Resolute posts record profit of A$213m

JOHANNESBURG (miningweekly.com) – Australia-based gold miner Resolute Mining, which operates the Syama mine, in Mali, and the Ravenswood operation, in Queensland, booked a profit of A$213-million for the financial year to the end of June, lifted by strong operating results and profits made on the sale of Tanzanian assets.

The net profit for the year is a new record for Resolute and compares with a loss of A$569-million in 2015. The company, which last month reported on its production results, on Tuesday published its unaudited financial results, stating that it had sold 340 540 oz, which delivered gross profit from operations of A$167-million – a 135% year-on-year increase.

The record profit was further boosted by A$45-million in profit from the divestment of residual Tanzanian interests in November, including the extinguishment of net liabilities and an accumulated foreign exchange gain recognised in equity up to the date of the sale.

MD and CEO John Welborn commented that the “excellent result” endorsed Resolute’s strategy of implementing strict discipline in the allocation of capital and applying an urgency to the need to reduce costs in every area of the business.

“We have been resolute in prioritising the repayment of debt and the accumulation of cash and bullion to strengthen the company’s balance sheet and prepare for exciting investments in organic growth.”

Resolute is preparing to invest in long mine life extensions at Syama and Ravenswood and is gearing up for future production at the Bibiani project, in Ghana.

Welborn added that the recent gold price strength had assisted the company in its efforts to raise performance across its business.