TIDMRSG
RNS Number : 0566K
Resolute Mining Limited
22 August 2023
22 August 2023
Appendix 4D
Half Year Report for the six months ended 30 June 2023
Reporting Period
The reporting period is for the half year ended 30 June 2023
with the corresponding reporting period being for the six months
ended 30 June 2022.
Results for Announcement to the Market
30 June 30 June Increase Increase
2023 2022
$'000 $'000 $'000 %
---------------------------------------- --------- --------- ---------- -----------
Revenues from ordinary activities 329,499 317,658 11,841 4%
Earnings before interest, tax,
depreciation, amortisation and
fair value adjustments (EBITDA) 101,378 78,416 22,962 29%
Profit/(loss) after income tax 87,679 (24,146) 111,825 463%
Profit/(loss) from ordinary activities
after income tax attributable to
members/net profit for the year 73,842 (24,286) 98,128 404%
---------------------------------------- --------- --------- ---------- -----------
Dividend Information
Amount per share Franked amount per share
$ $
------------------------------------------------------ ----------------- -------------------------
Interim dividend for the half-year ended 30 June 2023 Nil Nil
------------------------------------------------------ ----------------- -------------------------
Net Tangible Assets
30 June 2023 31 December 2022
$ $
------------------------------- -------------- ------------------
Net tangible assets per share 0.25 0.22
------------------------------- -------------- ------------------
This half year report should be read in conjunction with the
most recent annual financial report for the year ended
31 December 2022. All dollar figures are United States dollar
($) currency unless otherwise stated.
Corporate Directory
Directors Share Registry
Non-Executive Chairman Martin Botha Computershare Investor Services
Managing Director & CEO Terence Pty Limited
Holohan Level 11, 172 St Georges Terrace
Non-Executive Director Simon Jackson Perth, Western Australia 6000
Non-Executive Director Mark Potts Home Exchange
Non-Executive Director Sabina Shugg Australian Securities Exchange
Non-Executive Director Adrian Reynolds Level 40, Central Park
Non-Executive Director Keith Marshall 152 St Georges Terrace
Company Secretary Perth, Western Australia 6000
Richard Steenhof
Registered Office Quoted on the official lists of
Level 2, Australia Place the
15-17 William Street Australian Securities Exchange (ASX)
Perth, Western Australia 6000 and London Stock Exchange (LSE)
PO Box 7232 Cloisters Square ASX/LSE Ordinary Share Code: "RSG"
Perth, Western Australia 6850 Securities on Issue (30/06/2023)
Telephone: + 61 8 9261 6100 Ordinary Shares 2,129,006,569
Facsimile: + 61 8 9322 7597 Performance Rights 23,795,006
Email: contact@rml.com.au Auditor
Australian Business Number Ernst & Young
ABN 39 097 088 689 Ernst & Young Building
Website 11 Mounts Bay Rd
Resolute Mining Limited maintains Perth, Western Australia 6000
a website where all announcements
are available: www.rml.com.au Shareholders wishing to receive
copies of Resolute's ASX announcements
by e-mail should register their
interest by contacting the Company
at contact@rml.com.au
Table of Contents
Directors' Report
Auditor's Independence Declaration 9
Consolidated Statement of Comprehensive Income 10
Consolidated Statement of Financial Position
Consolidated Statement of Changes in Equity
Consolidated Cash Flow Statement
Notes to the Financial Statements
Directors' Declaration 23
Directors' Report
Your directors present their half year report on the
consolidated entity (referred to hereafter as the "Group" or
"Resolute") consisting of Resolute Mining Limited and the entities
it controlled at the end of or during the half year ended 30 June
2023 (H1 2023).
Corporate Information
Resolute Mining Limited ("Resolute" or "the Company") is a
company limited by shares that is incorporated and domiciled in
Australia.
Directors
The names of the Company's directors in office during the entire
half year period and until the date of this report are set out
below. Directors were in office for this entire period unless
otherwise stated.
Martin Botha (Non-Executive Chairman)
Terence Holohan (Managing Director and CEO)
Simon Jackson (Non-Executive Director)
Mark Potts (Non-Executive Director)
Sabina Shugg (Non-Executive Director)
Adrian Reynolds (Non-Executive Director)
Keith Marshall (Non-Executive Director) (appointed 19 June
2023)
Company Secretary
Richard Steenhof
Key Highlights
Key highlights for half year ended 30 June 2023 include:
-- Production (gold poured) for H1 of 176,629 ounces (oz) compared to 170,903oz in H1 2022.
-- All-In Sustaining Cost (AISC) of $1,469/oz for the first half
of the year, which is stable compared H1 2022.
-- H1 gold sales of 173,058oz at an average realised gold price
of $1,906/oz compared to 173,717oz at an average realised gold
price of $1,824/oz in H1 2022.
-- Cash generation of $17.3 million excluding interest payments
and working capital movements. H1 capital expenditure of $36.7
million with non-sustaining capital of $18.6 million, sustaining
capital expenditure of $15.6 million, and exploration spend of $2.5
million.
-- Net Debt of $17.2 million (down 14% from $19.9 million in
Q1-2023), including Cash and Bullion of $85.7 million. Available
liquidity (Cash, Bullion and undrawn Revolving Credit Facility
(RCF)) of $165.7 million.
Operations Review
In H1 2023, a total of 176,630oz of gold was produced (poured)
at an All-In Sustaining Cost (AISC) of $1,469/oz with total gold
sales of 173,058oz at an average realised price of $1,906/oz.
During H1 2023, 2.9 million tonnes (Mt) of ore was milled at an
average grade of 2.25 grams per tonne (g/t Au) for 178,795oz of
gold recovered.
