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Resolute Mining Limited (AU:RSG)
ASX:RSG
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Resolute Mining (RSG) AI Stock Analysis

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AU:RSG

Resolute Mining

(Sydney:RSG)

Rating:61Neutral
Price Target:
AU$0.50
▼(-28.57% Downside)
Resolute Mining's stock score is primarily influenced by its mixed financial performance and high valuation concerns. However, positive technical indicators and a strong earnings call with strategic growth initiatives provide some optimism. The company needs to address profitability and cash flow issues to improve its financial standing.

Resolute Mining (RSG) vs. iShares MSCI Australia ETF (EWA)

Resolute Mining Business Overview & Revenue Model

Company DescriptionResolute Mining Limited (RSG) is an established gold mining company based in Perth, Australia. It operates several gold mining projects primarily in Africa, with a focus on sustainable development and exploration. The company's core services include the extraction, processing, and sale of gold, leveraging advanced technologies to maximize efficiency and reduce environmental impact.
How the Company Makes MoneyResolute Mining makes money through the exploration, extraction, and sale of gold from its mining operations. Its key revenue streams include the sale of gold produced from its mines, typically done through direct sales to gold refineries or trading companies. Significant factors contributing to its earnings include operational efficiencies, resource management, and strategic investments in exploration to expand its mineral reserves. The company may also engage in joint ventures or partnerships to optimize its mining operations and share risks associated with large-scale projects.

Resolute Mining Earnings Call Summary

Earnings Call Date:Aug 21, 2025
(Q2-2025)
|
% Change Since: |
Next Earnings Date:Feb 20, 2026
Earnings Call Sentiment Positive
The earnings call presented a robust financial and operational performance with strong production figures, strategic acquisitions, and promising project developments. However, challenges such as supply chain issues in Mali and permitting concerns in Côte d'Ivoire present notable risks. Despite these challenges, the overall performance and strategic direction are positive.
Q2-2025 Updates
Positive Updates
Strong Production and Cash Flow
Resolute Mining reported a very healthy production of 75,962 ounces in Q2, similar to Q1, with a strong cash flow ending the quarter with a net cash position of just above $110 million.
Acquisition of Doropo & ABC Projects
Resolute Mining acquired the Doropo & ABC projects from AngloGold Ashanti, which is expected to transform Resolute into a premier mining business in Africa.
Mako Operation Performance
Mako operation in Senegal had a strong quarter with production of about 35,000 ounces at an AISC of $972, exceeding expectations.
Financial Performance
The company exceeded expectations with a quarterly operating cash flow of $85 million, driven by $263 million in revenue and supported by 80,000 ounces of gold sales at a high gold price of over $3,400 per ounce.
Syama Sulphide Conversion Project
The SSCP at Syama is well on track, with commissioning of key equipment planned for the second half of the year and next year, creating greater operational flexibility.
Negative Updates
Challenges in Mali
Syama operation in Mali faced challenges with explosive supply chain issues due to security challenges, impacting production volumes and increasing AISC.
Permitting Concerns
Permitting process for the Doropo project is a concern as it is outside the company's control, with delays expected due to upcoming elections in Côte d'Ivoire.
Working Capital and VAT Outflows
VAT outflows for the first half totaled $32 million across both Mali and Senegal, remaining a source of cash leakage despite positive discussions with local governments.
Company Guidance
During Resolute Mining's Q2 call, CEO Christopher Eger highlighted several key metrics and developments. The company reported a strong quarter with production of 75,962 ounces of gold at an all-in sustaining cost (AISC) of $1,668 per ounce, maintaining a net cash position of over $110 million. The company also acquired the Doropo & ABC projects, aiming to increase production to over 500,000 ounces by 2028. In Mali, the Syama mine produced 41,000 ounces at an AISC of $2,134, facing challenges due to explosive supply chain issues. Meanwhile, the Mako operation in Senegal performed strongly, producing approximately 35,000 ounces at an AISC of $972. The company also made progress on the Syama Sulphide Conversion Project, spending around $30 million this year. Financially, the group achieved $85 million in operating cash flow, driven by $263 million in revenue and sales of 80,000 ounces at an all-time high gold price of over $3,400 per ounce. Overall, Resolute Mining is on track to meet its full-year production and cost guidance, with continued strong cash flow and strategic growth initiatives in West Africa.

