Resolute Mining says ongoing improvements in performance at its Syama gold mine in Mali will push its total gold production up by 4 per cent over the 2012-13 financial year, despite an increase in cash costs.
Resolute said the upgraded forecast to 415,000 ounces of gold at a cash cost of $830 per ounce would place it among the ASX’s top gold producers.
The miner’s production for FY2011-12 was 398,452 ounces at a cash cost of $750/oz.
Resolute said its cash costs had been affected by the carbon tax impacting its Ravenswood mine in Queensland, commencement of a large waste stripping at Syama and treatment of low-grade stockpiles at Golden Pride.
Chief executive Peter Sullivan said its improved production guidance came on the back of a strong operational performance at its Syama operation.
“Our robust operational cashflow and strong balance sheet allows us to internally fund a major expansion at Syama, drive our exploration programmes harder and examine other growth opportunities while considering direct returns to our shareholders,” Mr Sullivan said in a statement.
Mr Sullivan said Resolute would advance its plans to expand at Syama over the coming year, with a new mining contract set to be awarded and construction to begin on a new oxide processing circuit and associated infrastructure.
At 11:00AM, WST, Resolute stocks were up 0.37 per cent at $1.34.
