The Resolute Mining (ASX: RSG) share price increased by over 9% today, making it on of today’s best gaining shares.
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.
Resolute’s Glittering Ending To The Week
The cause of the share price rise was an update regarding its Syama Gold Mine in Mali.
Resolute Mining said that the sulphide roaster at Syama is expected to be repaired and fully operational in approximately six weeks’ time. The roaster was taken offline in early October due to the detection of a crack in the main external shell.
A detailed inspection has been completed by the Resolute technical team, assisted by Outotec (the original designer of the roaster). The repair program is underway and is expected to be fully operational by mid-December.
The company revealed that the preferred repair method is to install a secondary steel shell in the defective area where the crack has occurred.
While the roaster repairs are continuing, Resolute is conducting a full structural and operational assessment of the roaster, associated infrastructure and production handling systems. All planned maintenance work will be advanced where possible.
Mining activity at the new Syama Underground Mine is continuing during the roaster repair period. Management said the ramp-up of mining is progressing well with production ore now being trucked to the surface using the company’s fully automated haulage fleet.
The miner said that mined ore tonnages increased to 422,517 tonnes in the September 2019 quarter from 329,356 tonnes in the June 2019 quarter.
Resolute has estimated the total cost of the roaster repairs at US$5 million, which is expected to be offset by the operational cost savings from not operating the roaster during the repair period.
Resolute is not making any immediate change to its existing FY19 gold production guidance for the year to December 2019 of 400,000 ounces of gold.
Time To Buy Resolute Mining Shares?
Investors loved the update today, but I’m not sure about investing in gold miners, particularly with gold at a relatively recent high. I’d rather buy the reliable shares in the free report below for protection from market volatility.
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