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| Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
|---|---|---|---|---|---|
| Resolute Mining Limited | LSE:RSG | London | Ordinary Share | AU000000RSG6 | ORD NPV (DI) |
| Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
|---|---|---|---|---|---|---|---|---|---|---|
| -1.20 | -3.68% | 31.40 | 31.00 | 31.60 | 31.60 | 31.40 | 31.60 | 225,197 | 09:15:30 |
| Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
|---|---|---|---|---|---|
| Gold Ores | 631.07M | 65.58M | 0.0308 | 20.45 | 694.07M |
From Jul 2022 to Jul 2024
TIDMRSG
RNS Number : 9693Q
Resolute Mining Limited
24 February 2023
Appendix 4E
Preliminary Final Report
For the year ended 31 December 2022
24 February 2023
Reporting Period
The reporting period is the year ended 31 December 2022 with the corresponding reporting period being for the year ended 31 December 2021. Unless otherwise stated, all dollar figures are United States dollars ($).
Results for Announcement to the Market
Hot Features
Premium
12 months ended 12 months ended
31 December 2022 31 December 2021
$'000 $'000
Revenue from ordinary activities Up 19% to 651,129 549,242
Loss for the period Down 91% to (34,665) (367,471)
Loss after tax attributable to members Down 89% to (34,083) (319,203)
Dividends Amount per security Franked amount per security
Final dividend (per share) N/A N/A
------------------------- ----------------------------------------
Record date for determining entitlements to the N/A N/A
final dividend
------------------------- ----------------------------------------
Payment date for the final dividend N/A N/A
------------------------- ----------------------------------------
Franking 0% franked
-------------------------------------------------------------------
12 months ended 12 months ended
31 December 2022 31 December 2021
$'000 $'000
Net tangible assets backing (per share)(1) 0.22 0.38
(1. Net tangible assets excludes right of use assets from the reported net assets in the statement of financial position.)
This Appendix 4E - Preliminary final report has not been subject to audit and there is no audit report provided. This report should be read in conjunction with the Financial Report for the period ended 31 December 2021. The Financial Report for the period ended 31 December 2022 is currently being audited by Ernst & Young and will be finalised for lodgement with ASX in March 2023.
2022 Financial and operational overview
In 2022, a total of 353,609 ounces (oz) of gold were produced (poured) at an All-In Sustaining Cost (AISC) of $1,498/oz with total gold sales of 357,447oz at an average realised price of $1,819/oz.
Further details by operation are provided below.
Financial Performance
The Group's underlying net profit after tax (before abnormal items) was $20.3 million, with a reported net loss after tax of $34.7 million. The financial performance of Resolute for the year ended 31 December 2022 is summarised below:
Profit and Loss Analysis(1) 2022 2021
($'000s) Group Group
----------------------------------------------------------- ---------- ----------
Revenue 651,129 549,242
----------------------------------------------------------- ---------- ----------
Cost of sales excluding depreciation and amortisation (411,482) (324,984)
Royalties and other operating expenses (62,016) (59,066)
Administration and other corporate expenses (14,850) (16,809)
Exploration and business development expenditure (14,615) (18,484)
---------- ----------
EBITDA 148,166 129,899
----------------------------------------------------------- ---------- ----------
Depreciation and amortisation (85,894) (120,993)
Net interest and finance costs (15,273) (11,741)
Inventories NRV movements and obsolete consumables (36,077) (44,258)
Fair value movements and unrealised treasury transactions (13,345) (27,697)
Other 1,767 (3,481)
Impairment expense - (227,464)
Gain on disposal - 2,707
Indirect tax expense (13,449) (24,760)
Net loss before tax (14,105) (327,789)
----------------------------------------------------------- ---------- ----------
Income tax expense (20,560) (39,682)
Reported net loss after tax (34,665) (367,471)
----------------------------------------------------------- ---------- ----------
Abnormal items(2) :
+ Disputed Senegalese tax expense 23,926 7,132
+ Historical tax adjustments 14,809 39,334
+ Impairment of obsolete consumables 16,249 -
+ Impairment expense - 227,464
Underlying net profit/(loss) after tax(2) 20,319 (93,541)
=========================================================== ========== ==========
(1. Amounts presented above are aggregate balances of certain line items presented in the Consolidated Statement of Comprehensive Income.)
(2. This financial performance indicator is a non-IFRS measure. It is used internally by management to assess the performance of the business)
(and is therefore considered relevant to readers of this document.)
Group EBITDA of $148.2 million 2022 was a 14% improvement on the comparative period reflecting:
-- Higher revenue of $651.1 million from gold sales of 357,447oz (up 13%) at an average realised price of $1,819/oz (up 5%). The higher ounces sold reflects increased gold production (up 19%) due to:
o improved Sulphide processing performance with gold recovered up 4% (gold poured up 19%);
o higher gold recovered from both Syama Oxide (up 8%) and Mako (up 2%); and
o significant drawdown from gold in circuit of 21,752oz (2021: 3,084oz).
