Resolute posts improved March quarter production despite major shutdown at Syama

Resolute Mining (ASX: RSG) is an unloved goldie, struggling to get out of the doghouse despite operating a similar production profile as mid-tier gold names like St Barbara (ASX: SBM), Westgold Resources (ASX: WGX) and Regis Resources (ASX: RRL).

March quarter at a glance 

Resolute produced 81,770 oz of gold in the March quarter, up 2% compared to last year. It was a noble effort considering major infrastructure was down for half the quarter, from 18 February onwards.

Group all-in sustaining costs was $1,383/oz, a 4% improvement compared to the last quarter, reflecting increased production and lower operational costs due to the infrastructure outage. 

During the quarter, Resolute decreased net debt by $54.1m to $174.7m and maintained $103.9m in cash and gold bullion.

Peer comparison

Resolute Mining: $353m mcap

• 2022 guidance of 345,000 oz at an AISC of $1,425/oz

Westgold Resources: $750m mcap

• FY22 production of 270,000 oz at an AISC of $1,500-1,700/oz

St Barbara: $1.1bn mcap

• FY22 guidance of 275-290,000 oz at an AISC of $1,750-1,870/oz 

Regis Resources: $1.5bn mcap

• FY22 guidance of 420-475,000 oz at an AISC of $1,425-1,500/oz

The Mali discount

Resolute operates two gold miners out of Mali and neighbouring Senegal, both with similar production profiles.

Mali has been struggling to contain a brutal jihadist insurgency which first emerged in 2012, before spreading to neighbouring states like Burkina Faso and Niger - perhaps why names like Resolute and Firefinch (ASX: FFX) struggle to fetch a fair price tag for their gold assets.

Though, this narrative isn't exactly 'new' and it does seem like Resolute has an unshakeable bearish stigma to it, down in almost every timeframe. The company's stock has fallen -13% year-to-date and -30% in the past 12-months.

Resolute Mining 12-month price chart