Directors' Report
Production and Cost Summary for H1 2023
Units Syama Syama Syama Mako Group
sulphide oxide Total Total
UG Lateral Development m 2,191 - 2,191 - 2,191
------- ----------- ----------- ----------- ----------- -----------
UG Vertical Development m 20 - 20 - 20
------- ----------- ----------- ----------- ----------- -----------
Total UG Development m 2,211 - 2,211 - 2,211
------- ----------- ----------- ----------- ----------- -----------
UG Ore Mined t 1,153,689 - 1,153,689 - 1,153,689
------- ----------- ----------- ----------- ----------- -----------
UG Grade Mined g/t 2.87 - 2.87 - 2.87
------- ----------- ----------- ----------- ----------- -----------
OP Operating Waste BCM - 3,932,837 3,932,837 3,765,640 7,698,477
------- ----------- ----------- ----------- ----------- -----------
OP Ore Mined BCM - 470,994 470,994 472,184 943,178
------- ----------- ----------- ----------- ----------- -----------
OP Grade Mined g/t - 1.69 1.69 1.91 1.80
------- ----------- ----------- ----------- ----------- -----------
Total Ore Mined t 1,153,689 972,309 2,125,998 1,334,922 3,460,920
------- ----------- ----------- ----------- ----------- -----------
Total Tonnes Processed t 1,074,980 809,849 1,884,829 1,047,790 2,932,619
------- ----------- ----------- ----------- ----------- -----------
Grade Processed g/t 2.94 1.55 2.34 2.09 2.25
------- ----------- ----------- ----------- ----------- -----------
Recovery % 79.2 82.9 80.7 92.0 84.8
------- ----------- ----------- ----------- ----------- -----------
Gold Recovered oz 80,505 33,327 113,832 64,963 178,795
------- ----------- ----------- ----------- ----------- -----------
Gold in Circuit Drawdown/(Addition) oz (775) (271) (1,046) (1,120) (2,166)
------- ----------- ----------- ----------- ----------- -----------
Gold Poured oz 79,730 33,056 112,786 63,843 176,629
------- ----------- ----------- ----------- ----------- -----------
Gold Bullion in Metal
Account Movement (Increase)/Decrease oz (1,909) (986) (2,895) (677) (3,572)
------- ----------- ----------- ----------- ----------- -----------
Gold Sold oz 77,822 32,070 109,892 63,166 173,058
------- ----------- ----------- ----------- ----------- -----------
Achieved Gold Price $/oz - - - - 1,906
------- ----------- ----------- ----------- ----------- -----------
Mining $/oz 489 561 510 719 586
------- ----------- ----------- ----------- ----------- -----------
Processing $/oz 517 602 542 396 489
------- ----------- ----------- ----------- ----------- -----------
Site Administration $/oz 155 297 197 119 169
------- ----------- ----------- ----------- ----------- -----------
Site Operating Costs $/oz 1,161 1,460 1,249 1,234 1,244
------- ----------- ----------- ----------- ----------- -----------
Royalties $/oz 111 109 110 95 107
------- ----------- ----------- ----------- ----------- -----------
By-Product Credits
+ Corp Admin $/oz (3) (3) (3) - 38
------- ----------- ----------- ----------- ----------- -----------
Total Cash Operating
Costs $/oz 1,269 1,566 1,356 1,329 1,389
------- ----------- ----------- ----------- ----------- -----------
Sustaining Capital $/oz 103 218 137 3 88
------- ----------- ----------- ----------- ----------- -----------
Non-cash adjustments $/oz 9 (17) 1 (24) (8)
------- ----------- ----------- ----------- ----------- -----------
All-In Sustaining Cost
(AISC)
AISC is calculated
on gold poured $/oz 1,381 1,767 1,494 1,308 1,469
------- ----------- ----------- ----------- ----------- -----------
Directors' Report
Syama Gold Mine
At the Syama Gold Mine in Mali (Syama), gold production for 6
months to 30 June 2023 was 112,787oz at an AISC of $1,494/oz.
Sulphide Operations
During the six months ending 30 June 2023, gold production from
the Syama sulphide circuit was 79,731oz at an AISC of $1,381/oz.
Gold production increased by 9% in H1 2023 compared to H1 2022
despite maintenance carried out on the tertiary crusher which has
been scheduled for replacement in H2 2023. The improved performance
was due to higher grades milled and higher plant throughput
achieved prior to the crusher breakdown. Syama sulphide AISC per
ounce poured decreased by 2% due to steps being taken to
sustainably reduce cost at the operations.
Oxide Operations
During the first half of 2023, production was 33,056oz at an
AISC of $1,767/oz. Ore tonnes continued to be sourced from the
Tabakoroni Splay pit and Syama North at Paysans and Folona.
Preparatory activities involving stripping and grade control were
stepped up during the first half of the year in readiness to mine
the A21 pit.
During H1 2023, total tonnes processed from the Syama oxide
circuit was 9% higher compared to H1 2022 despite the lower
recovery rate on account of the higher organic carbon content in
the mill feed during the second quarter of the year - the mining of
this ore was immediately curtailed.
Exploration
Total exploration expenditure for the first half of 2023 was
$9.0 million (made up of $2.5 million of capital and $6.5 million
of exploration expenditure) with the majority of the focus on Syama
North.
An updated Mineral Resource estimate for Syama North was
announced on 19 January 2023 with an increase to 34 million tonnes
at 2.9g/t Au for 3.18 million ounces.
The infill drilling program at Syama North, which commenced in
early 2023, has continued throughout the year with the strategy of
converting inferred resources to indicated category. This program
was completed in late June and after the return of analytical
results, the Mineral Resource Estimate will be updated. Resolute is
expected to provide an updated Mineral Resource model for Syama
North during Q3 2023 which will further feed and optimise the Syama
Phase I Expansion study.
Diamond drilling continues at Syama North with the focus now on
expanding the Mineral Resource, given the recent completion of the
in-fill drilling for Ore Reserves, as the deposit remains open
along strike and down dip.
