Resolute Mining Upbeat Despite Profit Slip

By Glenn Dyer | More Articles by Glenn Dyer

Shares in Resolute Mining dipped nearly 3% yesterday after the company released unaudited profit figures for 2016-17 that fell a bit short of expectations. The release was made to coincide with a presentation the company gave to a WA mining conference.

The shares fell more than 2.3% to end at $1.05.

In its statement Resolute played up a 6% rise in what it called “gross profit” to $177 million from $167 million in the previous financial year, and buried the sharp 32% slide in net profit before tax to $136 million from $201 million (which included some one offs).

That was after revenue from gold and sliver sales eased to $541 million from $555 million in 2015-16.

The average gold price received of $1,717 per ounce from total FY17 gold sales of 317,242 ounce.

“FY18 gold production guidance set at 300,000 ounces at an AISC of A$1,280 per ounce (US$960 per ounce

“Total gold sales of 317,242 ounces generated sales revenue of $541 million, the company said yesterday. Cash, bullion and listed investments increased 184% to $290 million at June 30, 2017.

CEO John Welborn said his company “was proud to have delivered another strong financial performance during a period of ongoing transformation of Resolute’s Syama and Ravenswood gold mines:

“Resolute has a mission to mine gold and create value. Over the last two years we have consistently outperformed on both production and costs and have generated profits of circa A$350 million. During the course of the 2017 financial year the Company’s net cash position has improved by A$173 million. Resolute is well advanced on delivering on an industry leading organic growth profile with a focus on low cost, long life gold mines.”

Resolute’s full audited accounts will be released on August 24 along with the declaration of the Company’s FY17 dividend payment.

Resolute has a gold sales-linked dividend policy which allows qualifying shareholders to receive dividends in gold and aims to deliver minimum annual dividend payments equivalent to the value of 2% of annual gold sales.

Glenn Dyer

About Glenn Dyer

Glenn Dyer has been a finance journalist and TV producer for more than 40 years. He has worked at Maxwell Newton Publications, Queensland Newspapers, AAP, The Australian Financial Review, The Nine Network and Crikey.

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