Resolute Mining Q4 Earnings Call Highlights

Resolute Mining (LON:RSG) executives used the company’s Q4 2025 activities call to highlight stronger late-year operating performance, a larger cash balance, and a higher 2026 capital spending plan tied to project development in Côte d’Ivoire and plant upgrades in Mali.

Q4 performance: higher production, lower costs, stronger cash flow

Chief Executive Officer Chris Eger said the group “achieved all of our targets” in the fourth quarter and described operations as “very much stabilized,” setting up a “very strong foundation for 2026.” Group gold production was 66,000 ounces in Q4, up 6,000 ounces from Q3. Eger attributed the improvement to activities in Senegal and Mali, noting that supply chain issues in Mali—particularly around explosives—had been stabilized by year-end.

All-in sustaining costs (AISC) for the quarter were $1,877 per ounce, down from about $2,200 in Q3, which Eger linked to cost management and higher production. The company also reported a reduction in total recordable frequency rate (TRFR) to 1.87 from 1.95 in the prior quarter.

Capital expenditure in Q4 was $18 million, while operating cash flow rose to nearly $86 million from $70 million in Q3. Eger said Resolute ended 2025 with net cash of $209 million, representing roughly a $140 million increase from the start of the year.

Full-year 2025 results: guidance met, EBITDA up, unsold bullion noted

Eger said 2025 was a “transformational year,” with full-year gold poured of 277,000 ounces, within the company’s 275,000–285,000 ounce guidance range. Full-year AISC was $1,843 per ounce, in line with revised guidance, and capital spending totaled $118 million. The company reported EBITDA of $383 million.

Chief Financial Officer Dave Jackson said the $383 million EBITDA compared with $319 million in 2024. Revenue totaled $863 million from the sale of 259,000 ounces at an average realized price of $3,338 per ounce. Jackson added that Resolute remains fully unhedged and sells gold at spot prices.

Management emphasized that year-end metrics were affected by a build-up of bullion inventory. Jackson said net cash of $209 million included $135 million of unsold bullion—nearly 31,000 ounces—that was sold shortly after the quarter closed. Eger later explained that gold shipments typically occur on Fridays and that the calendar timing at year-end led to about two weeks’ worth of stock being shipped in early January.

Jackson also reported:

• $86 million of operating cash flow in Q4 and $314 million for the full year, which he attributed mainly to higher gold prices.
• $57 million drawn on overdraft facilities at quarter end, with about $113 million of in-country overdraft facilities available.
• $66 million of VAT outflows in 2025 across Mali and Senegal; $34 million of VAT mandates were obtained in Senegal, while VAT recovery remained a “source of cash leakage” in Mali.
• Available liquidity of over $322 million at the end of December, including gross cash and working capital facilities.

2026 guidance: lower production range, higher AISC and sharply higher CapEx

Resolute guided 2026 group production of 250,000–275,000 ounces, split between 195,000–210,000 ounces at its Mali complex (CMA) and 55,000–65,000 ounces at Mako in Senegal. Eger said Mako’s outlook reflects continued stockpile processing through 2026 and into 2027, while CMA will undergo a transition as the sulfide conversion work progresses.

Group AISC guidance was set at $2,000–$2,200 per ounce. Eger said a “significant reason” for the year-over-year increase is higher royalty expense tied to elevated gold prices, noting that royalties “at today’s gold price environment” add meaningfully to AISC.

Capital expenditure guidance for 2026 rose sharply to $310 million–$360 million. Management broke out key components, including:

• CMA (Mali): $110 million–$125 million, including about $40 million to complete the sulfide conversion program and about $40 million of waste stripping tied to developing the CMA North deposit.
• Mako (Senegal): $15 million–$20 million, largely related to projects at Tomboronkoto and Bantaco as part of mine life extension efforts.
• Doropo (Côte d’Ivoire): $170 million–$190 million, subject to permitting and final investment decision (FID), with most spending expected in the second half of the year.
• Exploration: $15 million–$25 million, with a focus on Côte d’Ivoire and an expansion into Guinea and Senegal.

