Resolute Mining, an Africa-focused gold miner, has revised its gold production target for 2023 after halting mining operations in an open pit area at its Syama gold mine in Mali.
Lowered Gold Production Expectations
Previously aiming to produce 350,000 ounces of gold in 2023, Resolute Mining now expects to produce between 330,000 to 340,000 ounces.
Adjustments Due to Unexpected Challenges
The change in the oxide mining schedule was prompted by the discovery of high carbon content in a section of the Tabakoroni open pit. This unforeseen issue resulted in decreased gold recoveries and subsequently led to the removal of the affected area from the 2023 schedule. As a result, approximately 16,000 ounces are no longer expected to be recovered in 2023.
Maintaining Cost Efficiency
Despite the adjustment in production volume, Resolute Mining’s all-in sustaining cost guidance for 2023 remains unchanged at $1,480 an ounce. This can be attributed to the reduction in costs that offsets the lower volume of output. Furthermore, the company revised its capital expenditure guidance from $88 million to around $70 million after careful budget evaluation.
Future Projections
Resolute Mining has also provided three-year forecasts for both the Syama and Mako mines in Senegal. The company expects a total gold production of 1.0 million to 1.1 million ounces for the years 2024 to 2026. Additionally, the all-in sustaining costs are projected to reach $1,175 to $1,275 per ounce by 2026.