Oxide Mineral Resources exploration has been ongoing throughout
2023 in Syama with Reverse Circulation drilling on several newly
identified targets. This program will continue for the remainder of
2023.
Exploration activities continued in Senegal with drilling
programs carried out on the Petowal Mining Lease and the Laminia
Joint Venture which is located 10km east of Petowal.
In Guinea, surface exploration programs undertaken in the past
two years have identified a strong gold anomaly in the western
portion of the Niagassola Research Permit which is now named the
Mansala prospect. Reverse Circulation (RC) drilling at the Mansala
Prospect has intersected encouraging gold mineralisation. Drilling
continues, and a more detailed report will be announced in Q3
2023.
Mako Gold Mine
During H1 2023, production from the Mako Gold Mine was 63,843oz
at an AISC of $1,308/oz. During H1 2023, production decreased by 5%
due to the planned focus on mining the medium grade sections of the
ore body while the scheduled waste stripping continued to expose
higher grade ore to be mined later in the year.
Directors' Report
Financial Overview
Profit and Loss Analysis H1 2023 H1 2022
($'000s) Group Group
-------------------------------------------------------------- ---------- ----------
Revenue 329,499 317,658
Cost of sales excluding depreciation and amortisation (182,551) (193,116)
Royalties and other operating expenses (29,777) (30,030)
Administration and other corporate expenses (9,081) (7,562)
Share-Based payments expense (344) (291)
Exploration and business development expenditure (6,368) (8,187)
---------- ----------
EBITDA 101,378 78,472
-------------------------------------------------------------- ---------- ----------
Depreciation and amortisation (47,459) (43,566)
Net interest and finance costs (7,121) (5,725)
NRV inventory movements and unrealised treasury transactions 37,924 (35,440)
Other 352 3,702
Indirect tax expense (5,273) (5,451)
-------------------------------------------------------------- ---------- ----------
Net profit/ (loss) before tax 79,801 (8,008)
-------------------------------------------------------------- ---------- ----------
Income tax benefit/ (expense) 7,878 (16,138)
-------------------------------------------------------------- ---------- ----------
Net income/ (loss) after tax 87,679 (24,146)
-------------------------------------------------------------- ---------- ----------
Financial Performance
Revenue for H1 2023 was $329.5 million, from gold sales of
173,058oz at an average realised price of $1,906/oz. Earnings
before interest, tax, depreciation, and amortisation (EBITDA) was
$101.4 million. In H1 2023 the Group reversed historic provisions
related to the tax exoneration in Senegal totalling $26.1 million.
This resulted in an increase of $16.4 million to EBITDA relating to
the reversal of operating costs. Resolute reported a Net Profit
After Tax of $87.7 million. Resolute continued to invest in the
business in H1 2023 with capital expenditures on development,
property, plant and equipment totalling $36.7 million, and
exploration and evaluation expenditure of $4.6 million.
Directors' Report
Financial Position
As at 30 June 2023, Resolute had cash of $65.8 million and
bullion with a market value of $20.0 million. In addition at 30
June 2023 the Company had listed investments with a market value of
$8.5 million and Promissory notes and contingent consideration
receivable carried at $53.4 million. The Group's net debt inclusive
of the syndicated facilities and in-country overdraft facilities
was $17.2 million at 30 June 2023. Resolute also held receivables
of $17.6 million associated with Malian VAT paid and
refundable.
Significant Events After Balance Date
Since the end of the period and to the date of this report, no
matter or circumstance has arisen that has significantly affected,
or may significantly affect, the operations of the Group, the
results of operation or the state of affairs of the consolidated
group in subsequent periods.
Auditor's Independence
Refer to page 9 for a copy of the Auditor's Independence
Declaration to the Directors of Resolute Mining Limited.
Rounding
Resolute is a company of the kind specified in Australian
Securities and Investments Commission Corporations (Rounding in
Financial Directors' Reports) Instrument 2016/191. In accordance
with that Instrument, amounts in the financial report and the
Directors' Report have been rounded to the nearest thousand dollars
unless specifically stated to be otherwise.
Signed in accordance with a resolution of the directors.
