RSG Resolute Mining Limited

The reporting period is the year ended 31 December 2023 with the corresponding reporting period being for the year ended 31 December 2022. Unless otherwise stated, all dollar figures are United States dollars ($).

^{1. Net tangible assets excludes right of use assets from the reported net assets in the statement of financial position.}

The financial statements are in the process of being audited. The statutory accounts for the year ended 31 December 2023 are expected to be finalised on the basis of the financial information presented by the Directors in this preliminary announcement and signed following approval by the Board of Directors. The financial information contained in this announcement does not constitute statutory accounts for the year ended 31 December 2023.

2023 Preliminary Financial Results

Resolute Mining Limited (Resolute, the Company or the Group) (ASX/LSE: RSG), is pleased to present its Preliminary Financial Results for the year ended 31 December 2023.

Highlights

·    Group 2023 revenue of $631.1 million ($651.1 million in 2022) from gold sales of 329,061 oz sold at an average price of approximately $1,920/oz (2022: $1,819/oz).

·    Group 2023 EBITDA¹ of $161.6 million ($148.1 million in 2022) driven by higher gold price and lower costs with a Group All-In Sustaining Cost¹ (AISC) of $1,470/oz (2022: $1,498/oz).

·    Net Cash¹ of $14.0 million (up from net debt of $31.6 million at the end of 2022).

·    2024 Group production guidance remains between 345,000 - 365,000 oz at an AISC of $1,300 -1,400/oz as per the January 31^st announcement.

·    2024 Group capital expenditure guidance remains between $115-145 million split between Syama, Mako and Exploration of $90-110 million, $15-20 million, and $10-15 million respectively, as per the January 31^st announcement.

Note: Unless otherwise stated, all dollar figures are United States dollars ($).

             ¹ This is a non-GAAP measure with no standard meaning under IFRS.

Terry Holohan, CEO and Managing Director, commented,

"In 2023 we returned to profitability showing the results of our ongoing business turnaround. During the year we became cash positive, declared a maiden Ore Reserve at Syama North and approved the first phase of expansion at Syama.

Resolute achieved an EBITDA of $161.6 million, 9% higher than in 2022, driven by higher gold prices and lower operating costs across both sites thanks to our ongoing cost saving initiatives. We also managed to continue strengthening the balance sheet with net debt being reduced by $45.6 million resulting in a net cash position of $14.0 million by the end of 2023.

Our key focus for 2024 is to continue the sustainable reduction in costs across the Group, deliver the Syama Phase I Expansion and progress a near-mine satellite resource to extend the Mako mine beyond 2026."

Resolute will be releasing full year audited financial results by the end of the first quarter according to reporting standards. The audited financial results with be released alongside our 2023 Annual Report.

Summary Financial Performance Overview

The reporting period is the year ended 31 December 2023 with the corresponding reporting period being for the year ended 31 December 2022. Unless otherwise stated, all dollar figures are United States dollars ($).

The financial performance of Resolute for the year ended 31 December 2023 is summarised below:

^{Amounts presented above are aggregate balances of certain line items presented in the Consolidated Statement of Comprehensive Income.}

¹ This is a non-GAAP measure with no standard meaning under IFRS.

Group Revenue of $631.1 million in 2023 was 3% lower than the comparative period as the increase in the average realised gold price of $1,920/oz (2022: $1,819/oz) was offset by an expected decrease in gold sales of 329,061oz compared to prior year (357,447oz).

Cost of sales excluding depreciation and amortisation decreased to $399.4 million compared to $433.9 million in 2022. This is due to our ongoing cost reduction initiatives as well as the reversal of historic provisions related to the tax exoneration timing dispute in Senegal resulting in a onetime non-cash benefit of $16.4 million.

Administration and other corporate expenses were higher in 2023 due to one-off expenses because of the relocation of select back-office support functions from Perth, Australia to London, United Kingdom to align time zones with operations.

Net interest and finance expenses decreased in 2023 to $11.2 million (2022: $15.3 million) due to reduced debt levels relative to 2022. During 2023 Resolute made $55.0 million in principal repayments ($30.0 million and $25.0 million in Q1 and Q3 respectively). $25.0 million remains outstanding on the Term Loan portion of the Syndicated Facility Agreement and is due to be paid in March 2024.

Other income of $22.5 million has increased from a $10.6 million expense in 2022 due to an $23.5 million increase due to related to the deferred contingent consideration receivable relating to the sale of Ravenswood, as all related performance hurdles are expected to be met prior to the milestone period.

Fair value movements and treasury transactions were $83.7 million in 2023 mainly due to unrealised foreign exchange gains associated with intercompany loans.

Liquidity Summary

Net cash at 31 December 2023 of $14.0 million. This represents a $45.6 million reduction from the $31.6 million net debt position at the end of 2022.

Available liquidity of $165.2 ($158.0 million in the prior quarter) includes cash and gold sales receivable of $67.6 million, bullion of $17.6 million, and the undrawn RCF of $80.0 million. Total borrowings at 31 December 2023 were $71.2 million, comprising $25.0 million on the Term Loan Facility and $46.2 million on the overdraft facilities in Mali.

2023 Operational Review

In 2023, a total of 330,994 ounces (oz) of gold were produced (poured) at an AISC of $1,469/oz with total gold sales of 329,061oz at an average realised price of $1,920/oz. Further details by operation are provided below.

Syama Gold Mine, Mali

From the sulphide operation 151,256 oz of gold was poured in 2023 which was 6% lower than the prior year despite the similar mining and milling metrics. Gold production in 2022 was positively impacted by over 21koz of residual gold (GIC) processed from legacy ponds containing high-grade sulphide concentrate material which had been largely exhausted by Q2 2023. The approximate AISC at the Syama Sulphide of $1,390/oz for 2023 was 1% lower than in 2022 ($1,410/oz) despite 10koz fewer ounces being produced and 21 koz being released from GIC in 2022. The decrease in AISC in 2023 is attributed to the ongoing cost saving initiatives.

From the oxide operation in 2023 59,891 oz of gold was poured, marginally below what was achieved in 2022 (62,165oz). In 2023 the oxide operation saw an increase in tonnes processed due to improvements in the crushing and milling circuits and the softer nature of the material processed. The decreased oxide recovery from 2022 was due to pockets of 'transitional' ores being processed in Q2 2023 from the final cuts in the Tabakoroni pits containing marginally higher levels of organic carbon. The approximate AISC for Syama Oxide in 2023 of $1,631/oz was 9% lower than in 2022 ($1,801/oz), despite lower ounces produced, due to the ongoing cost saving initiatives.

Mako Gold Mine, Senegal

Production of 119,847oz was above the 117,000 oz guidance. Lower gold production was expected in 2023 due to the major  focus on waste stripping. Stage 6 was completed in Q4 and mining of higher-grade Stage 7 ore commenced in Q4 as did in-pit dumping of waste approximately three months ahead of schedule, having a positive impact on costs going forward. The approximate 2023 AISC of $1,373/oz was below guidance of $1,470/oz due to cost improvements.