Highlights

  • Berenberg and Macquarie maintain positive ratings on RSG with target prices up to AUD 1.50.
  • RSG reports higher quarterly production and increased operating cash flow in the December quarter.
  • Doropo feasibility update and 2026 guidance outline production and capital plans.

Resolute Mining Ltd (ASX:RSG) shares declined 3.37% to close at AUD 1.29 on 22 January, underperforming amid broader weakness across the materials sector. The S&P/ASX 200 Materials Index (XMJ) fell 1.71% to 22,883.80 points on the same day. Despite the pullback, the stock remains up approximately 215% over the past year, with brokers maintaining positive ratings.

Furthermore, on 22 January, the company released its December quarter update, which outlined production outcomes, cost movements, and project developments across its operating portfolio.

Brokers Maintain Positive Ratings

Berenberg issued a Buy rating on Resolute Mining with a target price of AUD 1.50, while Macquarie Research reiterated an Outperform rating with a target price of AUD 1.45.

Gold Production and Cost Trends

For the quarter ended 31 December 2025, Resolute reported group gold production of 65,918 ounces, up from 59,857 ounces in the previous quarter. The increase was driven by ongoing stockpile processing at the Mako operation in Senegal and improved underground output at Syama in Mali.

All-In Sustaining Costs (AISC) for the quarter were reported at AUD 1,877 per ounce, compared with AUD 2,205 per ounce in the September quarter. Capital expenditure, excluding exploration, totalled AUD 18.4 million, down from AUD 26.6 million in the prior quarter. Operating cash flow before capital expenditure and working capital rose to AUD 85.7 million.

Financial Position and Full-Year Performance

Resolute ended the quarter with net cash of AUD 209.1 million, up from AUD 136.6 million at the end of the September quarter. Total available liquidity stood at AUD 322.3 million.

For the full year, group gold production reached 277,236 ounces, within guidance, with gold sales of 258,544 ounces at an average realised price of AUD 3,338 per ounce. Full-year gold revenue totalled AUD 865.6 million, while operating cash flow before capital expenditure and working capital amounted to AUD 313.5 million. EBITDA for the year was reported at AUD 382.9 million.

Project Updates and Forward Guidance

The company released an updated Definitive Feasibility Study for the Doropo project in Côte d’Ivoire, outlining a mine life of approximately 13 years with average annual production of around 170,000 ounces. A post-tax project NPV of USD 1.46 billion and an IRR of 49% were reported at a gold price of USD 3,000 per ounce.

Resolute’s 2026 production guidance stands at 250,000 to 275,000 ounces, with group AISC expected between AUD 2,000 and AUD 2,200 per ounce. Construction at Doropo is expected to commence in the first half of 2026, subject to permitting and final investment approval.