Syama DFS Update Delivers Lower Cost Longer Mine Life: Resolute Mining Limited (ASX: RSG) announced an update on Definitive Feasibility Study (DFS) wherein the company has reduced the Life of Mine (LOM) All-In Sustaining Cost (AISC) cost for US$746 per ounce (oz) from US$881/oz. Following this, the Syama Underground Probable Reserve increased by 38% to 3.0 Million ounces (Moz) of gold and the mine life also extended by four years from 2028 to 2032. Further, automation of underground mining equipment and Syama power upgrade are the key drivers of cost savings.
According to the management, reducing operating costs and increasing production at Syama is steady with its journey to build an operation that utilizes best-in-class technology while maintaining flexibility to incorporate further advances in mining and processing. The group aims to make Syama the best mine of its type in the world and to ensure to unlock the full potential of this outstanding orebody.
However, the management further stated that they are developing a new underground mine and are on track to commence sub-level caving in December 2018.
The group’s study focus at Syama will now turn to identify the optimal future mining rate based on the improved automated infrastructure that they have developed, and the significant progress being made on its processing capabilities. There is obvious scope to increase the current planned mining rate of 2.4 million tonnes per annum to as much as 4.0 million tonnes per annum. This is exciting and highly value creative pathway ahead for Resolute at Syama.
With the following update, the stock price rose by 1.95 per cent on July 03, 2018 and is trading at a reasonable P/E of 8.24x.
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