Resolute Mining Limited (ASX: RSG) headquartered in Perth, Australia, is a prominent African-focused gold mining company with over three decades of expertise in exploration, development, and operation.
The company operates two flagship gold mines: the Syama Gold Mine in Mali and the Mako Gold Mine in Senegal. Syama is a long-life asset featuring an underground mine and a sulphide processing circuit, complemented by satellite open-pit operations. Mako is a high-quality open pit mine known for its consistent performance and potential for life extension through nearby satellite deposits.
In addition to its operational assets, Resolute holds a 20% strategic interest in Loncor Gold Inc., a Canadian gold exploration company focused on the Ngayu Greenstone Belt in the Democratic Republic of Congo.
Acquisition Details & Key Terms
Resolute entered into an agreement with AngloGold Ashanti to acquire their Doropo and ABC projects in Côte d’Ivoire for a total of US$150 million with the deferred (US)$125 million split into a $50 million payment 18 months after closing and another $75 million paid 30 months after. Existing liquidity sources and external debt facilities are expected to be the main source of funding for the acquisition.
The deal also includes an uncapped net smelter return 2% royalty over the ABC Project’s existing exploration permits and a $10 million contingent payment after the Feasibility Study for ABC is released which outlines Mineral Reserves exceeding 1Moz of gold. A payment of $25 million is due to AngloGold in the case that the transfer of all Resolute’s permits in Guinea are not completed, the transfer is also subject to government approval and conditions.
Resolute already has an exploration portfolio in Côte d’Ivoire and the acquisitions are set to complement their operations in the area with expected production to increase above 500koz annually. Côte d’Ivoire has stable and well-established mining jurisdiction with several large gold mines entering production in recent years.
The ABC project is a greenfield exploration project with an Inferred Mineral Resource Estimate of 2.16Moz at a grade of 0.9g/t of gold.
Doropo
Doropo is a definitive feasibility study (DFS) project covering 1,850km2, located in the northeast of Côte d’Ivoire consisting of seven exploration permits, it has Mineral Reserves of 38.2 Mt (1.88Moz contained on a 100% basis) at a grade of 1.53g/t of gold. The 2024 DFS outlined an open pit operation to produce and average of 167koz yearly at an AISC of $1,047/oz over the span of 10 years feeding a 4.2 Mtpa plant with a construction capital estimate of $373 million.
The Doropo project is centred on mining a cluster of eleven deposits out of a total of sixteen deposits/prospects across the seven exploration permits. The Measured and Indicated Mineral Resources across the sixteen deposits comprise of 76.9 Mt (3.0 Moz) at 1.26g/t and 7.4 Mt at 1.23g/t Inferred Mineral Resources (0.28Moz).
Resolute plans to optimise and de-risk the 2024 DFS through a number of workstreams to update pit shell designs to align with the reserve gold price assumption at $1,450/oz, also to explore the addition of diesel backup power and to reevaluate the design layout of key components on site as well as refreshing cost estimates for 2025 pricing.
Resolute expects the acquisition to be highly accretive with the 2024 DFS outlining a post-tax IRR of 34% for Doropo and a 2.1-year payback period at a gold price assumed at $1,900/oz. They also expect to reach a final investment decision by the end of 2025 and the following two years will be for construction with first production expected in mid-2028.
Doropo received an environmental permit awarded in June 2024 with regulatory approval for its Environmental and Social Impact Assessment. Resolute is engaging with the Côte d’Ivoire government for the pending approval of the exploration permit.
Production Pathway
Their production timeline includes the expected closure of the acquisition in Q2 2025 as the deal is subject to no conditions with optimisation of the DFS spanning into Q4 2025. Project financing is expected to span from Q2 to Q4 2024 as well as permitting.
Early works are to commence in late Q1 2026 into mid Q3 2026 and FEED to run from late Q4 2025 to mid Q3 2025. Loan lead item procurement is planned from mid Q2 2026 to mid Q4 of the same year and construction, with the largest timeline, is to span from mid Q3 2026 to early Q3 2028. Commissioning is set for Q1 2028 to Q3 2028 with first gold and ramp up in the same quarter.
