27/08/2013 - 12:53

Resolute cancels third stage of Syama

27/08/2013 - 12:53

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Resolute cancels third stage of Syama

Resolute Mining says it will not go ahead with the third stage of expansion at its Syama gold mine in West Africa, as the gold producer seeks to cut more costs in the wake of falling full-year profits.

The miner today said it would remove the third stage of the cutback from the Syama life-of-mine plan, following a review of the project.

Resolute previously announced plans to defer $US113 million of its total $US266 million expansionary spending, in the face of a reduced gold price and uncertain economic conditions.

Today the company said the removal of the third stage would ensure it maintained positive cash flows despite weaker commodity prices.

Resolute said it would now assess the feasibility of underground operations at Syama, to exploit the project's 2.9 million ounces of contained resources.

Also today, Resolute said its net profit had fallen to $85 million for the year to June 30, down from $105.1 million in the previous financial year.

Revenue was up 7 per cent, to $619 million, the company said.

Resolute chief executive Peter Sullivan said in a statement that the company would continue to review its operating costs and mine plans over FY2014.

"In support of this disciplined cash management approach, a pay freeze has also been implemented for all senior management positions," Mr Sullivan said.

At 12:30PM, WST, Resolute shares were down 4 per cent, at $1.03.

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