Terence Holohan
Managing Director & CEO
Perth, Western Australia
22 August 2023
AUDITOR'S INDEPENCE DECLARATION
Declaration available on full report at www.rml.com.au
Consolidated Statement of Comprehensive Income
For the half year ended 30 June 2023 For the half year ended 30 June 2022
Note $'000 $'000
Revenue from contracts with
customers for gold and
silver sales 3 329,499 317,658
Costs of production relating
to gold sales 3 (182,551) (193,116)
------------------------------ ------ -------------------------------------- --------------------------------------
Gross profit before
depreciation, amortisation
and other operating costs 146,948 124,542
------------------------------ ------ -------------------------------------- --------------------------------------
Depreciation and amortisation
relating to gold sales 3 (46,538) (42,411)
Other operating costs
relating to gold sales 3 (29,777) (30,030)
------------------------------ ------ -------------------------------------- --------------------------------------
Gross profit from operations 70,633 52,101
------------------------------ ------ -------------------------------------- --------------------------------------
Interest income 3 1,411 3,743
Other income/ (expense) 3 (104) 4,549
Exploration and business
development expenditure 3 (6,368) (8,187)
Administration and other
corporate expenses 3 (9,081) (7,562)
Share-based payments expense 3 (344) (291)
Treasury - realised gains 3 456 51
NRV inventory movements and
unrealised treasury
transactions 3 37,924 (35,440)
Share of associates' losses 3 - (898)
Depreciation of non-mine site
assets 3 (921) (1,155)
Finance costs 3 (8,532) (9,468)
Indirect tax expense 3 (5,273) (5,451)
Profit/(loss) before tax 79,801 (8,008)
------------------------------ ------ -------------------------------------- --------------------------------------
Tax benefit/(expense) 3&5 7,878 (16,138)
------------------------------ ------ -------------------------------------- --------------------------------------
Profit/(loss) for the period 87,679 (24,146)
------------------------------ ------ -------------------------------------- --------------------------------------
Profit/(Loss) attributable
to:
Members of the parent 73,842 (24,286)
Non-controlling interest 13,837 140
------------------------------ ------ -------------------------------------- --------------------------------------
Profit/(loss) for the period 87,679 (24,146)
------------------------------ ------ -------------------------------------- --------------------------------------
Consolidated Statement of Comprehensive Income (continued)
For the half year ended 30 June 2023 For the half year ended 30 June 2022
Note $'000 $'000
Profit/(loss) for the period (brought
forward) 87,679 (24,146)
-------------------------------------- -------------------------------------- --------------------------------------
Other comprehensive
income/(loss)
Items that may be
reclassified subsequently to
profit or loss
Exchange differences on
translation of foreign
operations:
- Members of the parent (23,623) (6,363)
Items that may not be
reclassified subsequently to
profit or loss
Exchange differences on
translation of foreign
operations:
- Non-controlling interest (1,226) 6,362
- Changes in the fair
value/realisation of financial
assets at fair value through other
comprehensive
income, net of tax - (1,045)
Other comprehensive loss for the
period, net of tax (24,849) (1,046)
-------------------------------------- -------------------------------------- --------------------------------------
Total comprehensive income/(loss) for
the period 62,830 (25,192)
-------------------------------------- -------------------------------------- --------------------------------------
Total comprehensive
income/(loss) attributable
to:
Members of the parent 50,219 (31,694)
Non-controlling interest 12,611 6,502
-------------------------------------- -------------------------------------- --------------------------------------
Total comprehensive income/(loss) for
the period 62,830 (25,192)
-------------------------------------- -------------------------------------- --------------------------------------
Profit/(loss) per share for net loss
attributable for operations to the
ordinary equity holders
of the parent:
-------------------------------------- -------------------------------------- --------------------------------------
Basic earnings/(loss) per share 4.31 cents (2.20) cents
-------------------------------------- -------------------------------------- --------------------------------------
Diluted earnings/(loss) per share 4.31 cents (2.20) cents
-------------------------------------- -------------------------------------- --------------------------------------
Profit/(loss) per share for net loss
attributable for continuing
operations to the ordinary
equity holders of the parent:
-------------------------------------- -------------------------------------- --------------------------------------
Basic earnings/(loss) per share 4.31 cents (2.20) cents
-------------------------------------- -------------------------------------- --------------------------------------
Diluted earnings/(loss) per share 4.31 cents (2.20) cents
-------------------------------------- -------------------------------------- --------------------------------------
Consolidated Statement of Financial Position
Note 30 June 2023 31 December 2022
$'000 $'000
Current assets
Cash and cash equivalents 65,777 80,873
Other financial assets - restricted cash 1,406 1,406
Receivables 6 4,044 48,793
Inventories 7 157,456 146,430
Prepayments and other assets 13,430 11,141
Asset sale receivable 2,500 -
Total current assets 244,613 288,643
------------------------------------------ ----- ------------- -----------------
Non current assets
Income tax asset 6,092 10,545
Receivable 6 13,795 -
Inventories 7 51,268 42,434
Promissory note receivable 40,123 40,015
Contingent consideration receivable 13,280 13,636
Exploration and evaluation 3,901 3,211
Mine properties 8 205,103 222,395
Property, plant and equipment 240,308 234,461
Right-of-use assets 11,720 13,453
------------------------------------------ ----- ------------- -----------------
Total non current assets 585,590 580,150
------------------------------------------ ----- ------------- -----------------
Total assets 830,203 868,793
------------------------------------------ ----- ------------- -----------------
Current liabilities
Payables 55,750 63,700
Financial derivative liabilities 1,730 1,546
Interest bearing liabilities 9 105,259 95,634
Provisions 10 50,463 100,377
Current tax liability 2,028 19,107
Lease liabilities 3,298 3,373
Total current liabilities 218,528 283,737
------------------------------------------ ----- ------------- -----------------
Non current liabilities
Interest bearing liabilities 9 - 29,482
Provisions 10 65,960 71,544
Lease liabilities 10,988 12,536
------------------------------------------ ----- ------------- -----------------
Total non current liabilities 76,948 113,562
------------------------------------------ ----- ------------- -----------------
Total liabilities 295,476 397,299
------------------------------------------ ----- ------------- -----------------
Net assets 534,727 471,494
------------------------------------------ ----- ------------- -----------------
Consolidated Statement of Financial Position (continued)
Note 30 June 2023 31 December 2022
$'000 $'000
Equity attributable to equity holders of the parent
Contributed equity 11 882,731 882,731
Reserves (45,176) (21,956)
Retained earnings/(accumulated losses) (243,499) (317,341)
----------------------------------------------------------- ----- ------------- -----------------
