Resolute Mining expects lower production and increased costs in 2025 resulting from the depletion of its Mako mine and fiscal changes in Mali. The company projects a production target of 275,000 to 300,000 ounces, with AISC rising to $1,650-$1,750 per ounce. The increase is largely attributed to new taxation policies imposed by Mali’s government, impacting financial stability and operations across the region.
Resolute Mining, an Australia-based gold producer, announced expectations of lower production and escalated costs for 2025, primarily due to the nearing depletion of its Mako mine in Senegal and increased fiscal demands in Mali. The company projects production levels between 275,000 and 300,000 ounces, with all-in sustaining costs (AISC) rising to $1,650-$1,750 per ounce, in contrast to 340,000 ounces produced in 2024 at an AISC of $1,476 per ounce.
In late 2024, Resolute faced significant challenges after the Mali government implemented extensive fiscal changes. CEO Terry Holohan and two executives were detained amid a tax conflict; however, they were released after the company consented to pay $160 million. Currently, Holohan, on leave since December, is expected to clarify his future with Resolute soon, as stated by Acting CEO Chris Eger.
The company’s financial status has suffered due to its agreement with the Malian government, which added $250 per ounce to its AISC, reflecting a rising fiscal burden. Changes such as royalty increases from 6% to 10% and the removal of a fuel tax exemption have contributed to the increased expenses, according to Acting CFO Dave Jackson.
International miners, including Barrick Gold and AngloGold Ashanti, are facing increased regulatory pressures as Mali’s military government seeks higher contributions based on a new mining code enacted in 2023. This code requires miners to make annual foundation payments and gives the government preference shares in mining ventures.
Despite these complications, Resolute continues to focus on operational optimization. The company has ramped up production at its Syama site and is initiating the second phase of its development, which is projected to commence within the year. Resolute is also prioritizing opportunities in Guinea and Ivory Coast while managing the complex political situation in West Africa.
The company’s shares fell by 3.6% to 41 Australian cents, resulting in a market capitalization of A$862 million, as it grapples with a significant decline in share price since October 2024 due to the adverse fiscal environment in Mali.
Resolute Mining operates primarily in West Africa, focusing on gold production. The company is currently facing challenges related to decreased output due to mine depletion and increased operational costs tied to new fiscal policies in Mali. The political landscape in the region is also evolving, which complicates international mining operations and financial planning.
Resolute Mining anticipates a challenging 2025, marked by reduced production and heightened costs linked to increased fiscal obligations in Mali and the nearing depletion of its Mako mine. With strategic focuses on operational optimization and exploring opportunities in Guinea and Ivory Coast, the company aims to navigate the complex political and economic environments that affect its business.
Original Source: www.mining.com
