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Resolute Mining’s (ASX: RSG) flagship Syama gold mine in Mali has largely stabilised after months of operational disruptions, with production expected to rebound sharply in the current quarter, company executives said on Thursday.
The Syama mine in southwestern Mali is Resolute’s largest asset, accounting for roughly three-quarters of group production guidance this year.
The Australian miner produced 31,777 ounces at Syama in the third quarter after explosives shortages, contractor mobilisation delays and supply-chain disruptions hampered operations, its third-quarter report showed.
Chief Operating Officer Gavin Harris told analysts the Mali operation had “largely stabilized after a turbulent four to five months”, adding that an on-site emulsion plant due to start operating in November should remove a key bottleneck.
Resolute expects Syama output to rise to 45,000-50,000 ounces in the fourth quarter as mining and processing performance improve.
It also expects grades to recover towards reserve levels and plant recoveries to improve to around 80% from about 73% in the third quarter.
CEO Chris Eger said the company was maintaining a “very, very constructive and productive dialogue” with Mali’s government and had seen progress in mining permit renewals.
(Reporting by Maxwell Akalaare Adombila; Editing by Jan Harvey)
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