Summary Financial Performance
Review
The reporting period is the year
ended 31 December 2024
with the corresponding reporting period being for
the year ended 31 December
2023. Unless otherwise stated, all dollar
figures are United States dollars ($).
The financial performance of
Resolute for the year
ended 31 December 2024
is summarised below:
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Profit and Loss
Analysis1
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2024
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2023
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($'000s)
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Revenue
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800,973
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631,073
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Cost of sales excluding depreciation
and amortisation
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(392,120)
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(400,378)
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Royalties
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(59,165)
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(36,313)
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Administration and other corporate
expenses
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(19,825)
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(18,450)
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Exploration expenses
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(9,483)
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(14,720)
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EBITDA2
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320,380
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161,211
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Depreciation and
amortisation
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(127,658)
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(81,044)
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Net interest and finance
costs
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(3,897)
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(11,176)
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Inventories net realisable value
movements and obsolete consumables
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26,065
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(12,665)
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Fair value movements and treasury
transactions
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(19,957)
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22,442
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Other
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(167,556)
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17,555
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Net profit before tax
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27,377
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96,324
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Income tax expense
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(40,657)
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(4,791)
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Reported net (loss)/profit after
tax
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(13,280)
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91,533
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1. Amounts presented above are
aggregate balances of certain line items presented in the
Consolidated Statement of Comprehensive Income.
2. This is a non-GAAP measure with
no standard meaning under IFRS.
Group earnings before interest,
taxation, depreciation, and amortisation (EBITDA2) of $320.4 million in 2024 was a 27%
improvement on the comparative period, primarily due to the higher
revenue of $801.0 million from gold sales of 335,708 oz (up 2%) at
an average realised price of $2,383/oz (up 24%). The higher ounces
sold reflects increased gold poured (up 3%) driven by improved
sulphide processing performance at Syama and higher production from
Mako. In 2024, Syama poured 215,934 oz with production from the
sulphide operation 8% higher. This was partially offset by 12%
lower production from the oxide operation due to processing of
stockpiles throughout the year and the impact of rains on pit
access and therefore ore availability. In 2024, gold poured at Mako
was 3% higher (123,935 oz) than the prior year despite
lower-than-expected grades and disruption to mining operations
during the rainy season.
Net interest and finance expenses
decreased in 2024 to $3.9 million (2023: $11.2 million) due to
reduced debt levels relative to 2023. During 2024 Resolute made the
final $25 million principal repayment on the Term Loan portion of
the Syndicated Facility Agreement.
Depreciation and amortisation
increased to $127.7 million (2023:$81.0 million) in 2024 due
to an increase in depreciable assets as well as in amortisation of
rehabilitation assets.
Fair value movements and treasury
transactions were $20.0 million in 2024 mainly due to
unrealised foreign exchange losses.
Other costs of $167.6 million
includes $154.8 million of indirect tax incurred in both Mali
and Senegal. This includes the Malian State Settlement Protocol. In
November 2024, Resolute signed a memorandum of understanding with
the Government of Mali, expressed as the protocol ("Protocol").
Pursuant to the Protocol, Resolute made settlement payments
totalling $159.9 million to the Government with the final payment
made on 31 December 2024.
Part of the payments (approximately
$70.0 million) made were used to offset indirect tax provisions
from prior years with the remainder being expensed in the current
period.
Discussions with the Government of
Mali are ongoing to clarify points of the Protocol which may affect
the indirect tax and tax expense charges for 2024.
Financial Position
Operating cash flows in 2024 were
very robust at $113.1 million inclusive of the $159.9 million of
settlement payments to the Malian Government. Cash flow was
significantly higher than in 2023 and was primarily driven by
stabilised operations, a focus on reducing costs, and higher
realised gold prices throughout the year.
Cash balance at 31 December 2024 was $69.3 million. Net cash1,2 increased by $52.3 million to $66.3 million at 31 December 2024 (31 December
2023: $14.0 million). Total borrowings
at 31 December 2024
was $34.8 million which are from overdraft
facilities in Mali and Senegal. Resolute has available
liquidity2 of over
$100 million from a combination of existing cash and bullion as
well as existing overdraft facilities.
In 2024, Resolute continued to
invest in the business with spending on exploration, development,
property, plant, and equipment totalling $102.9 million (2023:
$71.8 million) including outlays for the Syama Sulphide Conversion
Project, tailings facilities across both sites, the final principal
repayment on the debt facility, capitalised stripping costs and
project capital.
Syama Gold Mine, Mali
Total gold poured at Syama of
215,934 oz in 2024 was 2% higher than the prior year as both
sulphide and oxide plants maintained high utilisation and milled
near nameplate capacity of 3.93Mt versus 3.84Mt in 2023. As
expected, the combined ore tonnes mined decreased to 3.21Mt (vs
4.24Mt in 2023) due to approximately 1Mt less oxide ore being mined
in 2024. The sub-level cave underground operation maintained it
productivity achieving approximately 2.4Mt of ore mining as it
continues to benefit from productivity improvements from truck fill
and loader operations that were implemented in 2023.
Syama's All-In Sustaining Cost
(AISC)2 for 2024
was $1,497/oz. This was 1.7% higher than in 2023 and is partly
attributed to increased royalty payments as the base rate increased
from August as the gold price exceeded $2,500/oz.
Mako Gold Mine, Senegal
2024 production from Mako was
123,935 oz at an AISC2 of $1,244/oz. Gold production was higher than the prior year
but was impacted by lower-than-expected grades and disruption to
mining operations during the rainy season. Tonnes processed
steadily increased over the year with mill availability increasing
from 93% in H1 to 97% in H2. The AISC2 decreased by 9% due to lower mining
and processing costs.
About this Report
The preliminary final report
of Resolute Mining Limited
and its subsidiaries for the year ended
31 December 2024 was
authorised for issue in accordance with a resolution of
directors.
Resolute Mining Limited
(the parent) is a for profit company limited by
shares incorporated and domiciled in Australia whose shares are
publicly traded on the Australian Securities Exchange and the
London Stock Exchange.
Basis of Preparation
This report is based on accounts
that are in the process of being audited.
This report does not include all of
the notes normally included in an Annual Financial Report.
Accordingly, this report is to be read in conjunction with the
financial report for the year ended 31 December 2023 and any
public announcements made by Resolute during the reporting period
in accordance with the continuous disclosure requirements of the
Corporations Act 2001.
Rounding of Amounts
The Financial Report has been
prepared in United States dollars and all values are rounded to the
nearest thousand dollars ($'000) unless otherwise
stated.
