Resolute Mining (LON:RSG) reported what executives repeatedly described as a “very robust” start to 2026, delivering first-quarter gold production of just under 60,000 ounces, strong cash generation, and continued progress on its key growth projects, including the Doropo development in Côte d’Ivoire and the Syama Sulphide Conversion Project (SSCP) in Mali.
Q1 operating performance and guidance
Chief Executive Officer Chris Eger said the company achieved “pretty much all the targets that we were hoping for” in the quarter. He highlighted safety performance of one lost time injury and a total recordable injury frequency rate (TRIFR) of 0.43.
On costs, Eger said group all-in sustaining costs (AISC) were $2,200 per ounce, “slightly higher than expected,” attributing the increase to higher royalty expenses in a stronger gold price environment. The company maintained group AISC guidance of $2,000–$2,200 per ounce, but Eger cautioned that the guidance was set using a $4,000 gold price assumption, and “if we continue to see elevated gold price throughout the rest of the year, we’ll likely be at the upper end, if not exceed the guidance levels.” He said the company would provide more color on AISC guidance with second-quarter results in July.
Syama and Mako: production, costs, and operational considerations
Chief Operating Officer Gavin Harris said Syama in Mali delivered Q1 gold production of 43,802 ounces, at the higher end of the site’s quarterly guidance range. Of that total, 36,682 ounces came from underground sulphide operations, while 7,120 ounces were produced from oxide stockpiles. Harris said sulphide ore throughput increased 8% quarter-over-quarter, though recoveries were “marginally lower due to the higher throughputs achieved.”
Syama’s Q1 AISC was $2,227 per ounce. Harris said the higher AISC “is a reflection of increased royalties due to a high realized average gold price of $4,858 per ounce during Q1.” He added that when assessed against the company’s $4,000 per ounce guidance assumption, the AISC would be “towards the middle of the guidance range at just under $2,100 per ounce.”
Harris also discussed input cost and supply chain factors. He said the company had not experienced material operational disruption related to instability in the Middle East, but in April, government-regulated fuel prices increased by approximately 40%. If fuel prices remain at those levels for the rest of the year, Harris estimated AISC would rise by about $75 per ounce at Syama. He said the operation has increased consumable inventories, including liquid fuel oil (LFO) and heavy fuel oil (HFO), to support continuity.
At Mako in Senegal, Harris reported Q1 gold production of 15,801 ounces, with AISC of $1,669 per ounce, which he said was in the lower half of guidance. Processing throughput declined quarter-over-quarter due to planned maintenance shutdowns, mill relining, and recovery optimization trials at lower feed grades. Harris said Mako’s production is expected to be steady through the rest of 2026, though stockpile variability is always possible.
Harris noted that LFO prices in Senegal have increased and are currently about 30% higher than anticipated. If the pricing continues during Q2, he estimated it would increase Mako AISC by roughly $50 per ounce for the full year.
Growth projects: Doropo construction and Mako life extension
Management emphasized progress at Doropo, which Eger described as one of two key milestones achieved in the first quarter: receipt of the exploitation permit and board approval of formal final investment decision (FID). Harris said the company received a 14-year mining permit that covers the planned mine life and “can be extended.” He added that extension matters given what the company views as exploration upside, noting reserves were based on a $1,950 per ounce gold price assumption “way below the current spot gold price,” and that “the majority of the deposits are open along strike and at depth.”
Harris said construction has moved quickly following permitting and FID. He stated that the EPCM contract was awarded to Lycopodium Minerals, and early works and earthworks tenders were awarded to De Simone. He also said land surveys have been completed, compensation tariffs agreed, and payment mechanisms established to enable early works to begin in April.
Key Doropo workstreams cited by Harris included land acquisition and crop compensation, road access and clearing, upgrades to an existing exploration camp, construction of permanent mining accommodation, procurement of long-lead items, early works for the grid power connection, and steel fabrication. Harris said Doropo capital expenditure is forecast at $40–$50 million during Q2, and total 2026 Doropo capital remains within guidance of $170–$190 million, with most spending expected in the second half of the year. He reiterated that Doropo remains on track for first gold in 2028.