Total equity attributable to equity holders of the parent 594,056 543,434
----------------------------------------------------------- ----- ------------- -----------------
Non-controlling interest (59,329) (71,940)
Total equity 534,727 471,494
----------------------------------------------------------- ----- ------------- -----------------
Consolidated Statement of Changes in Equity
Contributed Net Employee Other Foreign Retained Non-controlling Total
equity unrealised equity reserves currency earnings/ interest
gain/(loss) benefits translation accumulated
reserve reserve reserve losses
At 1 January
2023 882,731 (9,348) 20,447 4,152 (37,207) (317,341) (71,940) 471,494
---------------- ------------ ------------ --------- --------- ------------ ------------ ---------------- -----------
Profit for the
period - - - - - 73,842 13,837 87,679
Other
comprehensive
(loss)/income,
net of tax - - - - (23,623) - (1,226) (24,849)
---------------- ------------ ------------ --------- --------- ------------ ------------ ---------------- -----------
Total
comprehensive
(loss)/income
for the
period, net of
tax - - - - (23,623) 73,842 12,611 62,830
---------------- ------------ ------------ --------- --------- ------------ ------------ ---------------- -----------
Dividend paid - - - - - - - -
Share-based
payments to
employees - - 403 - - - - 403
---------------- ------------ ------------ --------- --------- ------------ ------------ ---------------- -----------
At 30 June 2023 882,731 (9,348) 20,850 4,152 (60,830) (243,499) (59,329) 534,727
---------------- ------------ ------------ --------- --------- ------------ ------------ ---------------- -----------
Contributed Net Employee Other Foreign Retained Non-controlling Total
equity unrealised equity reserves currency earnings/ interest
gain/(loss) benefits translation accumulated
reserve reserve reserve losses
At 1 January
2022 777,021 (8,631) 19,813 4,152 (19,040) (277,682) (70,073) 425,560
---------------- ------------ ------------ --------- --------- ------------ ------------ ---------------- ---------
Profit/(loss)
for the period - - - - - (24,286) 140 (24,146)
Other
comprehensive
(loss)/income,
net of tax - (1,045) - - (6,363) - 6,362 (1,046)
---------------- ------------ ------------ --------- --------- ------------ ------------ ---------------- ---------
Total
comprehensive
(loss)/income
for the
period, net of
tax - (1,045) - - (6,363) (24,286) 6,502 (25,192)
---------------- ------------ ------------ --------- --------- ------------ ------------ ---------------- ---------
Dividend paid - - - - - - (4,398) (4,398)
Share-based
payments to
employees - - (452) - - - - (452)
---------------- ------------ ------------ --------- --------- ------------ ------------ ---------------- ---------
At 30 June 2022 777,021 (9,676) 19,361 4,152 (25,403) (301,968) (67,969) 395,518
---------------- ------------ ------------ --------- --------- ------------ ------------ ---------------- ---------
Consolidated Cash Flow Statement
For the half year ended 30 June 2023 For the half year ended 30 June 2022
$'000 $'000
Cash flows from operating activities
Receipts from customers 330,209 317,200
Payments to suppliers, employees, and
others (266,974) (249,904)
Exploration expenditure (4,446) (7,268)
Net interest paid (5,756) (7,834)
Indirect tax payment (4,787) (4,896)
Income tax payment (3,261) (2,549)
-------------------------------------- -------------------------------------- --------------------------------------
Net cash inflows from operating
activities 44,985 44,749
-------------------------------------- -------------------------------------- --------------------------------------
Cash flows used in investing
activities
Payments for property, plant &
equipment (13,526) (20,866)
Payments for development activities (22,557) (14,895)
Payments for evaluation activities (1,047) (1,305)
Proceeds from sale of property, plant
& equipment 297 18,121
Proceeds from sale of assets - (356)
Other investing activities (382) -
Proceeds from investment in associate 1,000 30,000
-------------------------------------- -------------------------------------- --------------------------------------
Net cash flows From/(used in)
investing activities (36,215) 10,699
-------------------------------------- -------------------------------------- --------------------------------------
Cash flows from/(used in) financing
activities
Repayment of borrowings (30,000) (55,000)
fcr
Subsidiary dividend paid to
non-controlling interest - (3,069)
Dividend paid (1,430) -
Repayment of lease liability (1,988) (1,960)
-------------------------------------- -------------------------------------- --------------------------------------
Net cash flows used in financing
activities (33,418) (60,029)
-------------------------------------- -------------------------------------- --------------------------------------
Net decrease in cash and cash
equivalents (24,648) (4,581)
-------------------------------------- -------------------------------------- --------------------------------------
Cash and cash equivalents at the
beginning of the period 35,460 25,237
Exchange rate adjustment 1,967 381
-------------------------------------- -------------------------------------- --------------------------------------
Cash and cash equivalents at the end
of the period 12,779 21,038
-------------------------------------- -------------------------------------- --------------------------------------
Cash and cash equivalents comprise
the following:
Cash at bank and on hand 65,776 65,613
Bank overdraft (52,997) (44,575)
-------------------------------------- -------------------------------------- --------------------------------------
Cash and cash equivalents at the end
of the period 12,779 21,038
-------------------------------------- -------------------------------------- --------------------------------------
Notes to the Financial Statements
Note 1: Corporate Information
The financial report of Resolute Mining Limited and its
controlled entities ("Resolute", the "Group" or "consolidated
entity") for the half year ended 30 June 2023 was authorised for
issue in accordance with a resolution of directors on 22 August
2023.
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.
The principal activities of entities within the consolidated
entity during the half year were:
-- gold mining; and,
-- prospecting and exploration for minerals.
There has been no significant change in the nature of those
activities during the half year.
Note 2: Basis of Preparation and Summary of Significant
Accounting Practices
a) Basis of Preparation
This interim financial report for the half year ended 30 June
2023 has been prepared in accordance with AASB 134 Interim
Financial Reporting and the Corporations Act 2001.
The half year financial report does not include all notes of the
type normally included within the annual financial report and
therefore cannot be expected to provide as full an understanding of
the financial performance, financial position and financing and
investing activities of the Group as the full financial report.
It is recommended that the half year financial report be read in
conjunction with the Annual Report for the year ended 31 December
2022 and considered together with any public announcements made by
Resolute Mining Limited during the half year ended 30 June 2023 in
accordance with the continuous disclosure obligations of the
Australian Securities Exchange listing rules and London Stock
Exchange rules. The consolidated financial report is presented in
United States dollars ("$") rounded to the nearest thousand
dollars, unless otherwise stated.
The accounting policies and methods of computation are the same
as those adopted in the most recent annual financial report.