-- Higher cost of sales due to significant increases in fuel and consumables prices as well as the impact of non-cash adjustments for bullion and gold in circuit (as a result of the continued drawdown of material).
-- Lower exploration and business development expenditure as a result of prior year transaction costs associated with divestments (sale of Bibiani and Cote D'Ivoire exploration assets).
The following abnormal items have been added back to the reported net loss in arriving at the underlying net profit of $20.3 million for the year ended 31 December 2022:
-- Disputed Senegalese tax expense ($23.9m), relates to an ongoing dispute with the Senegalese tax authorities regarding PMC's tax exoneration status;
-- Historical tax adjustments ($14.8m), included within this amount is $3.0m expected to be cash settled, with the remainder expected to be settled with VAT and other tax credits;
-- Provision for obsolete consumables ($16.2m), with $2.3m pertaining to Mako and the remainder to Syama.
Financial Position
Net debt decreased by $197.2 million to $31.6 million at 31 December 2022 (31 December 2021:
$228.8 million). Total borrowings at 31 December 2022 were $125.6 million comprising $80.0 million drawn on the Term Loan Facility and RCF, and overdraft facilities in Mali and Senegal of $45.6 million. Available liquidity of $189.0 million includes cash and bullion of $94.0 million and $95.0 million of undrawn RCF. As at the date of this release, the RCF has been fully repaid with $100 million available to be redrawn.
Resolute continued to invest in the business in 2022 with spending on development, property, plant, and equipment totalling $63.0 million (2021: $56.9 million) including outlays for tailings facilities across both sites, capitalised stripping costs and project capital at Syama.
Syama Gold Mine, Mali
2022 production from the Syama Sulphide circuit was 161,479oz at an AISC of $1,410/oz. A 19% increase in production at a steady AISC compared to the prior year ($1,406/oz). Ore mined increased from 2.2Mt to 2.3Mt while the roaster recorded its highest ever throughput, processing 175.2kt. The Syama sulphide operation is expected to continue to benefit from the successful planned maintenance shutdown which was completed in early April 2022.
Production from the Syama Oxide operations was 62,165oz at an AISC of $1,801/oz. The oxide operations continued lower grade mining at several satellite pits. Gold poured for the year increased 9%, with momentum picking up in the second half and the highest gold production occurring in the December quarter.
Mako Gold Mine, Senegal
2022 production from Mako was 129,425oz at an AISC of $1,318/oz. Tonnes processed steadily increased over the year reflecting increased plant uptime and modifications to the SAG Mill configuration. The increase in AISC reflected a higher volume of material mined, which impacted mining costs and continued pressure on consumables amid industry wide inflationary pressures.
Consolidated Statement of Comprehensive Income
for the year ended 31 December 2022
$'000 Note 2022 2021
================================================ ============== ============ ===========
Revenue from contracts with customers for
gold and silver sales 1 651,129 549,242
Costs of production relating to gold sales 1 (411,482) (324,984)
================================================ ============== ============ ===========
Gross profit before depreciation, amortisation and
other operating costs 239,647 224,258
================================================================ ============ ===========
Depreciation and amortisation of mine assets 1 (83,706) (118,621)
Other operating costs relating to gold sales 1 (62,016) (59,066)
================================================ ============== ============ ===========
Gross profit from operations 93,925 46,571
================================================================ ============ ===========
Interest income 1 5,513 5,141
Other income 1 4,549 3,248
Exploration and business development 1 (14,615) (18,484)
Impairment of exploration and evaluation assets 1 - (5,068)
Impairment of mine properties and property,
plant and equipment 1 - (222,396)
Administration and other corporate expenses 1 (14,393) (15,687)
Share based payments expense 1 (457) (1,122)
Treasury - realised losses 1 (1,477) (185)
Inventories net realisable value movements
and obsolete consumables 1 (36,077) (44,258)
Fair value movements and unrealised treasury
transactions 1 (13,345) (27,697)
Share of associates' losses 1 (1,305) (3,838)
Depreciation of non-mine site assets 1 (2,188) (2,372)
Finance costs 1 (20,786) (16,882)
Indirect tax expense 1 (13,449) (24,760)
================================================ ============== ============ ===========
Profit / (loss) before tax from operations (14,105) (327,789)
================================================================ ============ ===========
Tax expense 1 (20,560) (39,682)
================================================ ============== ============ ===========
Loss for the year from operations (34,665) (367,471)
================================================================ ============ ===========
(Loss)/gain attributable to:
Members of the parent (34,083) (319,203)
Non-controlling interest (582) (48,268)
================================================ ============== ============ ===========
(34,665) (367,471)
================================================================ ============ ===========
Consolidated Statement of Comprehensive Income (continued)
for the year ended 31 December 2022
$'000 Note 2022 2021
=================================================== ===== ============= ==============
Loss for the year (brought forward) (34,665) (367,471)
========================================================== ============= ==============
Other comprehensive income/(loss)
Items that may be reclassified
subsequently to profit or loss
Exchange differences on translation
of foreign operations:
- Members of the parent (17,298) (16,106)
Items that may not be reclassified
subsequently to profit or loss
Exchange differences on translation
of foreign operations:
- Non-controlling interest 4,507 4,960
Changes in the fair value/realisation of financial
assets at fair value through other comprehensive
income, net of tax (717) (12,981)
========================================================== ============= ==============
Other comprehensive loss for the year, net of tax (13,508) (24,127)
========================================================== ============= ==============
Total comprehensive loss for the year (48,173) (391,598)
========================================================== ============= ==============
Total comprehensive (loss)/gain
attributable to:
Members of the parent (52,098) (348,290)
Non-controlling interest 3,925 (43,308)
=================================================== ===== ============= ==============
(48,173) (391,598)
========================================================== ============= ==============
Loss per share for net loss attributable for continuing
operations to the ordinary equity holders of the
parent: cents cents
========================================================== ============= ==============
Basic loss per share 3 (2.85) (28.92)
=================================================== ===== ============= ==============
Diluted loss per share 3 (2.85) (28.92)
=================================================== ===== ============= ==============
The above consolidated statement of comprehensive income should be read in conjunction with the accompanying notes.
