Resolute Mining has broken the ranks of its fellow gold producers, reaffirming its yearly production guidance after a strong performance in the March quarter and claiming the falling gold price is creating acquisition opportunities.
Resolute today said total gold production for the March quarter was 110,227 ounces, at an average cash cost of $831 per ounce.
The miner said it was on track to hit its full year target of 415,000 ounces of gold produced.
Production at Resolute’s Syama mine in Mali for the quarter was a record 53,340 ounces, at $749/oz, while the company’s Ravenswood operation produced 38,280 ounces at $741/oz.
Resolute’s Golden Pride mine in Tanzania produced 18,607oz at $1,193/oz.
Resolute chief executive Peter Sullivan said the quarterly results were very pleasing.
“We are feeling that performance to date is probably slightly ahead of where we were targeting at this time,” Mr Sullivan told an analyst briefing today.
Mr Sullivan, however, said the volatile market conditions caused by the falling value of gold would lead the miner to a review of its current capital expenditure plans.
“We do see a number of opportunities out there that may represent better investments for us than our cap-ex program, so we are reviewing the situation and thinking about where our best spend will be over the next three to six months,” Mr Sullivan said.
The miner’s results are in stark contrast to its peers, with gold miners across Western Australia pulling back on expansion plans, cutting costs and reducing production forecasts.
Tanami Gold became the latest miner yesterday to ease off on its operations, placing its Coyote mine in the Kimberley in mothballs.
Global Miner Newcrest also announced yesterday it cut up to 150 jobs at its Melbourne and Brisbane in March, a result of the falling gold price and weak prevailing conditions in the gold market.
Evolution Mining said yesterday that its cash costs had jumped more than 20 per cent in the March quarter, while Silver Lake Resources also reported an increase in production costs.
The gold price has rebounded slightly this week after falling $US300 an ounce in a fortnight to below $US1,400/oz.
At 10:00AM, WST, gold bullion was fetching $US1,422.80 in Sydney.
Resolute Mining shares finished the day’s trade up 6 per cent, at 99.7 cents.