Notes to the Financial Statements
Note 3 (a): Segment revenue and expenses
For the half year ended 30 June 2023 Mako (Senegal) Syama (Mali) Corp/Other Total
$'000 $'000 $'000 $'000
Revenue
Gold and silver sales at spot to external customers (a) 121,910 207,589 - 329,499
--------------------------------------------------------- ---------------- ------------- ----------- ----------
Total segment gold and silver sales revenue 121,910 207,589 - 329,499
--------------------------------------------------------- ---------------- ------------- ----------- ----------
Costs of production (48,989)(1) (139,937) - (188,926)
Gold in circuit inventories movement 1,162 5,213 - 6,375
--------------------------------------------------------- ---------------- ------------- ----------- ----------
Costs of production relating to gold sales (47,827) (134,724) - (182,551)
--------------------------------------------------------- ---------------- ------------- ----------- ----------
Royalty expense (6,096) (14,164) - (20,260)
Operational support costs (8,518) (999) - (9,517)
--------------------------------------------------------- ---------------- ------------- ----------- ----------
Other operating costs relating to gold sales (14,614) (15,163) - (29,777)
--------------------------------------------------------- ---------------- ------------- ----------- ----------
Administration and other corporate expenses - - (9,081) (9,081)
--------------------------------------------------------- ---------------- ------------- ----------- ----------
Share-based payments expense - - (344) (344)
--------------------------------------------------------- ---------------- ------------- ----------- ----------
Exploration and business development expenditure (2,016) (4,352) - (6,368)
--------------------------------------------------------- ---------------- ------------- ----------- ----------
Earnings/(loss) before interest, tax, depreciation and
amortisation 57,453 53,350 (9,425) 101,378
--------------------------------------------------------- ---------------- ------------- ----------- ----------
Amortisation of evaluation, development and
rehabilitation costs (16,998) (13,479) - (30,477)
Depreciation of mine site properties, plant and
equipment (7,273) (8,788) - (16,061)
--------------------------------------------------------- ---------------- ------------- ----------- ----------
Depreciation and amortisation relating to gold sales (24,271) (22,267) - (46,538)
--------------------------------------------------------- ---------------- ------------- ----------- ----------
Segment operating result before treasury, other
income/(expenses) and tax 33,182 31,083 (9,425) 54,840
--------------------------------------------------------- ---------------- ------------- ----------- ----------
Interest income 4 - 1,407 1,411
--------------------------------------------------------- ---------------- ------------- ----------- ----------
Other income/ (expense) - (135) 31 (104)
--------------------------------------------------------- ---------------- ------------- ----------- ----------
Interest and fees (370) (2,719) (3,981) (7,070)
Rehabilitation and restoration provision accretion (526) (936) - (1,462)
--------------------------------------------------------- ---------------- ------------- ----------- ----------
Finance costs (896) (3,655) (3,981) (8,532)
--------------------------------------------------------- ---------------- ------------- ----------- ----------
Realised foreign exchange gain/(loss) (846) 379 923 456
Treasury - realised gains/(loss) (846) 379 923 456
--------------------------------------------------------- ---------------- ------------- ----------- ----------
Inventories net realisable value movements and obsolete
consumables 928 7,615 - 8,543
Unrealised foreign exchange (loss) (691) - (1,499) (2,190)
Unrealised foreign exchange gain on intercompany
balances - - 31,571 31,571
--------------------------------------------------------- ---------------- ------------- ----------- ----------
NRV inventory movements and unrealised treasury
transactions 237 7,615 30,072 37,924
--------------------------------------------------------- ---------------- ------------- ----------- ----------
Depreciation of non-mine site assets (69) - (852) (921)
Indirect tax (expense)/benefit (5,000) (1) (273) - (5,273)
Income tax (expense)/benefit 14,463 (1) (4,608) (1,977) 7,878
--------------------------------------------------------- ---------------- ------------- ----------- ----------
(Loss)/profit for the period 41,075 30,406 16,198 87,679
--------------------------------------------------------- ---------------- ------------- ----------- ----------
1 - The Group has settled the Mako tax exoneration and fully
extended the exoneration period from 5 to 7 years. The prior year
recognised provision has been reversed in the current period. For
the half year ended 30 June 2023, cost of production and income tax
expense has reversed by $16.4 million and $14.5 million,
respectively.
