Resolute Mining cuts Q2 gold production guidance on Mali conflict
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The news: Resolute Mining has lowered its second-quarter gold production forecast for its Syma gold mine operation to approximately 30 koz (thousand ounces), compared to initial expectations of 40 to 45 koz , citing ongoing logistical and supply chain disruptions over the past month.
The context: Resolute Mining noted that its Syma gold mine has been experiencing significant security challenges in Mali from late April through May, causing severe supply chain disruptions.
The operational challenges were primarily driven by delays in equipment deliveries to the mine, stemming from road insecurity in parts of the country.
Further to this, the company said underground ore quality declined due to intermittent blasting and temporary disruptions in the supply of explosives linked to regional instability, resulting in an increased reliance on lower-grade stockpiles.
Syma expects production to improve as access to higher grades resumes and regional security stabilises. While the second-quarter production forecast has been lowered, Resolute still expects full-year Syma production to achieve the lower end of its guidance range of 195 to 210 koz.
What they said: “The broader business continues to perform well. The company remains cash generative, supporting ongoing investment in growth, including the Doropo development, which continues to progress to plan,” CEO Chris Eger said.
The source: ASX
