What Resolute Mining (RSG) Said on Its Q3 Earnings Call

Key Points

• Q3 performance: Resolute Mining produced more than 44,000 ounces of gold, generated $64 million in EBITDA and ended the quarter with $276 million in net cash. The company maintained its revised 2026 guidance of 205,000–225,000 ounces at estimated AISC of $2,225–$2,350 per ounce.
• Doropo remains on schedule: Construction in Côte d’Ivoire is advancing, with 61% of the project’s $516 million capital budget committed and first gold expected in the first half of 2028. The company is also pursuing exploration and infrastructure work to support longer-term growth.
• Syama recovery is central to near-term results: Operational disruptions and roaster issues weighed on Syama’s third-quarter performance, but management said conditions improved by quarter-end and expects 45,000–50,000 ounces in Q4. Mako continued to perform well, producing 12,621 ounces at an AISC of $1,516 per ounce.

Resolute Mining LON: RSG reported third-quarter gold production of more than 44,000 ounces, generated $64 million in EBITDA and ended the period with net cash of $276 million, while continuing construction at its Doropo project in Côte d’Ivoire and addressing operational disruptions at Syama in Mali.

Chief Executive Officer Chris Eger said the company remained on track to meet its revised 2026 production guidance of 205,000 to 225,000 ounces at all-in sustaining costs (AISC) of approximately $2,225 to $2,350 per ounce. He said Resolute’s longer-term strategy remains focused on reaching more than 500,000 ounces of production from 2028, with an increased geographic focus on Côte d’Ivoire.

Quarterly financial and operating results

Resolute poured just over 44,000 ounces of gold during the September quarter, including about 31,000 ounces from Syama and about 13,000 ounces from Mako in Senegal. It sold 33,000 ounces at an average realized gold price of $4,325 per ounce, producing quarterly revenue of $143 million.

Chief Financial Officer Dave Jackson said sales volumes were lower than production because of shipment timing rather than logistical constraints. The company ended the quarter with nearly 23,000 ounces of bullion on hand, which was sold shortly after the period ended.

Operating cash flow before capital expenditure, exploration and working-capital movements was $56 million. Group AISC was $2,506 per ounce, compared with $2,484 per ounce in the second quarter. Syama’s AISC was $2,596 per ounce, while Mako’s was $1,516 per ounce.

Capital expenditure totaled more than $85 million during the quarter, including $53 million at Doropo, $19 million at Syama, $3 million at Mako and $10 million of capitalized exploration spending. Resolute finished the quarter with $330.3 million of cash and bullion, including $95.4 million of bullion, against total borrowings of $54.2 million.

Available liquidity was approximately $480 million at Sept. 30. Jackson said $29 million had been drawn from Doropo financing facilities, with the balance expected to be drawn progressively through 2026 and 2027 in line with project spending.

Doropo construction advances

Chief Operating Officer Gavin Harris said more than 800 people had been mobilized at Doropo, where earthworks in the plant area were substantially complete and concrete had been poured for the first carbon-in-leach tank foundations. Nearly two-thirds of project expenditure had been committed, with costs tracking the definitive feasibility study estimate, he said.

Resolute expects first gold at Doropo in the first half of 2028. The company has committed about $315 million, or 61%, of the project’s $516 million total capital budget. It has also finalized $260 million in local financing facilities for the project.

The company awarded or progressed work packages for accommodation, plant construction, water infrastructure and tailings facilities. It also completed tender evaluation for a 30-megawatt solar power plant that would be funded and operated by the supplier under a power offtake agreement for the life of mine.

At the Kilosegui deposit, approximately 30 kilometers from the planned Doropo processing plant, Resolute began a 20,000-meter step-out drilling program. Management is also assessing whether the scale of the deposit and ore transport costs could support a standalone plant. Harris said an update is expected in the first half of 2027.

During the question-and-answer session, management said supply chains into Côte d’Ivoire had generally been favorable, although clearance at the Port of Abidjan had experienced a backlog of about four weeks. The company also identified water management as a key focus and is advancing water storage and harvesting infrastructure ahead of the next wet season.

Syama recovery efforts and Mako performance

Syama produced 31,800 ounces in the third quarter, including 15,600 ounces during September. Harris said the mine’s performance had improved toward the end of the quarter after disruptions related to security conditions, contractor mobilization, explosive supply and an extended roaster shutdown.

The roaster upgrade under the Syama Sulphide Conversion Project experienced intermittent operations during the first half of the quarter, but Harris said the issues had been rectified and the roaster was performing as expected at quarter-end. Ball-mill commissioning was underway, with benefits expected in the second half of the fourth quarter.

The company expects Syama to produce 45,000 to 50,000 ounces in the fourth quarter. An emulsion explosives manufacturing plant was being commissioned, with the first batch of explosives expected the following week. Harris said the facility should reduce supply-chain risks and support a return to targeted mining rates.

Management said it expects Syama grades to move closer to reserve grade as mining progresses into higher-grade sulfide material at the A21 pit. Harris also said recoveries, which were around 73% during the quarter, could approach 80% by the end of the fourth quarter and into 2027 as grades improve and mill optimization continues.

At Mako, third-quarter production of 12,621 ounces met expectations. The operation’s AISC of $1,516 per ounce was below annual guidance, reflecting cost-optimization measures despite higher fuel prices and royalties. Resolute said Mako remains on track to achieve its annual production target while outperforming the lower end of its cost guidance.

Exploration and permitting pipeline

In Côte d’Ivoire, Resolute completed more than 24,000 meters of infill drilling at its ABC exploration project, where it has a 3 million-ounce inferred resource at 0.7 grams per tonne. The company expects to release an updated mineral resource estimate early next year after completing infill work, with a feasibility study targeted for 2027.

At La Debo, Resolute completed roughly 16,000 meters of extension drilling at the G3 South zone. The broader deposit resource increased 44% to nearly 1 million ounces, while the G3 South resource expanded by more than 75% to 670,000 ounces. Management said it would pause additional work for the remainder of the year while assessing 2027 plans and whether the project has sufficient scale for development.

At Mako, the company advanced environmental and social impact assessment approvals for the Tomboronkoto and Bantaco deposits. Resolute expects to submit exploitation permit applications in the coming weeks and anticipates permits could be granted in the first half of 2027.

About Resolute Mining (LON:RSG)

Resolute is an African-focused gold miner with more than 30 years of experience as an explorer, developer and operator. Throughout its history the Company has produced more than 9 million ounces of gold from ten gold mines. The Company is now entering a growth phase through the development of the Doropo project in Côte d'Ivoire which will supplement the existing production from the Syama mine in Mali and Mako mine in Senegal. The Company trades on the Australian Securities Exchange (ASX) and the London Stock Exchange (LSE) under the ticker RSG.

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