Consolidated Statement of Financial Position
for the year ended 31 December 2022
$'000 Note 2022 2021
(Restated)(1)
============================================= ===== ========= ===============
Current assets
Cash 4 80,873 67,607
Other financial assets - restricted cash 1,406 9,443
Receivables 5 48,793 27,812
Inventories 8 146,430 156,589
Financial assets at fair value through other
comprehensive income - 20,828
Prepayments and other assets 11,141 12,868
Asset sale receivable - 56,495
Total current assets 288,643 351,642
==================================================== ========= ===============
Non current assets
Income tax asset 13 10,545 11,303
Inventories 8 42,434 53,918
Investments in associates - 1,365
Promissory notes receivable 40,015 40,207
Contingent consideration receivable 13,636 14,524
Exploration and evaluation 3,211 2,909
Development 227,121 264,491
Property, plant and equipment 229,735 229,164
Right of use assets 13,453 7,708
============================================= ===== ========= ===============
Total non current assets 580,150 625,589
==================================================== ========= ===============
Total assets 868,793 977,231
==================================================== ========= ===============
Current liabilities
Payables 63,700 91,542
Financial derivative liabilities 1,546 -
Interest bearing liabilities 6 95,634 92,726
Provisions 9 100,377 57,165
Lease liabilities 3,373 2,991
Current tax liabilities 19,107 7,137
============================================= ===== ========= ===============
Total current liabilities 283,737 251,561
==================================================== ========= =============== Non current liabilities Interest bearing liabilities 6 29,482 223,979 Provisions 9 71,544 73,424 Deferred tax liabilities - 1,591 Lease liabilities 12,536 8,086 ============================================= ===== ========= =============== Total non current liabilities 113,562 307,080 ==================================================== ========= =============== Total liabilities 397,299 558,641 ==================================================== ========= =============== Net assets 471,494 418,590 ==================================================== ========= =============== Equity attributable to equity holders of the parent Contributed equity 7 882,731 777,021 Reserves (21,956) (3,706) Retained earnings (317,341) (283,258) Total equity attributable to equity holders of the parent 543,434 490,057 Non-controlling interest (71,940) (71,467) Total equity 471,494 418,590 ==================================================== ========= ===============
The above consolidated statement of financial position should be read in conjunction with the accompanying notes.
(1) Refer to restatement of comparative information Note 13
Consolidated Statement of Changes in Equity
for the year ended 31 December 2022
Non-controlling
interest
Convertible of
notes/ Retained disposal
Net Share Employee Foreign earnings/ group
unrealised options Non-controlling equity currency (accumulated held
Contributed gain/(loss) equity interests benefits translation losses) Non-controlling for
$'000 equity reserve reserve reserve reserve reserve (Restated)(1) interest(1) sale Total
=============== ============ ============ ============ ================ ========= ============ ============== ================ ================ ==========
At 1 January
2022 777,021 (8,631) 4,876 (724) 19,813 (19,040) (283,258) (71,467) - 418,590
=============== ============ ============ ============ ================ ========= ============ ============== ================ ================ ==========
Loss for the
year - - - - - - (34,083) (582) - (34,665)
Other
comprehensive
(loss)/income
,
net of tax - (717) - - - (17,298) - 4,507 - (13,508)
=============== ============ ============ ============ ================ ========= ============ ============== ================ ================ ==========
Total
comprehensive
(loss) - (717) - - - (17,298) (34,083) 3,925 - (48,173)
============ ============ ============ ================ ========= ============ ============== ================ ================ ==========
/income for
the
year, net of
tax
=============== ============ ============ ============ ================ ========= ============ ============== ================ ================ ==========
Shares issued
(net
of cost) 105,710 - - - - - - - - 105,710
Dividends paid - - - - - - - (4,398) - (4,398)
Share based
payments
expense - - - - (235) - - - - (235)
=============== ============ ============ ============ ================ ========= ============ ============== ================ ================ ==========
At 31 December
2022 882,731 (9,348) 4,876 (724) 19,578 (36,285) (317,341) (71,940) - 471,494
=============== ============ ============ ============ ================ ========= ============ ============== ================ ================ ==========
At 1 January
2021 777,021 4,350 4,876 (724) 18,607 (2,934) 35,945 (22,023) (6,981) 808,137
=============== ============ ============ ============ ================ ========= ============ ============== ================ ================ ==========
Loss for the
year - - - - - - (319,203) (47,929) (339) (367,471)
Other
comprehensive
(loss)/income
,
net of tax - (12,981) - - - (16,106) - 4,960 - (24,127)
