Resolute Mining, a West African gold producer, anticipates a decline in gold output and an increase in production costs this year due to the depletion of its Mako mine in Senegal and the implementation of new fiscal regulations in Mali. The company expects to produce between 275,000 and 300,000 ounces of gold at an all-in sustaining cost of US$1650-1750 per ounce in 2025. This is down from 340,000 ounces produced in 2024 at an AISC of $1476 per ounce. The recent changes in Mali's fiscal regime, including increased corporate tax, removal of fuel duty exemptions, and higher royalty rates, have significantly impacted the company's operations, leading to a capital expenditure dilemma and cash flow concerns.
West Africa gold producer Resolute Mining is set to produce fewer ounces this year at higher costs as its Mako operation in Senegal depletes and costs rise in Mali due to the change in fiscal regime.Guidance for 2025 is 275,000-300,000 ounces at all-in sustaining costs of US$1650-1750/oz.Last year, Resolute produced 340,000oz at AISC of $1476/oz, underpinned by output from the flagship Syama operation in Mali that yielded about 216,000oz at AISC of $1497/oz.
3 million at the end of December.In trying to see what can be rescued from the rubble in Mali, Resolute said "mine sequencing at Syama has been optimised for near- and medium-term cash generation while the company assesses its longer-term capital plans".It has already delayed some of its planned spending on the circa US$100 million sulphide conversion project at Syama that is targeted to increase processing capacity from 2.4Mtpa to 4Mtpa.
Mining GOLD PRODUCTION COSTS RESOLUTE MINING MALI FISCAL POLICY
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