Resolute adds to US$ gold hedge book

RNS Number : 1795D

Resolute Mining Limited

17 February 2020

 

17 February 2020

Resolute Mining Limited

(Resolute or the Company)

Resolute adds to US$ gold hedge book

30,000 ounces forward sold at average price of US$1,590 per ounce

Resolute Mining Limited (Resolute or the Company) (ASX/LSE: RSG) advises that the Company has forward sold 30,000 ounces of gold at an average price of US$1,590 per ounce in scheduled monthly deliveries of 5,000 ounces between January 2021 and June 2021.

Resolute has taken advantage of strength in the gold price to extend the Company's US dollar denominated gold hedge position for the first half of 2021. 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 115,000 ounces of gold forward sold at an average price of US$1,535 per ounce in scheduled monthly deliveries to June 2021.   

Resolute maintains a hedging policy of committing to forward deliveries of gold production to take advantage of elevated gold prices. Resolute's total gold hedge book as at 17 February 2020, including the new US dollar gold hedges, consists of 225,000 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 operating cash flows through responsible hedging strategies:

"Incremental expansion of our US dollar hedging position at levels which are significantly above our budgeted gold price, protects and supports Resolute's near-term cash flows. Resolute's hedging program has strong support from our syndicate banks as our modest hedge book protects the Company's balance sheet and supports our gold-linked revenues. With long mine lives and large gold inventories, Resolute remains strongly leveraged to future upside in the gold price."

For further information, contact:

John Welborn Managing Director & CEO

Jeremy Meynert General Manager - Business Development & Investor Relations

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

Resolute has a Global Mineral Resource base of more than 19 million ounces of gold. The Company's flagship asset is the world class Syama Gold Mine in Mali which has the ability to produce 300,000 ounces of gold per annum from existing processing infrastructure. Resolute has commissioned the world's first 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 approximately 140,000 ounces of gold. A binding agreement has been signed to sell the Ravenswood Gold Mine in Queensland, Australia for up to A$300 million. A strategic review is currently underway of the Bibiani Gold Mine in Ghana.

Resolute's guidance for FY20 has been set at production of 500,000 ounces of gold at an AISC of US$980 per ounce. FY20 Guidance will be revised once the sale of Ravenswood has been finalised. 

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]

Authorised by Mr John Welborn, Managing Director & CEO

ASX/LSE: RSG Capital Summary Fully Paid Ordinary Shares: 1,035,886,919 Current Share Price (ASX): A$1.12 as at 15 February 2020 Market Capitalisation: A$1.2 Billion FY20 Guidance: 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] .au

 

 

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