=============== ============ ============ ============ ================ ========= ============ ============== ================ ================ ==========
Total
comprehensive
(loss) - (12,981) - - - (16,106) (319,203) (42,969) (339) (391,598)
============ ============ ============ ================ ========= ============ ============== ================ ================ ==========
/income for
the
year, net of
tax
=============== ============ ============ ============ ================ ========= ============ ============== ================ ================ ==========
Dividends paid - - - - - - - (6,475) - (6,475)
Share based
payments
expense - - - - 1,206 - - - - 1,206
Disposal of
assets
held for sale - - - - - - - - 7,320 7,320
=============== ============ ============ ============ ================ ========= ============ ============== ================ ================ ==========
At 31 December
2021 777,021 (8,631) 4,876 (724) 19,813 (19,040) (283,258) (71,467) - 418,590
=============== ============ ============ ============ ================ ========= ============ ============== ================ ================ ==========
The above consolidated statement of changes in equity should be read in conjunction with the accompanying notes.
(1) Refer to restatement of comparative information Note 13
Consolidated Cash Flow Statement
for the year ended 31 December 2022
$'000 Note 2022 2021 ================================================= ==== ========= ========== Cash flows from operating activities Receipts from customers 650,591 549,013 Payments to suppliers, employees and others (524,706) (451,554) Exploration expenditure (10,745) (13,643) Interest paid (16,619) (14,874) Interest received 214 - Indirect tax receipts/ (payments) 164 (14,853) Income tax paid (7,994) (3,531) Net cash flows from operating activities 90,905 50,558 ================================================= ==== ========= ========== Cash flows used in investing activities Payments for property, plant & equipment (35,811) (30,387) Payments for development activities (27,602) (22,908) Payments for evaluation activities (4,372) (2,926) Proceeds from sale of asset 60,000 30,740 Payments relating to asset held for sale - (5,445) Proceeds from sale of investment
in associate 4,534 - Proceeds from sale of financial assets at fair value through other comprehensive income 19,148 2,289 Payments for sale of financial assets at fair value through other comprehensive income - (1,179) Other investing activities (725) (697) ================================================= ==== ========= ========== Net cash flows from/(used in) investing activities 15,172 (30,513) ======================================================= ========= ========== Cash flows from financing activities Repayment of borrowings (195,000) (79,811) Proceeds from finance facilities - 50,000 Proceeds from issuing ordinary shares 110,289 - Payments for share issue costs (4,579) - Dividends paid to non-controlling interest (5,089) (5,858) Repayment of principal portion of lease liability (3,457) (13,823) ================================================= ==== ========= ========== Net cash flows (used in)/from financing activities (97,837) (49,492) ======================================================= ========= ========== Net increase/(decrease) in cash and cash equivalents 8,240 (29,447) ======================================================= ========= ========== Cash and cash equivalents at the beginning of the year 25,237 55,226 Exchange rate adjustment 1,982 (542) ================================================= ==== ========= ========== Cash and cash equivalents at the end of the year 35,459 25,237 ======================================================= ========= ========== Cash and cash equivalents comprise the following: Cash at bank and on hand 4 80,873 67,607 Bank overdraft 4 (45,414) (42,370) ================================================= ==== ========= ========== Cash and cash equivalents at the end of the year 35,459 25,237 ======================================================= ========= ==========
The above consolidated cash flow statement should be read in conjunction with the accompanying notes
Notes to the Preliminary Final Report
for the year ended 31 December 2022
About this Report
The preliminary final report of Resolute Mining Limited and its subsidiaries ("Resolute" or the "Group") for the year ended 31 December 2022 was authorised for issue in accordance with a resolution of directors.
Resolute Mining Limited (the parent) is a for profit company limited by shares incorporated and domiciled in Australia whose shares are publicly traded on the Australian Securities Exchange and the London Stock Exchange.
Basis of Preparation
This report is based on accounts that are in the process of being audited.
This report does not include all of the notes normally included in an Annual Financial Report. Accordingly, this report is to be read in conjunction with the financial report for the year ended 31 December 2021 and any public announcements made by RML during the reporting period in accordance with the continuous disclosure requirements of the Corporations Act 2001.
Rounding of Amounts
The Financial Report has been prepared in United States dollars and all values are rounded to the nearest thousand dollars ($'000) unless otherwise stated.
