Resolute FY production slides

Gold miner suffers steep decline in full-year production, sets FY15 guidance even lower.

Resolute Mining (RSG) has suffered a steep fall in full-year gold production and has set its forecast for next year even lower.

At 11.10am (AEST), Resolute shares were 1.61% higher at 63c, against a benchmark index fall of 0.05%.

In the year to June 30, Resolute's total gold production came to 342,773 ounces at a cash cost of $922 per ounce, on the back of fourth-quarter production of 81,877 ounces at a cash cost of $888 per ounce.

This represents a sharp fall from full-year production of 435,855 ounces in fiscal 2013 at a cash cost of $811 per ounce. 

More concerning, Resolute set its production guidance for fiscal 2015 at 315,000 ounces at an average cash cost of $890 per ounce.

Gross cash inflow from operations in the June quarter was $41 million.

Resolute said it expects cash costs to reduce in fiscal 2015, but warned all-in sustaining costs will be impacted by an increase in waste removal volumes at its Syama project in Mali for the year. However the group noted this was forecast to diminish in subsequent years.

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