RESOLUTE MINING LIMITED (RSG)
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04/03/2025

1

Outperform

$0.45

2.27%

Resolute Mining reported preliminary 2024 results which met Macquarie's expectations, with 91% year-on-year earnings (EBITDA) growth driven by higher gold prices, stable costs, and marginally higher production.

The US$160m payment to the Malian government impacted net profit after tax, the broker highlights, causing a loss of -US$13m instead of the expected 2025 expense.

Management retained 2025 guidance of 275-300koz at an all-in-sustaining-cost of US$1,650-1,750/oz.

Net cash closed at US$25m for year end, beating consensus by 37%. The broker lowers 2024/2025 EPS forecasts by -11%/-14% due to the earlier mentioned expense recognition.

The target price reduces -4% to $0.45, with Outperform rating maintained.

FORECAST
Macquarie forecasts a full year FY25 dividend of 0.00 cents and EPS of 9.04 cents.
Macquarie forecasts a full year FY26 dividend of 0.00 cents and EPS of 3.06 cents.

01/11/2024

1

Buy

$1.75

297.73%

Resolute’s September quarter production totalled 85koz at a cost (AISC) of US$1,452/oz, falling short of Canaccord’s estimate of 90koz at US$1,354/oz due to weather impacts at Mako and lower grades at Syama.

Cash holdings increased 31% quarter-on-quarter to US$188m due the earlier receipt of tranche 2 of Ravenswood sale proceeds and higher gold sales, explain the analysts.

Group guidance remains at 345-365koz, with Mako’s forecast lowered to 130koz due to ongoing challenges.

The Syama expansion, expected mid-2025, aims to increase production by over 55% to 250koz annually.

Canaccord Genuity reduces the target price to $1.75 from $1.85, maintaining a Buy rating.

FORECAST
Canaccord Genuity forecasts a full year FY25 dividend of 0.00 cents and EPS of 15.32 cents.