Resolute Mining (ASX:RSG) has conformed it successfully sold the Ravenswood gold mine in Queensland to a partnership of EMR Capital Management and Golden Energy and Resources. Resolute received an initial A$50M in cash and an A$50M promissory note which has a 6% coupon, while Resolute could earn an additional A$200M of which A$50M is linked to the gold price and A$150M is linked to the actual operational and financial performance of the Ravenswood Mine generated by the EMR Fund.
Selling the Ravenswood Gold Mine also was an excellent occasion for Resolute to update its full year guidance, and the company now expects to produce 430,000 ounces of gold at an all-in sustaining cost of around US$980/oz. About 260,000 ounces will be produced in Mali at an AISC of $960/oz while 160,000 ounces will be produced in Senegal where the Mako gold mine is expected to have an average production cost of US$800/oz on an all-in sustaining basis.
Disclosure: The author has no position in Resolute Mining.
