Resolute Mining Ltd

This report is an updated version of the report published on 17 June 2025 at 11:13 AM AEST.

Section 1: Company Overview and Fundamental Insights

Company Overview: Resolute Mining Ltd (ASX: RSG) is an African-focused gold miner with over 30 years of experience in exploration, development, and operation. It currently operates two producing gold mines - The Syama Gold Mine in Mali, which includes an underground mine, satellite open-pit operations, and associated sulphide and oxide processing circuits. And, the Mako Gold Mine in Senegal. In addition to its producing assets, Resolute is entering a growth phase with the development of the Doropo project in Côte d’Ivoire and actively conducts exploration across its African tenements, including in Guinea, Senegal, and Mali. Kalkine’s Gold 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 45.65% of the total shareholding. Van Eck Associates Corporation and Dimensional Fund Advisors, L.P. hold maximum stakes in the company at 7.12% and 6.55%, respectively.

1.4 Key Metrics: From FY21 to FY24, RSG production rose steadily, with improvements in sulphide processing at Syama and higher output from the Mako mine, leading to increased gold sales volumes and better absorption of fixed costs. Resolute also focused on productivity improvements and operational efficiencies at its key mines, which helped reduce unit costs and improve margins despite some challenges like weather impacts and grade variability. In addition, investments in projects like the Syama Sulphide Conversion Project supported longer-term production growth and operational stability, contributing to margin expansion. Below are captured some key metrics:

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 around 6.90% in the last 1 month; and the stock price has surged by around 26.53% in the past 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 slightly above its 52-week high and low average. RSG was previously covered in a report dated ’20 May 2025’.

 (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 17 June 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: Dividend Yield may vary as per the stock price movement. 

Note 5: 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.