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Resolute Mining Ltd – Syama Sulphide Circuit Update

Jordan Baird

Jordan Baird is the head ASR Wealth Advisers client services desk and has been with the organisation since 2017. He first started investing in his early years. While he believes that investors should leave no stone unturned he has a particular interest in trading based on broad macroeconomic trends along with specific analysis of innovative up-and-coming companies.

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.

Resolute Mining - Syama Sulphite Circuit

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).

 


 

Disclaimer:

This article has been prepared by the Australian Stock Report Pty Ltd (AFSL: 301 682. ABN: 94 106 863 978)

(“ASR”). ASR is part of Amalgamated Australian Investment Group Limited (AAIG) (ABN: 81 140 208 288 Level 13, 130 Pitt Street, Sydney NSW 2000).

This article is provided for informational purpose only and does not purport to contain all matters relevant to any particular investment or financial instrument. Any market commentary in this communication is not intended to constitute “research” as defined by applicable regulations. Whilst information published on or accessed via this website is believed to be reliable, as far as permitted by law, we make no representations as to its ongoing availability, accuracy or completeness. Any quotes or prices used herein are current at the time of preparation. This document and its contents are proprietary information and products of our firm and may not be reproduced or otherwise disseminated in whole or in part without our written consent unless required to by judicial or administrative proceeding. The ultimate decision to proceed with any transaction rests solely with you. We are not acting as your advisor in relation to any information contained herein. Any projections are estimates only and may not be realised in the future.

ASR has no position in any of the stocks mentioned.

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