Resolute Mining report higher gold reserves at end of 2019

Resolute Mining (LON:RSG) have seen a rise in their gold reserves at the end of 2019, which has left shares in green.

The gold miner reported a year-end rise in gold reserves, as the planned sale of its Ravenswood mine goes ahead.

Resolute told the market that total ore and mineral reserves climbed 15% year on year, rising from 16.6 million ounces of gold to 19.1 million ounces at the end of 2019.

The CEO commented:

“Resolute’s updated Ore Reserves and Mineral Resources Statement reflects our ability to significantly grow and improve the inventories we maintain at our long life, large scale gold mines, and at the same time demonstrates our commitment to growth by strategic value accretive acquisitions. We will continue to seek to create value by increasing the range and quality of our Mineral Resources by both successful exploration and prudent investment.”

Resolute Mining sell Ravenswood gold mine

In January, Resolute confirmed that they had sold their Ravenswood gold mine in Queensland.

The sale was made to EMR Capital Management and Golden Energy and Resources (SGX:AUE). Resolute said EMR is a “leading” resources-focused private equity company with “outstanding” credentials.

Resolute have said that they will receive AUD100 million in cash and notes for the initial sale of the mine.

Subject to further terms of the deal, a further AUD200 million could be sent Resolute’s way dependent on gold production figures and gold prices.

The sale of Ravenswood comes at no real surprise as the firm was conducting a strategic review of these operations, however Resolute did say that it hopes the mine will produce 200,000 ounces of gold for 15 years from 2022.

The update today is not as significant as one may expect, however shareholder will be please nonetheless. There should be an optimistic tone for shareholders and the firm to carry fortunes across 2020 to produce a good run of results.

Shares in Resolute Mining trade at 58p (+0.82%). 18/2/20 13:25BST.

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