Resolute on track despite softer production

Resolute Mining says it remains on track to achieve its production guidance despite recording softer quarterly production figures and an increase in cash costs.

Resolute produced a total of 84,274 ounces of gold in the three months to September, down from 102,685oz in the June quarter.

The miner produced just 28,611oz at its Syama mine in Mali compared with 51,382oz the previous quarter, which it attributed to a major maintenance shutdown. 

This was countered by higher production at its Ravenswood mine in north-east Queensland.

Resolute's total cash costs for the quarter reached $1,269/oz, up from $1,120/oz in June.

However its all-in sustaining costs were down slightly on the previous quarter at $1,256/oz, compared with $1,373/oz in June.

The company reaffirmed its production guidance of 345,000oz at an average cash cost of $890/oz and an all-in sustaining cost of $1,175/oz for the 2014 financial year.

Resolute announced in August that it would not go ahead with a planned third stage of expansion at Syama as it looked to cut more costs in the wake of falling full-year profits.

Resolute shares were 5.5 per cent higher at 57 cents at 11:30AM WST.