Resolute Mining Ltd on Tuesday reported ‘continued positive momentum’ with increased revenue and production in its latest half year, and said it is on track to meet its full-year targets.

The Perth, Western Australia-based and Africa-focused gold miner reported a $79.8 million pretax profit for the first half of 2023, compared with a $8.0 million loss for the same period in 2022. Earnings before interest, tax, depreciation, and amortisation increased 29% to $101.4 million from $78.5 million.

Resolute did not declare an interim dividend, unchanged from the previous year.

Revenue increased 3.7% to $329.5 million from $317.7 million, while gold production increased by 3.4% to 176,629 ounces from 170,903 ounces. Gold sales decreased 0.4% to 173,058 ounces from 173,717 ounces, but the average realised price increased 4.5% to $1,906 per ounce from $1,824.

Capital expenditure decreased to $36.7 million from $37.2 million.

Resolute said the revenue growth was primarily due to higher than expected production at the Syama gold mine in southwestern Mali, where it increased 5.7% to 112,787 ounces from 73,225.

Resolute reaffirmed its full year production target of 350,000 ounces, mainly due to the continued ‘stable performance’ at Syama at at the Mako gold mine in eastern Senegal, and is currently tracking below its $88 million capital expenditure guidance.

‘The first half of 2023 has again demonstrated continued positive momentum across all operations keeping Resolute on track to meet its full year guidance and longer-term growth plans,’ commented Chief Executive Officer Terry Holohan. ‘The company remains focused on further cost savings and stability of gold production over the second half of the year.

‘Moreover, we are confident our cost reduction initiatives, including the monetising of working capital, will be realised.’

Shares in Resolute Mining were up 7.2% at 17.10 pence on Tuesday morning in London.

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