength to extend the Company's US dollar denominated gold hedge position. The objective of this hedging is to secure price certainty for a portion of the US dollar revenues generated from Resolute's African gold mines: the Syama Gold Mine in Mali and the Mako Gold Mine in Senegal.

The additional US dollar hedging extends Resolute's existing US dollar forward gold sales program which consists of 50,000 ounces of gold forward sold at an average price of US$1,337 per ounce in monthly deliveries scheduled to December 2019 (see ASX Announcement dated 6 June 2019).

Resolute's total gold hedge book as at 8 August 2019, including today's new US dollar gold hedges, consists of 190,000 ounces in monthly deliveries out to June 2020 representing less than 3% of Resolute's Ore Reserves*.

Managing Director and CEO, Mr John Welborn, was pleased to continue Resolute's success in maximising gold sales revenue through responsible hedging strategies:

"We continue to actively manage our gold sales and undertake near term hedging to take advantage of gold price volatility, maximise revenues, and protect the Company's balance sheet. Incremental expansion of our US dollar hedging position at current levels which are significantly above our budgeted gold price, protects and supports Resolute's revenue and cash flow. With long mine lives, large gold inventories, and an industry leading production growth profile, Resolute remains strongly leveraged to further upside in gold prices."