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1. Company Snapshot

1.a. Company Description

Resolute Mining Limited engages in mining, exploration, development, operation, and production of gold properties in Africa, the United Kingdom, and Australia.The company's flagship project is the Syama Gold Mine located in Mali, West Africa.It also owns Mako Gold Mine in Senegal, West Africa.


The company is also involved in the prospecting and exploration of minerals.Resolute Mining Limited was incorporated in 2001 and is based in Perth, Australia.

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1.b. Last Insights on RSG

Resolute Mining Limited's recent stock performance was negatively driven by the detention of its CEO in Mali, sparking a tax dispute and subsequent demand for $160 million. The company was forced to suspend trading and pay $80 million upfront, with another $80 million to be paid over the coming months. This development has likely disrupted the company's operations and created uncertainty for investors. The tax dispute and CEO detention have overshadowed any positive developments, making it challenging for the company to regain investor confidence.

1.c. Company Highlights

2. Resolute Mining's Strong Q4 2025 Results and Ambitious 2026 Guidance

Resolute Mining reported a robust financial performance in Q4 2025, with revenues driven by a significant increase in gold production. The company's actual EPS came out at $0.01787, beating estimates of $0.00706. The year-to-date EBITDA was $383 million, and revenue was $863 million. The net cash position was $209 million at quarter-end, a $140 million increase from the beginning of the year. The all-in sustaining cost for the group was $1,779 per ounce, with a focus on reducing costs and improving operational efficiency.

Publication Date: Feb -24

📋 Highlights
  • Q4 2025 Gold Production & Cost Efficiency: Achieved 66,000 ounces (+6,000 from Q3) with all-in sustaining costs at $1,877, a $328/oz decrease from Q3.
  • 2026 Guidance & Doropo Project: Guides 250,000–275,000 ounces at $2,000–$2,200/oz; Doropo project boasts $1.46B NPV and 49% IRR, with construction starting Q2 2026.
  • Strong Cash Position: Generated $86M operating cash flow in Q4, ending 2025 with net cash of $209M (+$140M YoY) and $322M liquidity.
  • Exploration & Growth Targets: Spent $25M on exploration in 2025; aims 500,000 ounces by 2028 via organic growth, including MLEP and SSCP projects.
  • Syama Operational Success: Delivered 47.2k ounces in Q4 at record underground production; SSCP to boost output by 5–10% from 2026 levels.

Operational Highlights

The company's gold production was 66,000 ounces in Q4, a 6,000-ounce increase from Q3, with Mako performing exceptionally well. The Syama operation delivered 47.2 kilo ounces of gold in Q4, with a new ore production record from the underground mine. The company has made progress in addressing supply chain issues and is focused on optimization and cost reduction programs.

Doropo Project Update

The Doropo project has a significantly larger reserve and longer mine life than previously estimated, with an updated definitive feasibility study outlining a post-tax net present value of $1.46 billion and an internal rate of return of 49%. The project is expected to start construction in Q2 2026, with first gold production anticipated in H1 2028. As Chris Eger mentioned, the company is maintaining project timelines while awaiting permitting and final investment decision approval.

Valuation and Growth Prospects

With a P/E Ratio of 68.44 and an EV/EBITDA of 13.1, the market is pricing in significant growth prospects for Resolute Mining. The company's guidance for 2026 indicates gold production of 250,000 to 275,000 ounces, with all-in sustaining costs increasing to $2,000 to $2,200 due to higher royalty expenses. The company is confident in achieving 500,000 ounces of production by 2028 and growing organically through exploration success.

Exploration and Future Plans

The company spent $25 million on exploration activities in 2025, with a focus on Senegal, Côte d'Ivoire, and Mali. In 2026, the company plans to spend around the same amount, with a focus on Côte d'Ivoire, particularly on the ABC and La Debo projects. The company has received first reconnaissance authorizations for permits in the Siguiri Basin in Guinea and plans to start exploration activities in 2026.

Financial Flexibility and Funding

The company is well-placed to fund its 2026 capital expenditure requirements, including Doropo, through existing cash balances and anticipated strong cash flows. Discussions with debt providers are ongoing to secure additional capital for Doropo, with a target leverage of 50-50 between equity and debt. The company's net cash position and financial flexibility provide ample liquidity to support its growth plans.