Doropo: updated DFS, permitting path, and construction timeline

Chief Operating Officer Gavin Harris detailed progress at Doropo in Côte d’Ivoire, which Resolute acquired in May 2025 along with the ABC project. Harris said an updated DFS released on Dec. 15 outlined a “significantly larger project,” including a 55% increase in gold reserves and an extension of mine life. The updated DFS used a base case gold price of $1,950 per ounce for life-of-mine assumptions and referenced $2,000 pit shells for permitting purposes.

Harris said upfront capital costs were estimated at $516 million, reflecting inflation and scope changes such as increased processing capacity, expanded water storage, and a larger tailings facility, along with higher resettlement-related costs and the inclusion of previously omitted items. Financial metrics cited from the DFS at $3,000 per ounce included a post-tax NPV of $1.46 billion (5% discount rate), a 49% IRR, a 1.7-year payback period, and average free cash flow of more than $260 million per year over the first five years.

On timing, Harris said Resolute is awaiting approval of the mining permit, with the permitting process having slowed due to elections. The company expects the final stages—interministerial commission approval followed by a presidential decree—to progress over the coming months. Assuming FID by the end of Q1 2026, Harris outlined a schedule with construction beginning mid-Q2 2026, commissioning in early 2028, and first gold toward the end of the first half of 2028.

Mali and Senegal operations: stabilization, plant transition, and life-extension work

In Mali, Harris said CMA produced 47.2 thousand ounces in Q4 and finished 2025 at 176.3 thousand ounces at an AISC of $2,008 per ounce, reaching the low end of guidance. He cited improved access to explosives—using alternative products and supplies—as a key driver of the Q4 improvement, and noted an underground ore production record of more than 250,000 tons in a single month during the quarter.

Harris also described a management restructuring in the second half of 2025, an operational review focused on underground optimization and cost reduction, and ongoing work to evaluate additional improvement opportunities through 2026. The CMA sulfide conversion project (SSCP) was described as on time and on budget, with stage one commissioning expected in Q2 2026 and stage two in Q3. For 2026, Harris said CMA production would be weighted to the second half due to open pit optimization work and the SSCP ramp-up.

On supply chain risk, Harris said explosives transported in Mali require government escorts, and that convoy frequency has improved. He added that Resolute is pursuing construction of on-site explosive manufacturing capacity with suppliers, with expectations for construction during 2026.

In Senegal, Harris said Mako delivered 100.3 thousand ounces in 2025 at an AISC of $1,270 per ounce, benefitting in Q4 from higher-than-forecast stockpile grades despite the shift to stockpile processing in the second half. For 2026, Mako guidance calls for 55,000–65,000 ounces at $1,600–$1,800 per ounce AISC, reflecting lower stockpile grades and higher royalties in a higher gold price environment.

Harris also discussed the Mako Life Extension Project (MLEP), including work at Tomboronkoto and Bantaco. He said the Tomboronkoto ESIA had been pre-validated and was pending ministerial approval, with permitting anticipated by the end of 2026 assuming no major revisions. Bantaco technical studies, infill drilling, and permitting work are planned, with Bantaco ore delivery targeted to begin in Q4 2027 as a bridge between stockpile processing and Tomboronkoto ore supply.

Management reiterated that exploration remains a strategic focus. Eger said 2025 exploration spending was just under $25 million and that 2026 spending would be “around the same,” with more emphasis on Côte d’Ivoire and new reconnaissance work in Guinea’s Siguiri Basin. The company also plans scoping studies at both the ABC and Ledabo projects, which Eger said could support the development of a potential “fourth producing asset” over time.

About Resolute Mining (LON:RSG)

Resolute is an African-focused gold miner with more than 30 years of experience as an explorer, developer and operator. Throughout its history the Company has produced more than 9 million ounces of gold from ten gold mines. The Company is now entering a growth phase through the development of the Doropo project in Côte d’Ivoire which will supplement the existing production from the Syama mine in Mali and Mako mine in Senegal. The Company trades on the Australian Securities Exchange (ASX) and the London Stock Exchange (LSE) under the ticker RSG.