Notes to the Financial Statements
Note 3 (a): Segment revenue and expenses (continued)
For the half year ended 30 June 2022 Mako (Senegal) Syama (Mali) Corp/Other Total
$'000 $'000 $'000 $'000
Revenue
Gold and silver sales at spot to external customers (a) 122,746 194,912 - 317,658
--------------------------------------------------------- ---------------- ------------- ----------- ----------
Total segment gold and silver sales revenue 122,746 194,912 - 317,658
--------------------------------------------------------- ---------------- ------------- ----------- ----------
Costs of production (58,976) (124,190) - (183,166)
Gold in circuit inventories movement 342 (10,292) - (9,950)
--------------------------------------------------------- ---------------- ------------- ----------- ----------
Costs of production relating to gold sales (58,634) (134,482) - (193,116)
--------------------------------------------------------- ---------------- ------------- ----------- ----------
Royalty expense (6,137) (12,865) - (19,002)
Operational support costs (8,986) (2,042) - (11,028)
--------------------------------------------------------- ---------------- ------------- ----------- ----------
Other operating costs relating to gold sales (15,123) (14,907) - (30,030)
--------------------------------------------------------- ---------------- ------------- ----------- ----------
Administration and other corporate expenses (2,543) (748) (4,271) (7,562)
--------------------------------------------------------- ---------------- ------------- ----------- ----------
Share-based payments expense - - (291) (291)
--------------------------------------------------------- ---------------- ------------- ----------- ----------
Exploration and business development expenditure (2,928) (5,075) (184) (8,187)
--------------------------------------------------------- ---------------- ------------- ----------- ----------
Earnings/(loss) before interest, tax, depreciation and
amortisation 43,518 39,700 (4,746) 78,472
--------------------------------------------------------- ---------------- ------------- ----------- ----------
Amortisation of evaluation, development and
rehabilitation costs (15,228) (12,459) - (27,687)
Depreciation of mine site properties, plant and
equipment (6,017) (8,707) - (14,724)
--------------------------------------------------------- ---------------- ------------- ----------- ----------
Depreciation and amortisation relating to gold sales (21,245) (21,166) - (42,411)
--------------------------------------------------------- ---------------- ------------- ----------- ----------
Segment operating result before treasury, other
income/(expenses) and tax 22,273 18,534 (4,746) 36,061
--------------------------------------------------------- ---------------- ------------- ----------- ----------
Interest income - - 3,743 3,743
--------------------------------------------------------- ---------------- ------------- ----------- ----------
Other Income - 15 4,534 4,549
--------------------------------------------------------- ---------------- ------------- ----------- ----------
Interest and fees (47) (1,619) (7,170) (8,836)
Rehabilitation and restoration provision accretion (199) (433) - (632)
--------------------------------------------------------- ---------------- ------------- ----------- ----------
Finance costs (246) (2,052) (7,170) (9,468)
--------------------------------------------------------- ---------------- ------------- ----------- ----------
Realised foreign exchange gain (loss) 660 1,393 (2,002) 51
Treasury - realised gains (loss) 660 1,393 (2,002) 51
--------------------------------------------------------- ---------------- ------------- ----------- ----------
Inventories net realisable value movements and obsolete
consumables (1,638) (155) - (1,793)
Unrealised foreign exchange gain/(loss) (2,252) - (8,134) (10,386)
Unrealised foreign exchange loss on intercompany
balances - - (23,261) (23,261)
--------------------------------------------------------- ---------------- ------------- ----------- ----------
NRV inventory movements and unrealised treasury
transactions (3,890) (155) (31,395) (35,440)
--------------------------------------------------------- ---------------- ------------- ----------- ----------
Share of associates' losses - - (898) (898)
Depreciation of non-mine site assets (78) - (1,077) (1,155)
Indirect tax expense - (5,389) (62) (5,451)
Income tax (expense)/benefit (11,388) (2,057) (2,693) (16,138)
--------------------------------------------------------- ---------------- ------------- ----------- ----------
(Loss)/profit for the period 7,331 10,289 (41,766) (24,146)
--------------------------------------------------------- ---------------- ------------- ----------- ----------
Notes to the Financial Statements
Note 3 (a): Segment revenue and expenses (continued)
(a) Revenue from external sales for each reportable segment is
derived from several customers.
(b) This information does not represent an operating segment as
defined by AASB 8 'Operating Segments' and forms part of the
reconciliation of the results and positions of the operating
segments to the financial statements.
Note 3 (b): Segment assets and liabilities
For the half year ended 30 June 2023 Mako (Senegal) Syama (Mali) Corp/Other Total
$'000 $'000 $'000 $'000
Segment balance sheet items
Segment assets 220,904 512,185 97,114 830,203
Segment liabilities 65,088 166,003 64,385 295,476
(a) This information does not represent an operating segment as
defined by AASB 8 'Operating Segments' and forms part of the
reconciliation of the results and positions of the operating
segments to the financial statements.
Note 4: Dividend
There were no interim dividends paid or provided for Resolute
Mining Limited during the half year end up to the date of this
report (half year ended 30 June 2022: $nil).
Note 5: Taxes
At 30 June 2023, the Group recognised an income tax benefit of
$7.9 million (30 June 2022: tax expense of $16.1 million). A $14.5
million reduction in the income tax expense in Senegal relating to
the finalisation of the tax exoneration extension was offset by a
$4.6 million income tax expense for local statutory purposes.
Note 6: Receivables
Receivables of $17.8 million at 30 June 2023 (31 December 2022:
$48.8 million) primarily relate to indirect taxes owing to the
Group by the Republic of Mali and Senegal. Significant movement for
the year relates to the reversal of $34.9 million of VAT provision
raised in relation with the Senegalese tax authority as the
exoneration was settled.
Notes to the Financial Statements
Note 7: Inventories
30 June 2023 31 December 2022
$'000 $'000
Current
Ore stockpiles - at cost 30,041 27,223
Ore stockpiles - at net realisable value 31,767 28,286
Gold in circuit - at cost 5,739 4,186
Gold in circuit - at net realisable value 1,687 373
Gold bullion on hand - at cost 15,308 10,276
Consumables at net realisable value 72,914 76,086
------------------------------------------- --------------- -------------------
Total Inventory (current) 157,456 146,430
------------------------------------------- --------------- -------------------
Non current
Ore stockpiles - at cost 3,142 1,959
Ore stockpiles - at net realisable value 4,189 3,279
Gold in circuit - at net realisable value 43,937 37,196
------------------------------------------- --------------- -------------------
Total Inventory (non current) 51,268 42,434
------------------------------------------- --------------- -------------------
Note 8: Mine properties
At 30 June 2023, the Group's mine properties amount to $205.1
million (31 December 2022: $222.4 million). During the six-month
period to 30 June 2023, further additions for development
activities were made of $22.6 million, fully offset by amortisation
recognition on production assets.
