Australian-listed Resolute Mining Ltd said it would beat its forecast annual gold production but has delayed the expansion of its flagship mine as the price of gold dropped below US$1,200/oz this week.
Resolute, which operates mines in Australia, Tanzania and Mali, increased its 2013 gold production guidance to 430,000oz, up from 415,000oz.
The company said it revised output after stockpiles at its Golden Pride mine in Tanzania had performed better than expected, which would continue until the end of the year.
However, Resolute said it would defer US$113 million of spending in 2013-14, which had been earmarked for the expansion of its Syama gold mine in Mali.
Subsequently, capital expenditure for the financial year has been reduced to US$61 million.
Completion of the expansion, which was expected to be commissioned mid-2014 and increase annual output at the mine to 270,000oz, has also been pushed back by up to 18 months, the company said.
Syama produced 145,197oz of gold in 2012.
“Resolute continues to critically review all operating costs and mine plans with a view to reducing the cash cost base,” the company said.
The expansion of the Syama is expected to cost US$266 million and is currently 34% complete with US$92 million spent to date.
Resolute said total group production for 2014 would fall to 345,000oz mainly due to the scheduled closure of Golden Pride, which had reached the end of its mine life.
Resolute Chief Executive Officer, Peter Sullivan said: “We are in the fortunate position of having considerable flexibility in our operations to be able to generate cash over a wide range of adverse gold price movements and we will continue to apply a cautious and disciplined approach to how we deploy it.”
The spot price of gold hit a near three year low on Friday (June 28) to US$1,181/oz – its lowest point since July 2010.
Resolute, which operates mines in Australia, Tanzania and Mali, increased its 2013 gold production guidance to 430,000oz, up from 415,000oz.
The company said it revised output after stockpiles at its Golden Pride mine in Tanzania had performed better than expected, which would continue until the end of the year.
However, Resolute said it would defer US$113 million of spending in 2013-14, which had been earmarked for the expansion of its Syama gold mine in Mali.
Subsequently, capital expenditure for the financial year has been reduced to US$61 million.
Completion of the expansion, which was expected to be commissioned mid-2014 and increase annual output at the mine to 270,000oz, has also been pushed back by up to 18 months, the company said.
Syama produced 145,197oz of gold in 2012.
“Resolute continues to critically review all operating costs and mine plans with a view to reducing the cash cost base,” the company said.
The expansion of the Syama is expected to cost US$266 million and is currently 34% complete with US$92 million spent to date.
Resolute said total group production for 2014 would fall to 345,000oz mainly due to the scheduled closure of Golden Pride, which had reached the end of its mine life.
Resolute Chief Executive Officer, Peter Sullivan said: “We are in the fortunate position of having considerable flexibility in our operations to be able to generate cash over a wide range of adverse gold price movements and we will continue to apply a cautious and disciplined approach to how we deploy it.”
The spot price of gold hit a near three year low on Friday (June 28) to US$1,181/oz – its lowest point since July 2010.
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