Resolute Mining Ltd (ASX: RSG) is a gold mining company that finds, develops and operates gold mines. Resolute owns four gold mines with operations in Australia and Africa. Resolute has a market capitalisation of A$1.1 billion.
What is the recent update on the Syama project?
Resolute management announced on Friday (25 October 2019) that at the Syama gold mine the key component of the Syama sulphide processing circuit is expected to be repaired and fully operational in approximately six weeks time. The roaster was taken offline in early October due to the detection of a crack in the main external shell. The estimated total cost of this repair is at US$5 million.
Resolute management mentioned that they are not making any immediate change to its existing FY19 gold production guidance for the twelve months to 31 December 2019 of 400,000 ounces of gold. However, an update to the FY19 cost guidance will be disclosed in the company’s September quarterly activities report that is scheduled to be released on 31 October 2019. Investors could closely monitor the company’s announcements for further developments.
What is the market reaction?
The market reaction to Resolute update on Friday was very positive. Resolute share price was up 9.5% and is currently trading at A$1.310 (Friday 25 October 4.00 pm). Resolute has P/E ratio in the low thirties and an annual dividend yield of 1.5% (unfranked).
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