In Senegal, Harris outlined the Mako Life Extension Project (MLEP), which he said is expected to extend mine life up to seven years and produce 75,000–85,000 ounces per year. MLEP centers on the Tomboronkoto and Bantaco deposits roughly 20 km from the existing operations. Harris cited an initial Tomboronkoto ore reserve of 348,000 ounces at an average grade of 1.2 grams per ton and said Bantaco economic evaluation is “substantially complete.” He cited a Bantaco resource of 10.8 million tons at 1 gram per ton for 351,000 ounces.
Harris said Bantaco is expected to provide mill feed ahead of Tomboronkoto due to less restrictive socioeconomic factors, “primarily the relocation of Tomboronkoto village.” Based on current permitting timelines, he said Bantaco mining is expected to begin in the second half of 2027, while Tomboronkoto is conservatively scheduled to commence mining at the end of H2 2028, providing mill feed in January 2029.
Exploration: ABC, La Debo, Doropo drilling plans, and Guinea MoU
Eger said Resolute increased exploration spending and highlighted activity in Côte d’Ivoire across the ABC project, La Debo, and Doropo. He acknowledged that in Senegal, drilling at Laminia and Sangola “were not that great.”
At the ABC project, Eger said the existing resource is 2.2 million ounces at 0.9 grams per ton, based on a 0.5 grams per ton cutoff and constrained to 250 meters depth. He said the company completed 64 RC holes for more than 11,000 meters in Q1 and plans to continue drilling in Q2, along with publishing a scoping study based on the existing resource. He said drilling to the north and south of the Koné South and Koné Central zones showed consistent mineralization and that he anticipates an updated ABC mineral resource in the second half of the year that would be “substantially larger.”
At La Debo, Eger said the company began drilling in March, completing 2,000 meters, but did not yet have key results to report. He said the company plans at least a 13,000-meter drill program and intends to issue a scoping study and updated mineral resource estimate in the second half of the year. Eger said the company’s target is “close to 1 million ounces, if not more.”
At Doropo, Eger said the company is targeting at least 30,000 meters of drilling focused on the Vako Shear Zone and Kilesegi, with the goal of increasing project resources and reserves and potentially updating them in the second half of the year.
In Guinea, Eger said the company signed a strategic memorandum of understanding with Nimba Mining Company, which he described as a 100% state-owned entity, to evaluate potential gold opportunities. He said Resolute and Nimba are identifying target zones and will begin exploration once the government agrees on the initial areas.
Financial results: cash build, unhedged sales, and Q2 cash flow expectations
Chief Financial Officer Dave Jackson reported Q1 revenue of $338 million from the sale of 60,000 ounces of gold at an average realized price of $4,858 per ounce. He said Resolute remains “fully unhedged” and sells gold at spot prices.
Jackson said net cash at quarter-end was $315 million, up $106 million from Q4. He noted the net cash figure included $100 million of unsold bullion, representing nearly 22,000 ounces, which was sold shortly after quarter end. He reported operating cash flow of $120 million and total capital expenditure of $33 million, including project capital at Syama and Mako, SSCP spend, MLEP spend, Doropo spend, and $5 million on exploration.
Jackson said the company expects Q2 cash flows to decrease from Q1 as Doropo capital ramps up and as it anticipates income tax payments of approximately $50 million tied to the Mali and Senegal assets, reflecting strong 2025 net income performance. He also said the company had roughly $100 million of available overdraft facilities in Mali and Senegal and cited more than $425 million of available liquidity.
On VAT receivables, Eger later said the bulk of the VAT balance sits in Mali and is “around $70 million,” adding that discussions with the government have been productive but the company has not yet received payments. “I am confident we will get them at some point in time. When, I don’t know,” Eger said.
Asked about shareholder returns, Eger said the company intends to use existing cash and future cash flows to fund organic growth, particularly Doropo, over the next couple of years. He said the company would evaluate shareholder return options from 2028 onward, when it expects to be generating substantially more cash, while also weighing other growth opportunities.
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.
