Resolute now expects full-year production to be 325,000 ounces of gold at all-in sustaining costs of A$1150 an ounce, up from the previous guidance of 300,000oz at AISC of $1280/oz.
Year-to-date production was 259,180oz at AISC of $1031/oz, including 88,622oz at AISC of $1091/oz in the March quarter.
Resolute managing director John Welborn said the strong quarter allowed the company to materially improve full-year guidance.
“I am very proud that this excellent result is being achieved at the same time as we are engaged in transforming both our Syama and Ravenswood operations to new long-life mines,” he said.
Welborn attributed the strong March performance to the early benefits of Project Reprise at Syama, which involves reclaiming deslime tailings from a dedicated storage facility and processing the material through the roaster and the sulphide plant.
Project 85, which is targeting an increase in recoveries to above 85%, is 35% complete, and will be commissioned in the March 2018 quarter.
“These projects are part of a comprehensive effort to improve our operations and reduce the cost of our operations while increasing efficiency and production,” Welborn said.
Capital expenditure for major growth projects is now expected to be $100 million, down from $170 million, while the exploration budget has been lifted to $20 million from $15 million after recent success in Africa.
The Nafolo discovery at Syama continues to shape up, with new results including 41m at 4.9 grams per tonne gold from 281m; 37m at 3.1gpt gold from 372m; and 13m at 6.9gpt gold from 434m.
At Bibiani in Ghana, new results included 14m at 4.36gpt gold from 454m; 30.3m at 8.92gpt gold from 499m; 23.7m at 3.15gpt gold from 426m; and 48m at 3.58gpt gold from 171m.
Resolute closed the March quarter with cash of $139.6 million, bullion of $142.3 million and listed investments worth $9 million.
“With cash, bullion and listed investments now totalling $291 million, we continue to be in a strong position to support our investments in development and exploration,” Welborn said.
“This investment will continue for the remainder of FY17 and into FY18.”
Shares in Resolute were down by 3.7% to $1.16. The ASX 200 gold sector was down by 2.7% overall.
