Resolute Mining Limited

This report is an updated version of the report published on 10 September 2025 at 12:14 PM AEST. 

Section 1: Company Overview and Fundamental Insights

1.1 Company Overview: Resolute Mining Limited (ASX: RSG) is an African-focused gold miner with over 30 years of experience as an explorer, developer, and operator. Resolute currently operates two producing gold mines: the Syama Gold Mine in Mali, featuring both underground and open pit operations with ongoing sulphide processing expansion, and the Mako Gold Mine in Senegal, a high-quality open pit operation with potential life extensions through satellite deposits. In May 2025, Resolute acquired the Doropo Gold Project in Côte d’Ivoire, a development-stage asset poised to significantly increase group production and diversify its geographic footprint. Kalkine’s Resources Report covers the Investment Highlights, Management Insights, Key Financial Metrics, Risks, Technical Analysis along with the Valuation, Target Price, and Recommendation on the stock.

 1.2 The Key Positives, Negatives, Investment Highlights, and Management Insights

1.3 Top 10 Shareholders:

The top 10 shareholders together form 53.63% of the total shareholding. Helikon Investments Ltd and Van Eck Associates Corporation hold maximum stakes in the company at 10.80% and 7.12%, respectively.

1.4 Key Metrics: The image below highlights that, between FY21 and FY24, Resolute Mining’s gross margin showed a steady improvement driven by increased gold prices and enhanced operational efficiency. From FY22 onwards, growing production from the Syama sulphide project and the Mako mine, coupled with disciplined cost control and improved ore grades, contributed to expanding gross profits. By FY24, the company benefited from higher average gold prices and ongoing operational optimization, resulting in a stronger gross margin despite inflationary pressures and increased royalties. EBITDA margins followed a similar upward trend over the same period, reflecting improved operational performance and revenue growth.  As Resolute progressed with the sulphide conversion at Syama and ramped up production at Mako, EBITDA gains materialized driven by higher revenue and fixed cost leverage.

Section 2: Business Updates, Financial and Operational Highlights

2.1 Recent Business Updates:

2.2 Financial Highlights: Below mentioned are some key financial highlights:   

2.3 Historical Financial Trend

Section 3: Key Risks and Outlook:

Section 4: Stock Recommendation Summary

4.1 Price Performance and Technical Summary

The stock price has gained by approximately 10.71% over the past month, and it has increased by around 17.42% over the last 1-year. The stock has a 52-week low and 52-week high of AUD 0.340 and AUD 0.890, respectively, and is currently trading above its 52-week mid-level.

 (Source: REFINITIV; Analysis by Kalkine Group)

4.2 Fundamental Valuation

Valuation Methodology: Price/Cash Flow Multiple Based Relative Valuation (Illustrative)

Markets are trading in a highly volatile zone currently due to certain macro-economic issues and geopolitical tensions prevailing. Therefore, it is prudent to follow a cautious approach while investing.

Note 1: Past performance is neither an indicator nor a guarantee of future performance.

Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels is 10 September 2025. The reference data in this report has been partly sourced from REFINITIV.

Note 3: Investment decisions should be made depending on an individual's appetite for upside potential, risks, holding duration, and any previous holdings. An 'Exit' from the stock can be considered if the Target Price mentioned as per the Valuation and or the technical levels provided have been achieved and is subject to the factors discussed above.

Note 4: Kalkine reports are prepared based on the stock prices captured either from REFINITIV or Trading View. Typically, REFINITIV or Trading View may reflect stock prices with a delay which could be a lag of 25-30 minutes. There can be no assurance that future results or events will be consistent with the information provided in the report. The information is subject to change without any prior notice. 

Technical Indicators Defined: -

Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock.

Resistance: A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Resistance 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Resistance 2 may act as the crucial resistance level for the stock. Stop-loss: It is a level to protect further losses in case of unfavourable movement in the stock prices.