1 Segment revenues and expenses
Unallocated
(b)
===========
31 December 2022 Mako Syama Corporate/
(Mali)
$'000 (Senegal) Other Total
========================================= ================ ============ =========== =================
Revenue
Gold and silver sales at spot to
external customers (a) 236,760 414,369 - 651,129
========================================= ================ ============ =========== =====================
Total segment gold and silver sales
revenue 236,760 414,369 - 651,129
========================================= ================ ============ =========== =====================
Costs of production (129,967) (259,386) - (389,353)
Gold in circuit inventories movement (336) (21,793) - (22,129)
========================================= ================ ============ =========== =====================
Costs of production relating to
gold sales (130,303) (281,179) - (411,482)
========================================= ================ ============ =========== =====================
Royalty expense (11,838) (27,736) - (39,574)
Operational support costs (17,714) (4,728) - (22,442)
========================================= ================ ============ =========== =====================
Other operating costs relating
to gold sales (29,552) (32,464) - (62,016)
========================================= ================ ============ =========== =====================
Administration and other corporate
expenses (4,777) (1,160) (8,456) (14,393)
========================================= ================ ============ =========== =====================
Share-based payments expense - - (457) (457)
========================================= ================ ============ =========== =====================
Exploration, business development
and impairment of investments (4,018) (9,578) (1,019) (14,615)
========================================= ================ ============ =========== =====================
Earnings/(loss) before interest,
tax, depreciation and amortisation 68,110 89,988 (9,932) 148,166
========================================= ================ ============ =========== =====================
Amortisation of evaluation, development
and rehabilitation costs (30,496) (25,520) - (56,016)
Depreciation of mine site properties,
plant and equipment (12,002) (15,688) - (27,690)
========================================= ================ ============ =========== =====================
Depreciation and amortisation relating
to gold sales (42,498) (41,208) - (83,706)
========================================= ================ ============ =========== =====================
Segment operating result before
treasury, other income/ (expenses)
and tax 25,612 48,780 (9,932) 64,460
========================================= ================ ============ =========== =====================
Interest income 7 24 5,482 5,513
========================================= ================ ============ =========== =====================
Other income - 14 4,535 4,549
========================================= ================ ============ =========== =====================
Interest and fees (442) (4,121) (14,871) (19,434)
Rehabilitation and restoration provision
accretion (397) (955) - (1,352)
========================================= ================ ============ =========== =====================
Finance costs (839) (5,076) (14,871) (20,786)
========================================= ================ ============ =========== =====================
Realised foreign exchange (loss)/gain 853 879 (3,209) (1,477)
========================================= ================ ============ =========== =====================
Treasury - realised gains/(losses) 853 879 (3,209) (1,477)
========================================= ================ ============ =========== =====================
Inventories net realisable value
movements and obsolete consumables (7,004) (29,073) - (36,077)
================ ============ =========== =====================
Unrealised foreign exchange (loss)/
gain (1,016) - (14,025) (15,041)
Unrealised foreign exchange loss
on intercompany balances - - 1,696 1,696
========================================= ================ ============ =========== =====================
Fair value movements and unrealised
treasury transactions (1,016) - (12,329) (13,345)
========================================= ================ ============ =========== =====================
Share of associates' losses - - (1,305) (1,305)
Depreciation of non-mine site assets (175) - (2,013) (2,188)
Indirect tax expense - (13,387) (62) (13,449)
Income tax expense (13,411) (4,178) (2,971) (20,560)
========================================= ================ ============ =========== =====================
Profit/(Loss) for the 12 months
to 31 December 2022 4,027 (2,017) (36,675) (34,665)
========================================= ================ ============ =========== =====================
1 Segment revenues and expenses (continued)
Unallocated
(b)
===========
31 December 2021 Mako Syama Corporate/
(Mali)
$'000 (Senegal) Other Total
================== ====================================== ================ =========== =========== =================
Revenue
Gold and silver
sales at spot to
external
customers (a) 221,478 327,764 - 549,242
================== ======================================================== =========== =========== =================
Total segment gold
and silver sales
revenue 221,478 327,764 - 549,242
================== ======================================================== =========== =========== =================
Costs of
production (87,541) (245,920) - (333,461)
Gold in circuit
inventories
movement 583 7,894 - 8,477
================== ======================================================== =========== =========== =================
Costs of
production
relating to
gold sales (86,958) (238,026) - (324,984)
================== ======================================================== =========== =========== =================
Royalty expense (11,074) (21,863) - (32,937)
Operational
support costs (17,528) (5,344) (3,257) (26,129)
================== ======================================================== =========== =========== =================
Other operating
costs relating
to gold sales (28,602) (27,207) (3,257) (59,066)
================== ======================================================== =========== =========== =================
Administration and
other corporate
expenses (5,060) (1,617) (9,010) (15,687)
================== ======================================================== =========== =========== =================