Note 9: Interest bearing liabilities
30 June 2023 31 December 2022
$'000 $'000
Interest bearing liabilities (current)
Bank overdraft 52,996 45,414
Insurance premium funding 2,395 -
Borrowings 49,868 50,220
-------------------------------------------------- --------------- -------------------
Total Interest bearing liabilities (current) 105,259 95,634
-------------------------------------------------- --------------- -------------------
Interest bearing liabilities (non current)
Borrowings - 29,482
-------------------------------------------------- --------------- -------------------
Total Interest bearing liabilities (non current) - 29,482
-------------------------------------------------- --------------- -------------------
Total 105,259 125,116
-------------------------------------------------- --------------- -------------------
Notes to the Financial Statements
Note 10: Provisions
30 June 31 December
2023 2022
$'000 $'000
Current
Site restoration 3,139 1,220
Employee entitlements 3,373 4,336
Provision for direct and indirect taxes(1) 42,011 92,936
Other provision 1,940 1,885
-------------------------------------------- ---------- --------------
Total provisions (current) 50,463 100,377
-------------------------------------------- ---------- --------------
Non Current
Site restoration 65,028 70,874
Employee entitlements 932 670
-------------------------------------------- ---------- --------------
Total provisions (non current) 65,960 71,544
-------------------------------------------- ---------- --------------
1. Based on the facts and circumstances at 30 June 2023 and in
line with requirements of the accounting standards, the Group has
reversed $66.7 million (comprised of $34.9 million VAT, $17.3
million indirect taxes, and $14.5 million income tax) of the tax
claim by the Senegalese tax authority as the exoneration dispute
was settled for an amount of $5 million. The factual basis and
validity of the remaining demands (primarily in Mali) are being
strongly disputed by Resolute due to fundamental misinterpretations
of the application of certain tax law. Resolute continues to work
with its legal and tax advisors to contest the demand and will
resist any efforts to enforce payment. The demand for Income Tax
has been disclosed as a contingent liability.
Notes to the Financial Statements
Note 11: Contributed Equity
Total Number Number Quoted $'000
At 1 January 2023 2,129,006,569 2,129,006,569 882,731
Changes during current period, net of issue costs: - - -
At 30 June 2023 2,129,006,569 2,129,006,569 882,731
---------------------------------------------------- -------------- -------------- --------
Fair Value per Right at Grant Date
Issue Date Total Number (A$) Vesting Date
Performance rights on issue
Band A1 and A2 26/10/2018 13,550 $0.92 30/06/2021
Band A1 and A2 21/05/2019 73,377 $0.93 31/12/2021
Band A1 and A2 22/05/2020 121,130 $0.85 31/12/2022
Band A0 14/07/2021 443,716 $0.43 31/12/2023
Band A1, A2 and B1 14/07/2021 1,398,849 $0.57 31/12/2023
Band A1 and A2 06/12/2021 211,276 $0.37 31/12/2023
Band B1 06/12/2021 219,942 $0.31 31/12/2023
Band A1 and A2 06/12/2021 264,171 $0.32 31/12/2023
Band A0 22/06/2022 1,958,147 $0.19 31/12/2024
Band A1, A2 and B1 22/06/2022 5,275,334 $0.19 31/12/2024
Band A0 30/06/2023 1,000,000 $0.23 30/06/2025
Band A0 30/06/2023 3,548,554 $0.34 31/12/2025
Band A1, A2 and B1 30/06/2023 9,266,960 $0.35 31/12/2025
As at 30 June 2023 23,795,006
--------------------------------------------------- ------------- ----------------------------------- -------------
Fair Value
per Right
Date Total at Grant Vesting
of Change Number Date (A$) Date
Opening number of performance rights 10,916,506
Decrease through lapsing of
performance
rights (Band A0) 30/06/2023 (194,352) $0.56 31/12/2022
Decrease through lapsing of
performance
rights (Band A1 to A2) 30/06/2023 (742,662) $0.85 31/12/2022
Increase through issue of
performance
rights to eligible employees (Band
A0) 30/06/2023 1,000,000 $0.23 30/06/2025
Increase through issue of
performance
rights to eligible employees (Band
A0) 30/06/2023 3,548,554 $0.34 31/12/2025
Increase through issue of
performance
rights to eligible employees (Band
A1, A2 and B1) 30/06/2023 9,266,960 $0.35 31/12/2025
------------------------------------- ------------ ------------- ---------------- -----------------
Closing number of performance rights 23,795,006
------------------------------------- ------------ ------------- ---------------- -----------------
*The terms and conditions of the Remuneration Framework are
consistent with those disclosed in the Annual Report for the year
ended 31 December 2022 and the Notice of Annual General Meeting
sent to shareholders on 18 April 2023.
Notes to the Financial Statements
Note 12: Gold forward contracts
As part of its risk management policy, the Group enters into
gold forward contracts to manage the gold price of a proportion of
anticipated sales of gold.
Gold forward contracts commitment at 30 June 2023 (not recorded
as derivatives):
Average Gold for Value
Contracted Physical of Committed
Gold Sale Delivery sales
Price per oz $'000
oz ($)
30 June 2023
Within one year 1,929 162,500 313,462
Total 162,500 313,462
----------------- ------------ ---------- --------------
Note 13: Events Occurring after Balance Date
Since the end of the period and to the date of this report, no
matter or circumstance has arisen that has significantly affected,
or may significantly affect, the operations of the Group, the
results of operation or the state of affairs of the consolidated
group in subsequent periods.
Directors' Declaration
In the opinion of the directors:
a) the financial statements and notes are in accordance with the
Corporations Act 2001, including:
(i) complying with Accounting Standard AASB 134 Interim
Financial Reporting, the Corporations Regulations 2001; and
(ii) giving a true and fair view of the Group's financial
position as at 30 June 2023 and of its performance, as required by
Accounting Standards, for the half year ended on that date.
b) there are reasonable grounds to believe that the Group will
be able to pay its debts as and when they become due and
payable.
This declaration has been made in accordance with a resolution
of the directors.
Terence Holohan
Managing Director & CEO
Perth, Western Australia
22 August 2023
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END
IR UUSNROBUWURR
(END) Dow Jones Newswires
August 22, 2023 02:50 ET (06:50 GMT)
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