Tighter margins squeeze Resolute
UPDATE 1.55pm: Resolute Mining has posted a 76 per cent slump in first-half profit to $23.3 million on the back of last year's collapse in gold prices.
The result came on a 14 per cent slide in revenue to $286 million.
The average price received on the 202,965 ounces of gold sold by the company during the period was $1406 an ounce, compared with $1619 an ounce in the previous corresponding period.
The miner came under further margin pressure with a growth in average costs from $787 an ounce in the previous corresponding period to $937 primarily because of the weaker Australian dollar.
The company did not declare an interim dividend.
Resolute said it held $50 million in cash, bullion and liquid investments at the end of December.
The company reiterated full-year production guidance of 345,000 ounces at an average cash cost of $890 per ounce and all-in-sustaining costs of $1175 per ounce.
Resolute also announced the appointment of Martin Botha as a non-executive director following the resignation of Tom Ford.
The company operates the Syama gold mine in Mali, the Golden Pride gold mine in Tanzania and the Ravenswood gold mine in Queensland.
Resolute shares closed up two cents, or 3.18 per cent, at 65 cents.
