Resolute Mining shares edge higher despite guidance miss
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The news: Shares in Resolute Mining gained in morning trade on the ASX, even as the gold miner failed to meet its full-year production and cost guidance.
The numbers: Resolute shares were up 0.6% to 42.3 cents by 10:30am AEDT.
The company reported full-year gold production of 340,000 ounces, up from its previous annual haul of 331,000 ounces, but below guidance of 345,000 to 365,000 ounces.
All-in sustaining costs (AISC) of $1,476 per ounce increased year on year from $1,470, and came in above guidance of between $1,300 and $1,400.
Unaudited 2024 revenue of $800 million marked an improvement on $631 million in 2023, while the miner's average realised gold price climbed from $1,920 per ounce to $2,383 year on year.
Resolute set 2025 production guidance of 275,000 to 300,000 ounces at AISC of $1,650 to $1,750 per ounce.
The context: Resolute, which operates the Syama gold mine in Mali and the Mako gold mine in Senegal, said the 2024 production and costs were hindered by lower-than-expected production at Mako, as well as changes to the mining code in Mali.
The Mako operation was impacted by heavy rain in the second half and delivered lower-than-expected grades.
Resolute has guided for lower production levels in 2025, with open pit mining at Mako due to stop at the end of the second quarter.
Shares in the company plummeted last year after CEO Terence Holohan and two other employees were temporarily detained in Mali by government officials in November.
The source: ASX announcement