Share-based
payments expense - - (1,122) (1,122)
================== ======================================================== =========== =========== =================
Exploration,
business
development
and impairment of
investments (3,512) (4,802) (10,170) (18,484)
================== ======================================================== =========== =========== =================
Earnings/(loss)
before interest,
tax, depreciation
and amortisation 97,346 56,112 (23,559) 129,899
================== ======================================================== =========== =========== =================
Amortisation of
evaluation,
development
and
rehabilitation
costs (15,600) (25,894) - (41,494)
Depreciation of
mine site
properties,
plant and
equipment (40,262) (36,865) - (77,127)
================== ======================================================== =========== =========== =================
Depreciation and
amortisation
relating
to gold sales (55,862) (62,759) - (118,621)
================== ======================================================== =========== =========== =================
Segment operating
result before
treasury, other
income/
(expenses)
and tax 41,484 (6,647) (23,559) 11,278
================== ======================================================== =========== =========== =================
Interest income 69 - 5,072 5,141
================== ======================================================== =========== =========== =================
Other income - - 3,248 3,248
================== ======================================================== =========== =========== =================
Interest and fees (434) (2,854) (13,312) (16,600)
Gain on
remeasurement for
refinancing - - 316 316
Rehabilitation and
restoration
provision
accretion (165) (433) - (598)
================== ======================================================== =========== =========== =================
Finance costs (599) (3,287) (12,996) (16,882)
================== ======================================================== =========== =========== =================
Realised foreign
exchange
(loss)/gain (1,431) 387 859 (185)
================== ======================================================== =========== =========== =================
Treasury -
realised
gains/(losses) (1,431) 387 859 (185)
================== ======================================================== =========== =========== =================
Inventories net
realisable value
movements and
obsolete
consumables (53,188) 8,930 - (44,258)
================== ======================================================== =========== =========== =================
Unrealised foreign
exchange (loss)/
gain 635 - (17,120) (16,485)
Unrealised foreign
exchange loss
on intercompany
balances - - (11,212) (11,212)
================== ======================================================== =========== =========== =================
Fair value
movements and
unrealised
treasury
transactions 635 - (28,332) (27,697)
================== ======================================================== =========== =========== =================
Share of
associates'
losses - - (3,838) (3,838)
Depreciation of
non-mine site
assets (151) - (2,221) (2,372)
Impairment of
exploration and
evaluation
assets (4,808) - (260) (5,068)
Impairment of mine
properties and
property, plant
and equipment (55,023) (167,373) - (222,396)
Indirect tax
expense (9,026) (9,874) (5,860) (24,760)
Income tax expense (1,413) (34,424) (3,845) (39,682)
================== ======================================================== =========== =========== ================= Profit/(Loss) for the 12 months to 31 December 2021 (83,451) (212,288) (71,732) (367,471) ================== ======================================================== =========== =========== =================
a) Revenue from external sales for each reportable segment is derived from several customers.
b) This information does not represent an operating segment as defined by AASB 8, however this information is analysed in this format by the Chief Operating Decision maker, and forms part of the reconciliation of the results and positions of the operating segments to the financial statements.
2 Dividends paid or proposed
The company's dividend policy is, subject to board discretion, to pay a minimum of 2% of gold sales revenue as a dividend. A dividend has not been declared for the year ended 31 December 2022.
3 Earnings/(loss) per share
$'000 31 December 31 December
2022 2021
===================================================== ============= ==============================
Basic (loss)/earnings per share
(Loss)/profit attributable to ordinary equity
holders for operation of the parent for basic
loss per share ($'000) (34,083) (319,203)
Weighted average number of ordinary shares
outstanding during the year used in the calculation
of basic and diluted EPS 1,196,856,518 1,103,896,747
cents cents
===================================================== ==============================
Basic (loss)/earnings per share from operations
(cents per share) (2.85) (28.92)
===================================================== ============= ==============================
Diluted (loss)/earnings per share from operations
(cents per share) (1) (2.85) (28.92)
===================================================== ============= ==============================
Basic loss per share - continuing operations
Loss attributable to ordinary equity holders
for continuing operations of the parent for
basic loss per share ($'000) (34,083) (319,203)
Weighted average number of ordinary shares
outstanding during the year used in the calculation
of basic EPS 1,196,856,518 1,103,896,747
cents cents
===================================================== ==============================
Basic loss per share from continuing operations
(cents per share) (2.85) (28.92)
===================================================== ============= ==============================
Diluted loss per share from continuing operations
(cents per share) (2) (2.85) (28.92)
===================================================== ============= ==============================
(1) Potentially dilutive instruments have not been included in the calculation of diluted earnings per share for 31 December 2022 and 31 December 2021 because the result for the year was a loss.
2 Potentially dilutive instruments have not been included in the calculation of diluted earnings per share for continuing operations for 31 December 2022 and 31 December 2021 because the result for the year was a loss.
