Resolute shares up on production

Perth gold producer Resolute Mining has released a positive production report, which raised its share price by nearly 7 per cent.

Resolute said it produced 342,773 ounces of gold in the last financial year, just outside its 350,000oz target, with cash costs totaling up to $922/oz, just above its $890/oz target, which was the result of a lower than expected exchange rate. 

The company said production for the next financial year was anticipated to be lower due to the closure of its Golden Pride mine in Tanzania after 15 years of production, and slightly lower grade ore grade expected from its Ravenswood mine in Queensland. 

However Resolute said increased production at its Syama mine in Mali, which will be commissioned in January 2015, would help to offset falling production forecasts.

“With Golden Pride at an end, the company now moves into a transitional year in 2015 with oxide production to come on stream at Syama,” Resolute chief executive officer Peter Sullivan said.

“We continue to pursue some exciting growth opportunities to extend mine life at our existing operations whilst also progressing work on potential underground production at Bibiana in Ghana, the latest addition to our asset base.” 

Resolute shares last traded at 62.5 cents per share at 2:30pm.