RESOLUTE Mining said it had targeted gold production for the 2020 financial year at some 500,000 ounces at an all-in sustaining cost (AISC) of $960/oz.
It added that it would significant in-roads into net debt which was $267m as of December 31 through a combination of increased cash flow and the refinancing of a $130m loan that was provided by Taurus Funds Management.
The loan provided the cash element to Resolute’s successful $274m tilt at Toro Gold in July with the balance of the acquisition consisting of Resolute shares. The refinance would be through an increase in its lower cost revolving loan facility in the current quarter.
“The refinancing of the Taurus facilities … and cashflow generated from operations during the remainder of FY20, is expected to significantly reduce Resolute’s total debt,” said the company. Total debt was $394m as of December 31.
Toro Gold’s Mako mine in Senegal would be the major difference in taking Resolute to its 2020 production number which compares to some 384,731 oz (versus a 400,000 oz target) produced in the 2019 financial year. At $960/oz, the AISC cost target is a 12% improvement on AISC of $1,090/oz in the firm’s 2019 financial year.
John Welborn, MD and CEO of Resolute, said in a statement today that Syama was over the technical problems at its processing facilities in Mali which led to downtime and ultimately the lower than guided production number for the year. “Production guidance for 2020 of 500,000 oz is a significant milestone for Resolute,” he said.
“Following completion of the repairs at Syama in late 2019, we have started 2020 with all our operations operating at nameplate capacity and generating positive cashflows.
“Strong operating cashflows, and reduced capital demands, will support a stronger balance sheet and create further opportunities for Resolute’s growth and ambition.”
The post Resolute targets 500,000 oz in 2020 with 12% AISC reduction as Mako makes its mark appeared first on Miningmx.
Source: miningmx.comFollow us: