Shares in gold miner Resolute Mining Ltd (ASX: RSG) are down more than 10% today after the company informed the market of issues at its Syama mine in Mali, Africa.
Resolute has more than 30 years of experience as an explorer, developer and operator of gold mines in Australia and Africa, and has produced more than 8 million ounces of gold.
The company has informed the market that the roaster, a key component of the Sulphide processing circuit at the Syama Gold mine in Mali, has been taken out of operation due to the detection of a crack in the machinery.
Resolute is yet to examine the full extent of the damage in order to assess the remedial action that may be required. However, the company has said it believes the damage to the machinery might have a material impact on production from the mine in the current quarter.
Upon the completion of an investigation into the damage, Resolute will provide a further update to the market with the planned course of action and any impact on production volumes for the financial year.
Shares in Resolute have suffered as a result of the update and are trading down more than 10% at the time of writing.
Quarterly Production Updates
It was only a few days ago that Resolute released its quarterly production update which was received well by investors, sending the share price 1% higher on the day of the announcement.
Fellow gold miner Ramelius Resources Limited (ASX: RMS) has released its quarterly production update today. The company advised total gold production of 44,182 ounces, which comes in at the lower end of guidance. The result was achieved with a fairly even contribution from its three main mine sites.
Shares in Ramelius have been largely unmoved by the update and are trading at yesterday’s closing price at the time of writing.
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Disclaimer: Any information contained in this article is limited to general financial/investment advice only. The information has not taken into account your specific needs, goals or objectives, so please consider consulting a licenced and trusted adviser before acting on the information. Please read The Rask Group’s Financial Services Guide (FSG) for more information. This article is authorised by Owen Raszkiewicz of The Rask Group, which is a corporate authorised representative No. 1264179 of Strawman Pty Ltd (ACN: 610 908 211) (AFSL: 501 223).
At the time of publishing, Luke has no financial interest in any companies mentioned.