3. NewsRoom

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Update on shareholding in Loncor Gold Inc.

Oct -15

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Mali approves seven new mining deals under revised code

Sep -25

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A Look At The Fair Value Of Resolute Mining Limited (ASX:RSG)

Sep -12

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Four ways to invest in gold

Sep -08

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Resolute Mining Limited's (ASX:RSG) Stock Has Seen Strong Momentum: Does That Call For Deeper Study Of Its Financial Prospects?

Aug -22

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Avanti Gold Corp. Announces the Appointment of Terry Holohan as Non-Executive Independent Director Along with Management Changes

Jul -30

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Will AngloGold Ashanti's Portfolio Optimization Efforts Unlock Value?

Jul -08

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Resolute Mining Full Year 2024 Earnings: EPS Misses Expectations

Mar -28

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4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (4.73%)

6. Segments

Syama

Expected Growth: 4.73%

Syama's 4.73% growth is driven by increased gold production, improved ore grades, and enhanced processing recoveries. Additionally, Resolute Mining's cost-saving initiatives and favorable foreign exchange rates have contributed to the growth. The mine's life extension and exploration success have also boosted confidence in its long-term prospects, supporting the upward trend.

Mako

Expected Growth: 4.73%

Mako's 4.73% growth is driven by increasing gold production, improved ore grades, and enhanced processing recoveries. Additionally, Resolute Mining's cost-saving initiatives, exploration success, and strategic investments in West Africa have contributed to the growth. The mine's low-cost profile, strong cash flow generation, and potential for further exploration upside also support its growth trajectory.

7. Detailed Products

Gold

Resolute Mining Limited is a gold producer with operations in Africa and Australia, producing gold doré and gold concentrate.

Silver

As a by-product of gold mining, Resolute Mining Limited also produces silver, which is often used in industrial applications.

Copper

Resolute Mining Limited's gold mines also produce copper as a by-product, which is used in various industrial applications.

Exploration Services

Resolute Mining Limited offers exploration services to identify and develop new gold deposits.

Mining Services

Resolute Mining Limited provides mining services, including mine planning, operations, and maintenance.

8. Resolute Mining Limited's Porter Forces

Forces Ranking

Threat Of Substitutes

Resolute Mining Limited operates in the gold mining industry, which has few substitutes. However, the company faces competition from other gold mining companies, which could lead to a moderate threat of substitutes.

Bargaining Power Of Customers

Resolute Mining Limited's customers are primarily gold refineries and jewelry manufacturers. The company's customers have limited bargaining power due to the lack of alternative suppliers.

Bargaining Power Of Suppliers

Resolute Mining Limited relies on suppliers for equipment, materials, and services. While the company has some bargaining power, suppliers also have some leverage due to the specialized nature of the industry.

Threat Of New Entrants

The gold mining industry has high barriers to entry, including significant capital requirements and regulatory hurdles. This limits the threat of new entrants to Resolute Mining Limited.

Intensity Of Rivalry

The gold mining industry is highly competitive, with many established players competing for market share. Resolute Mining Limited faces intense rivalry from other gold mining companies, which could lead to downward pressure on prices and profit margins.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 12.50%
Debt Cost 9.71%
Equity Weight 87.50%
Equity Cost 9.71%
WACC 9.71%
Leverage 14.28%

11. Quality Control: Resolute Mining Limited passed 3 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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Growth: 9.1

Quality: 8.2

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Momentum: 10.0

Volatility: 4.0

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Perseus Mining

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OceanaGold

A-Score: 6.2/10

Value: 2.8

Growth: 6.9

Quality: 8.4

Yield: 0.0

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A-Score: 6.0/10

Value: 3.8

Growth: 7.2

Quality: 8.1

Yield: 2.0

Momentum: 10.0

Volatility: 4.7

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Resolute Mining

A-Score: 5.0/10

Value: 1.6

Growth: 5.0

Quality: 7.1

Yield: 0.0

Momentum: 9.5

Volatility: 7.0

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Karora Resources

A-Score: 4.2/10

Value: 1.7

Growth: 7.4

Quality: 6.2

Yield: 0.0

Momentum: 6.5

Volatility: 3.3

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

0.81$

Current Price

0.81$

Potential

-0.00%

Expected Cash-Flows