Resolute Mining shares were sold off on Monday, following news that ongoing challenges in Mali had impacted the goldminer’s annual production guidance.
Chris Eger-led Resolute – which has assets in Mali, Senegal, Côte d’Ivoire and Guinea – told investors that due to the “challenging operating environment in Mali”, production at the company’s Syama gold mine had been less than anticipated.
The market responded swiftly to the news that Resolute’s annual overall and Syama production guidances had been revised, closing trade down 8 per cent to $1.24.
Despite having negotiated a series of hurdles in Mali over the past few years, shareholders were forewarned of the latest impacts at Syama in early-June, when the goldminer said it was grappling with “significant security challenges” near the asset.
Due to road insecurity, there were delays in mining equipment reaching Syama, located 30km from the Mali- Côte d’Ivoire border while attaining explosives for blasting activities also proved difficult.
At the time, Resolute said despite these challenges, it was still confident of reaching the bottom end of Syama’s 195,000-210,000-ounce 2026 annual production guidance.
On Monday, the goldminer said due to its ore availability, sulphide processing and mining being impacted, Syama’s annual production guidance had been revised to 150,000-160,000oz – while its annual production guidance was also trimmed from 250,000-270,000oz to 205,000-225,000oz.
In a bid to curb the impact of explosive supply concerns, Mr Eger said the goldminer was being proactive.
“Our immediate focus is on stabilising explosives supply through the construction of our emulsion plant as well as working with our mining contractor to increase fleet availability and overall equipment,” he said.
“While the near-term impact at Syama is disappointing, the broader business remains supported by a strong gold price environment and disciplined cost management.
“These actions will enable us to continue generating positive returns and build a stronger platform for operational performance in 2027.”
Resolute said it anticipates commissioning of the emulsion plant in November.
Since the beginning of the country’s junta government in 2020, Mali has been subjected to lengthy periods of civil unrest, conflict, fuel shortages and widespread violence.
In late-2024, former Resolute MD Terry Holohan and two fellow company employees were detained following a meeting with mining and tax authorities in the capital city Bamoko.
The goldminer proceeded to sign an MOU with the government and agreed to pay US$160 million.
All three Resolute employees were subsequently freed from their detainment. A few months later, Mr Holohan resigned from the company, following a period of leave.
