The Resolute Mining Ltd (ASX: RSG) share price will be on watch after it released its September 2019 quarter update.
Resolute has more than 30 years of experience as an explorer, developer and operator of gold mines in Australia and Africa and has produced more than 8 million ounces of gold.
Resolute Mining’s Quarterly Update
The large gold miner reported that its gold production was 103,201 ounces, which was 25,069 ounces higher than the June 2019 quarter, or an increase of 32%.
Gold production from the Syama gold mine was 45,804 ounces, with 33,074 ounces from the Syama oxide circuit and 12,730 ounces from the Syama sulphide circuit. The Syama sulphide circuit achieved recoveries in excess of the 85% target.
Resolute Mining said that a major Syama ramp-up milestone was achieved with completion of automation system site acceptance testing.
During this quarter, automated loaders successfully collected ore from the bottom of ore passes on the 1055 level and loaded automated trucks via a split-level loading facility.
The miner also disclosed that automated tracks travelled up the underground decline under laser guidance before changing to satellite guidance upon exiting the portal. The traffic management system was also tested. Resolute Mining said this is the world’s most advance automation mining system.
Resolute’s newest mine, the Mako Gold Mine produced 44,191 ounces in the quarter. Management said Mako’s processed tonnages, grades and recoveries were ahead of budget.
The Ravenswood Gold Mine produced 13,206 ounces for the quarter, and it has commenced the first stage of the expansion project. It’s aiming for 200,000 ounces of annual gold production from 2022.
Resolute Mining’s gold production for the first three quarters of 2019 amounts to 279,438 ounces. The company has reaffirmed its FY19 guidance of 400,000 ounces at an all-in sustaining cost of US$960 ounces.
In early trading the Resolute Mining share price has gone up around 1%, so investors seem to like this update. But gold miners are linked to the gold price, which is unpredictable. I prefer to buy shares of reliable businesses like the ones in the free report below.
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