(Ecofin Agency) - Resolute Mining, an Australian company, operates the Syama gold mines in Mali and the Mako mines in Senegal, with a target gold production of 365,000 ounces (10.3 tonnes) from these African sites.

The company reported a 17% year-on-year decrease in gold production to 76,351 ounces, primarily due to reduced output at the Syama gold mine in Mali.

Resolute Mining reported that Syama yielded 48,459 ounces in Q1 2024, down 17% from 58,655 ounces the previous year. The Mako gold mine in Senegal also experienced a 2% drop in production, from 33,604 ounces in Q1 2023 to 27,892 ounces in Q1 2024. Despite these declines, Resolute remains on track to meet its annual production forecasts of 345,000 to 365,000 ounces in 2024.

The company's ability to benefit from the high gold prices in early 2024 was limited as it had pre-sold gold at fixed prices to raise funds or hedge against price fluctuations.

Resolute CEO Terry Holohan confirmed the repayment of their financing facility and the removal of hedging contracts, allowing them to capitalize on the favorable gold price environment. “By the end of Q1 we had fully repaid our senior financing facility and are now completely unhedged leaving us able to take full advantage of the strong gold price environment,” he said.

With gold trading above $2300 per ounce and potential to exceed $2500 by year-end, Resolute is expected to see an increase in realized prices in the coming months. In Q1 2024, the company achieved an average price of $1950 per ounce, slightly below the industry average of over $2000 per ounce for gold mining companies in Africa.