Resolute adds to US$ gold hedge book

RNS Number : 2390A

Resolute Mining Limited

20 January 2020

 

20 January 2020

Resolute Mining Limited

(Resolute or the Company)

Resolute adds to US$ gold hedge book

37,200 ounces forward sold at average price of US$1,562/oz

Resolute Mining Limited (Resolute or the Company) (ASX/LSE: RSG) advises that the Company has forward sold an additional 37,200 ounces of gold at an average price of US$1,562 per ounce in scheduled monthly deliveries of 1,200 ounces between July 2020 and December 2020 and scheduled monthly deliveries of 5,000 ounces between January 2021 and June 2021.

Resolute has taken advantage of market volatility and current gold price strength to incrementally extend the Company's US dollar denominated gold hedge position. This hedging secures price certainty for a portion of the US dollar revenues generated from Resolute's African gold mines: the Syama Gold Mine in Mali and the Mako Gold Mine in Senegal.

The additional US dollar hedging extends Resolute's existing US dollar forward gold sales program which consisted of 77,800 ounces of gold forward sold at an average price of US$1,522 per ounce in scheduled monthly deliveries to December 2020 (see ASX Announcement dated 3 January 2020).

Resolute maintains a hedging policy of committing to modest short-dated forward deliveries of a percentage of the Company's gold production to take advantage of elevated gold prices. Resolute's total gold hedge book as at 20 January 2019, including the new US dollar gold hedges, consists of 215,000 ounces in monthly deliveries out to June 2021 representing less than 3% of Resolute's Ore Reserves.

Managing Director and CEO, Mr John Welborn, was pleased to continue Resolute's success in maximising gold sales revenue through responsible hedging strategies:

"Incremental expansion of our US dollar hedging position at current levels which are significantly above our budgeted gold price, protects and supports Resolute's revenue and cash flow. As we seek to expand our existing low-cost senior revolving syndicated loan facility, our hedging program has strong support from our syndicate banks as our modest hedge book protects the Company's balance sheet and supports a portion of our future revenue and cash flows. With long mine lives, large gold inventories, and an industry leading production growth profile, Resolute remains strongly leveraged to future upside in gold prices."

For further information, contact:

John Welborn Managing Director & CEO

Jeremy Meynert General Manager - Business Development & Investor Relations

Authorised by Mr John Welborn, Managing Director & CEO

Contact Information

Resolute John Welborn, Managing Director & CEO Jeremy Meynert, General Manager - BD & IR Telephone: [phone] Email: [e-mail] Web: www.rml.com.au

Berenberg (UK Corporate Broker) Matthew Armitt / Jennifer Wyllie / Detlir Elezi Telephone: [phone] Tavistock (UK Public Relations) Jos Simson / Emily Moss / Annabel de Morgan / Oliver Lamb Telephone: [phone] Email: [e-mail]

About Resolute

Resolute is a successful, dividend paying gold miner with more than 30 years of experience as an explorer, developer and operator of gold mines in Australia and Africa which have produced more than 8 million ounces of gold.

Resolute's production and cost guidance for the 2020 financial year is 500,000 ounces of gold at an All-In Sustaining Cost of US$980 per ounce.  

Resolute owns four gold mines with a Global Mineral Resource base of more than 18 million ounces of gold. Resolute's flagship asset is the world class Syama Gold Mine in Mali (Syama) which can produce more than 300,000 ounces of gold per annum from existing processing infrastructure. Resolute has commissioned the world's first fully automated underground mine at Syama which will deliver a low cost, large scale operation with a mine life beyond 2032. The Mako Gold Mine in Senegal is a high quality, low cost asset with average annual production of ~140,000 ounces of gold. The Ravenswood Gold Mine in Australia and the Bibiani Gold Mine in Ghana are existing largescale assets which provide significant optionality.

Resolute trades on the Australian Securities Exchange (ASX) and the London Stock Exchange (LSE) under the ticker RSG.

ASX/LSE: RSG Capital Summary Fully Paid Ordinary Shares: 903,153,734 Current Share Price (ASX): A$1.19 as at 17 January 2020 Market Capitalisation: A$1.1 Billion FY19 Guidance (to 31 December): 500,000oz @ AISC US$980/oz

Board of Directors Mr Martin Botha Non-Executive Chairman Mr John Welborn Managing Director & CEO Ms Yasmin Broughton Non-Executive Director Mr Mark Potts Non-Executive Director Ms Sabina Shugg Non-Executive Director Mr Peter Sullivan Non-Executive Director

Contact John Welborn Managing Director & CEO Jeremy Meynert GM - BD & IR Level 2, Australia Place | 15-17 William St Perth, Western Australia 6000 T: [phone] "mailto:[e-mail]">[e-mail]

 

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