Resolute rises on repair assurances

Resolute Mining was the gold medal performer on the ASX 200 this morning, as investors welcomed news that a broken processing circuit at its Syama operations would not affect its production guidance.

On October 10, Resolute told the market a key roaster component of the sulphide processing circuit at its Syama gold mine, located in the African country of Mali, would need repairs.

Today, the miner said it expected the circuit to be fully operational in around six weeks and maintained its 2019 calendar year guidance of 400,000 ounces of gold.

“Mining activity at the new Syama underground mine is continuing during the roaster repair period,” Resolute said.

“The ramp-up of mining is progressing well with production ore now being trucked to the surface using the company’s fully automated haulage fleet.

“The company intends to offset the lost production from the sulphide circuit by processing oxide material through the Syama sulphide circuit carbon in leach infrastructure.”

Resolute estimates the total cost of the roaster repairs to be $US5 million, but stated the amount would be offset by operational cost savings from not operating the roaster during the repair period.

Its shares rose 10.5 per cent to trade at $1.32 each by noon AEDT, clawing back a chunk of the gains it lost when it fell from $1.43 to $1.20 in the four days following its announcement of the damaged roaster on October 10.

Perth-based Resolute operates three mines in addition to Syama, with Bibiana in Ghana, Ravenswood in Queensland, and Mako in Senegal.