Image source: Phawat

Highlights

  • Resolute Mining is a multi-asset gold mining company
  • In FY23, the company reported NPAT of USD 182.7 million and EBITDA of USD 161.6 million
  • Condire Management, LP has the maximum stake in RSG with a shareholding of nearly 11.37%

Resolute Mining Limited (ASX: RSG) is an ASX-listed multi-asset gold producing firm. Headquartered in Perth, Western Australia, the company operates two gold mines: the Syama Gold Mine situated in Mali and the Mako Gold Mine located in Senegal. Presently, RSG's primary focus revolves around fostering organic growth at the Syama Gold Mine and prolonging the operational lifespan of the Mako Gold Mine.

In the financial year 2023 (FY23), the company became cash positive. During the reported period, revenue fell by 3.1% YoY to USD 631.1 million because of the fall in gold sales. In FY23, gold sales stood at 329,061oz, while in FY22, it was 357,447oz.

EBITDA in FY23 increased by 9.1% YoY to USD 161.6 million and reported NPAT stood at USD 182.7 million. In FY23, the earnings growth was backed by lower costs and higher gold prices.

Top 10 shareholders of RSG

The top 10 shareholders of RSH have around 47.44% shareholding in the company, while the top four have around 27.38% shareholding. The top two shareholders of RSG are Condire Management, LP and Dimensional Fund Advisors, L.P. with a shareholding of ~11.37% and ~6.01%, respectively.

Recent business update

On 8 March 2024, through an ASX-update, the company released annual ore reserve and resource update for the period ended 31 December 2023. During the reported period, the company maintained mineral resource at 11.2Moz of gold. Ore reserves reported a marginal fall of 4.4Moz at the end of December 2023, compared to 4.6Moz in December 2022.

During the reported period, Syama North ore reserves increased by 17% to 1.0Moz and measured and indicated mineral resources jumped 47% to 2.7Moz. Additionally, mineral resource increased significantly in Senegal.

Outlook

In FY24, the company expects to register gold production of 345,000–365,000 ounces at an AISC of USD 1,300–1,400/oz. The expected range of capital expenditure is USD 115-145 million. The company expects to spend USD 90-110 million on Syama, USD 15-20 million on Mako and USD 10-15 million on exploration activities.

The company is focused on its cost saving initiatives, mine life extension at Mako beyond 2026 and delivering Phase I expansion project at Syama.

Share performance of RSG

RSG shares closed at flat AUD 0.38 apiece on 12 March 2024. With this, the share price of RSG has increased by 31.03% in the last one year and has reported a rise of 10.14% in the last six months.

The 52-week high of RSG is AUD 0.53, recorded on 4 May 2023, while the 52-week low is AUD 0.285, recorded on 13 March 2023.

Note 1: Past performance is neither an Indicator nor a guarantee of future performance.

Note 2: The reference date for all price data, and currency, is 12 March 2024. The reference data in this report has been partly sourced from REFINITIV.