4 Cash
31 December 31 December
2022 2021
$'000 $'000
============ ============
Cash at bank and on hand 80,873 67,607
Reconciliation to cash flow statement
For the purpose of the cash flow statement,
cash and cash equivalents comprise the following
at the end of each year:
Cash at bank and on hand 80,873 67,607
Bank overdraft (Note 6) (45,414) (42,370)
================================================== ============
Cash and cash equivalents at the end of the
year 35,459 25 ,237
================================================== ============ ============
5 Receivables
31 December 31 December
2022 2021
==============================
$'000 $'000
============================== =========== ===========
Trade and other receivables 37 441
Taxation receivables 48,756 27,371
============================== =========== ===========
Total receivables 48,793 27,812
============================== =========== ===========
The Taxation receivables balance comprises a receivable of $12.1 million (2021: $9.0 million) in relation to VAT paid by the Syama operation. Also included in the Taxation receivables is a VAT receivable of $34.9 million (2021: $10.1 million) relating to the Mako operation ("Mako VAT"). The Mako VAT represents the VAT which would be payable (and then refundable) in the event the Company is unsuccessful in extending the tax exoneration by an additional two years to July 2023. The remainder of the balance relates to Australian Goods and services tax (GST) amounts. Resolute continues to work with its legal and tax advisors to contest the position taken by the Senegalese and Malian Authorities. Refer to Note 9.
6 Interest bearing liabilities
31 December 31 December
2022 2021
$'000 $'000
============================================= ============ ============
Interest bearing liabilities (current)
Bank overdraft (Note 4) 45,414 42,370
Insurance premium funding - 109
Bank borrowings 50,220 50,247
Total Interest bearing liabilities (current) 95,634 92,726
============================================= ============ ============
Interest bearing liabilities (non current)
Bank borrowings 29,482 223,979
============================================= ============ ============
Total Interest bearing liabilities (non
current) 29,482 223,979
============================================= ============ ============
7 Contributed Equity
31 December 31 December
2022 2021
$'000 $'000
=========== ===========
Ordinary share capital:
2,129,006,569 ordinary fully paid shares (2021:
1,103,931,520) 883,306 777,021
Movements in contributed equity, net of issuing
costs:
Balance at the beginning of the year 777,021 777,021
Placement of shares to institutional and retail
investors 110,289 -
Share issue costs (4,579) -
Balance at the end of the year 882,731 777,021
================================================ =========== ===========
8 Inventories
31 December 31 December
2022 2021
===============================================
$'000 $'000
=============================================== =========== ===========
Current
Ore stockpiles
- At cost 27,223 47,054
- At net realisable value 28,286 6,381
=============================================== =========== ===========
Total current ore stockpiles 55,509 53,435
=============================================== =========== ===========
Gold in circuit - at cost 4,186 22,353
Gold in circuit - at net realisable value 373 1,503
Gold bullion on hand - at cost 10,276 15,697
Gold bullion on hand - at net realisable value - 1,722
Consumables at net realisable value 76,086 61,879
=============================================== =========== ===========
Total inventory (current) 146,430 156,589
=============================================== =========== ===========
Non Current
Ore stockpiles - at cost 1,959 1,935
Ore stockpiles - at net realisable value 3,279 6,559
Gold in circuit - at net realisable value 37,196 45,424
=============================================== =========== ===========
Total inventory (non current) 42,434 53,918
=============================================== =========== ===========
9 Provisions
31 December 31 December
2022 2021
===============================
$'000 $'000
=============================== =========== ===========
Current
Site restoration 1,220 1,795
Employee entitlements 4,336 2,511
Dividend payable 136 150
Provision for indirect taxes 92,936 50,381
Other provisions 1,749 2,328
Total provisions (current) 100,377 57,165
=============================== =========== ===========
Non Current
Site restoration 70,874 72,172
Employee entitlements 670 1,252
Total provisions (non current) 71,544 73,424
=============================== =========== ===========
Resolute's subsidiaries SOMISY(Mali) and PMC(Senegal), have received demands for payment to the Local Tax Authorities in relation to Income Tax and indirect tax for the years ended 31 December 2015 to 2022.
At 31 December 2022 the total provision for indirect taxes has increased from $50.4 million to $92.9 million.
This increase is as a result of an additional $37.6 million due to the potential reduction in the Mako tax exoneration period to 5 years. This amount relates to provisions for customs duties and VAT. Whilst these amounts are recognised as provisions. Resolute is firmly of the view that it has complied with all the requirements for the extension of the tax exoneration to 7 years and will continue to work with the Senegalese authorities to resolve this matter.
The remainder of the increase relates to an additional $4.6 million of indirect tax provisions in Mali based on government demands received, with a provision recognised in line with the requirements of relevant accounting standards. Resolute continues to challenge the factual basis and validity of these demands which are strongly disputed due to fundamental misinterpretations of the application of certain taxes. Resolute continues to work with its legal and tax advisors to contest the positions taken by the Authorities.
10 Subsequent events
On 19 January 2023, the Group announced that the Syama North Resource estimate increased to 34.0 million tonnes at 2.9g/t for 3.2 million ounces of gold.
11 Impairment testing
Impairment indicator assessment
At 31 December 2022, Resolute's quoted market capitalisation was lower than its net asset carrying value. Further, Resolute noted that the impact of inflationary pressures on costs and increase in risk free rate that underpins the applicable discount rate. These factors were considered as indicators of impairment. As a result, an impairment test was performed to determine the recoverable amounts for all CGU's of the Group, being the Syama Gold Mine and the Mako Gold Mine using the fair value less cost to sell (FVLCD) method.
