Resolute strengthens US$ gold hedge book
8 August 2019
Resolute Mining Limited
(Resolute or the Company)
Resolute strengthens US$ gold hedge book
30,000 ounces forward sold at average of US$1,519/oz
Resolute Mining Limited (Resolute or the Company) (ASX/LSE: RSG) advises that the Company has forward sold an additional 30,000 ounces of gold at an average price of US$1,519 per ounce in scheduled monthly deliveries of 5,000 ounces between January 2020 and June 2020.
Resolute has taken advantage of recent gold price strength to extend the Company's US dollar denominated gold hedge position. The objective of this hedging is to secure 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 consists of 50,000 ounces of gold forward sold at an average price of US$1,337 per ounce in monthly deliveries scheduled to December 2019 (see ASX Announcement dated 6 June 2019).
Resolute's total gold hedge book as at 8 August 2019, including today's new US dollar gold hedges, consists of 190,000 ounces in monthly deliveries out to June 2020 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:
"We continue to actively manage our gold sales and undertake near term hedging to take advantage of gold price volatility, maximise revenues, and protect the Company's balance sheet. 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. With long mine lives, large gold inventories, and an industry leading production growth profile, Resolute remains strongly leveraged to further upside in gold prices."
* Excludes 24,400 ounces forward sold by Toro Gold at an average price of US$1,356 in monthly deliveries to January 2020.
For further information, contact:
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John Welborn Managing Director & CEO
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Jeremy Meynert General Manager - Business Development & Investor Relations
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Contact Information
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Resolute John Welborn, Managing Director & CEO Jeremy Meynert, General Manager - BD & IR Telephone: +61 8 9261 6100 Email: contact@rml.com.au
Berenberg (UK Corporate Broker) Matthew Armitt/Detlir Elezi Telephone: +44 20 3207 7800
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Tavistock (UK Investor Relations)
Jos Simson / Charles Vivian / Emily Fenton /
Annabel de Morgan
Telephone: +44 207 920 3150 / +44 778 855 4035
Email: resolute@tavistock.co.uk
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 12 months to 31 December 2019 has been updated to 400,000oz of gold at an AISC of US$960/oz.
Resolute owns four gold mines. Its 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 is currently commissioning 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 Resolute with significant production growth potential. Resolute has a pathway to annual gold production well in excess of 500,000 ounces from a Global Mineral Resource base of more than 18 million ounces of gold.
Resolute trades on the Australian Securities Exchange (ASX) and the London Stock Exchange (LSE) under the ticker RSG.
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ASX/LSE: RSG Capital Summary Fully Paid Ordinary Shares: 888,551,851 Current Share Price: Market Capitalisation: FY19 Guidance:
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Board of Directors Mr Martin Botha Non-Executive Chairman Ms Yasmin Broughton Non-Executive Director Mr Mark Potts Non-Executive Director Ms Sabina Shugg Non-Executive Director Mr Peter Sullivan Non-Executive Director
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Contact John Welborn Managing Director & CEO Jeremy Meynert GM - BD & IR |