Syama CGU - 31 December 2022
Syama indicator assessment
Whilst Syama's 2022 forecast production remain in line with budget, as a result of the general indicators of impairment noted above, a formal impairment test was performed to determine the recoverable amount for the Syama CGU.
Key Assumptions used to determine recoverable amount
The table below summarises the key assumptions used in determining the recoverable amount:
31 December 2022 31 December 2021
============================== ================ ================
Gold price ($/oz) 1,735-1,534 1,777-1,467
Discount rate (post tax real) 14.8% 14.0%
Unmined resources ($/oz) $20-$58 $20-$54
============================== ================ ================
Gold prices
Gold prices are estimated with reference to external market forecasts based on a consensus view of market experts.
Discount rate
In determining the recoverable amount of assets, the future cash flows were discounted using rates based on the CGU's estimated real weighted average cost of capital, with an additional premium applied having regard to the CGU's risk profile.
Unmined resources
Unmined resources which are not included in the life -- of -- mine plan as result of the current assessment of economic returns, timing of specific production alternatives and the prevailing economic environment have been valued and included in the assessed fair value.
Operating and capital costs
Life -- of -- mine operating and capital cost assumptions are based on the Group's latest budget and life -- of mine plans. Operating cost assumptions reflect an assumption of maintaining current cost, over the long term, without including expected improvements over the life of mine.
Recognition
As a result of the analysis performed, there is no impairment loss recognised for the Syama CGU for the period ended 31 December 2022.
11 Impairment of non current assets (continued)
Mako CGU - 31 December 2022
Mako indicator assessment
Whilst Mako's 2021 forecast production and cost remain in line with budget, as a result of the general indicators of impairment noted above and the reduction in the tax exoneration period to 5 years (refer to Note 5), a formal impairment test was performed to determine the recoverable amount for the Mako CGU.
K ey Assumptions
The table below summarises the key assumptions used in the determining the recoverable amount:
31 December 2022 31 December 2021
============================== ================ ================
Gold price ($/oz) 1,735-1,534 1,777-1,467
Discount rate (post tax real) 10.5% 10.5%
Unmined resources ($/oz) $48 $44
============================== ================ ================
Gold prices
Gold prices are estimated with reference to external market forecasts based on a consensus view of market experts.
Discount rate
In determining the recoverable amount of assets, the future cash flows were discounted using rates based on the CGU's estimated real discount rate, with an additional premium applied having regard to the CGU's risk profile.
Unmined resources
Unmined resources which are not included in a CGU's life -- of -- mine plan as result of the current assessment of economic returns, timing of specific production alternatives and the prevailing economic environment have been valued and included in the assessed fair value.
Operating and capital costs
Life -- of -- mine operating and capital cost assumptions are based on the Group's latest budget and life -- of mine plans. Operating cost assumptions reflect an assumption of maintaining current cost, over the long term, without including expected improvements over the life of mine.
Recognition
As a result of the analysis performed, there is no impairment loss recognised for the Mako CGU for the period ended 31 December 2022.
12 Investment in associates
The Group has 23.3% investment in Loncor Resources Inc, with a carrying value of nil as at 31 December 2022 (31 December 2021:$1.2 million).
13 Restatement of comparative information
During 2022, the Group identified information that resulted in a restatement to the prior periods. The impact on previously reported amounts is summarised in the tables below, with the restatement only affecting amounts presented in the Consolidated Statement of Financial Position.
$'000 31 December 2021 Restatement 31 December 2021
As Reported Restated
========================================================== ================ =========== ================
Total current assets 351,642 - 351,642
========================================================== ================ =========== ================
Non current assets
Income tax asset 18,273 (6,970) 11,303
Total non current assets 632,559 (6,970) 625,589
========================================================== ================ =========== ================
Total assets 984,201 (6,970) 977,231
========================================================== ================ =========== ================
Total liabilities 558,641 - 558,641
========================================================== ================ =========== ================
Net assets 425,560 (6,970) 418,590
========================================================== ================ =========== ================
Equity attributable to equity holders of the parent
Contributed equity 777,021 - 777,021
Reserves (3,706) - (3,706)
Retained earnings (277,682) (5,576) (284,448)
Total equity attributable to equity holders of the parent 495,633 (5,576) 488,867
Non-controlling interest (70,073) (1,394) (71,765)
Total equity 425,560 (6,970) 417,102
========================================================== ================ =========== ================
The decrease in net assets at 31 December 2021 is due to the derecognition of income tax asset for the Syama operation in Mali. A reduction of CFA 4.271 billion ($6.9 million) was recorded on the basis that this amount did not meet the recognition criteria for a tax asset at 30 June 2018 and should have been recognised in the Consolidated Statement of Comprehensive Income as a tax expense.
At 1 January 2021, this resulted in the reduction of the income tax assets of $6.9 million, a reduction in retained earnings of $5.6 million and a reduction in Non-controlling interest of $1.4 million.
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END
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February 24, 2023 02:00 ET (07:00 GMT)
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