Resolute Mining Financial Statement Overview

Summary
Resolute Mining Limited shows a mixed financial performance. Revenue and gross profit have improved, but profitability remains a challenge. While debt levels have decreased, liquidity issues persist, with zero operating cash flow in the latest period. The company must address profitability and cash flow generation to stabilize its financial position.
Income Statement
55
Neutral
The company has experienced inconsistent revenue growth, with a recent increase in total revenue but negative net income in the latest period. Gross profit margin improved over the past two years, indicating better cost management, but EBIT margin and net profit margin are concerning due to the negative net income and EBIT in the latest period.
Balance Sheet
60
Neutral
Resolute Mining has managed to reduce its total debt significantly, improving its debt-to-equity ratio. However, the return on equity has been volatile and negatively impacted by recent losses. The equity ratio is relatively stable, suggesting a balanced approach to financing with equity.
Cash Flow
50
Neutral
Cash flow from operations has fluctuated, with a concerning drop to zero in the latest period. Free cash flow showed a positive trend over the last two years, but the lack of operating cash flow is a risk. The company needs to focus on improving operational efficiency to boost cash flow generation.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue1.17B800.97M631.07M651.13M549.24M602.99M
Gross Profit321.02M219.63M113.34M93.92M46.57M104.19M
EBITDA222.56M28.01M109.91M99.29M-190.20M15.48M
Net Income43.40M-28.30M65.58M-34.66M-319.20M15.94M
Balance Sheet
Total Assets1.63B819.56M853.08M868.79M984.20M1.42B
Cash, Cash Equivalents and Short-Term Investments151.90M69.27M59.77M80.87M88.44M124.59M
Total Debt85.82M43.79M84.29M141.03M327.78M359.78M
Total Liabilities739.10M336.34M310.90M397.30M558.64M609.85M
Stockholders Equity960.53M537.76M590.15M543.43M495.63M835.74M
Cash Flow
Free Cash Flow60.70M10.19M34.77M23.12M-11.11M-41.03M
Operating Cash Flow73.02M115.01M106.45M90.91M45.11M42.44M
Investing Cash Flow-175.25M-70.39M-68.90M15.17M-25.07M-52.98M
Financing Cash Flow-6.00M-36.52M-57.35M-97.84M-49.49M16.61M

Resolute Mining Technical Analysis

Technical Analysis Sentiment
Positive
Last Price0.70
Price Trends
50DMA
0.66
Positive
100DMA
0.62
Positive
200DMA
0.51
Positive
Market Momentum
MACD
<0.01
Positive
RSI
53.88
Neutral
STOCH
62.78
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:RSG, the sentiment is Positive. The current price of 0.7 is above the 20-day moving average (MA) of 0.69, above the 50-day MA of 0.66, and above the 200-day MA of 0.51, indicating a bullish trend. The MACD of <0.01 indicates Positive momentum. The RSI at 53.88 is Neutral, neither overbought nor oversold. The STOCH value of 62.78 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AU:RSG.

Resolute Mining Peers Comparison

Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
62
Neutral
$10.36B6.350.76%2.84%3.10%-36.03%
61
Neutral
$1.47B82.351.55%42.75%-5.56%
C$5.02B9.8421.17%1.48%
$2.27B10.1326.84%
$1.78B32.1814.25%
$2.39B15.7916.68%
$4.20B8.5128.58%2.13%
* Basic Materials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AU:RSG
Resolute Mining
0.70
0.06
9.37%
TSE:PRU
Perseus Mining
3.83
1.67
77.31%
WFRSF
West African Resources Ltd
1.90
0.86
82.69%
EOGSF
Emerald Resources NL
2.80
0.30
12.00%
RGRNF
Regis Resources Limited
3.42
2.08
155.22%
RMLRF
Ramelius Resources Limited
2.30
0.95
70.37%

Resolute Mining Corporate Events

Resolute Mining Reports Stable Q2 2025 Performance and Strategic Acquisitions
Jul 28, 2025

Resolute Mining Limited reported its Q2 2025 activities, highlighting stable gold production and improved financial performance. The company achieved a group gold production of 75,962 ounces and increased its cash position to over $110 million. Key developments include the acquisition of the Doropo and ABC Projects in Côte d’Ivoire, which are expected to drive future growth and diversification. Additionally, Resolute made progress in extending the Mako Mine in Senegal and reported an initial mineral resource estimate at the Bantaco Project. Despite a slight increase in the Total Recordable Injury Frequency Rate, the company remains committed to safety and operational efficiency.

Resolute Mining to Host Q2 2025 Conference Call
Jul 24, 2025

Resolute Mining Limited announced that its CEO, Chris Eger, will host a conference call on 29 July 2025 to discuss the company’s Quarterly Activities Report for the period ending 30 June 2025. This event will provide investors, analysts, and media with insights into the company’s recent performance and strategic direction, potentially impacting stakeholder perceptions and market positioning.

Resolute Mining Issues New Shares Following Performance Rights Conversion
Jul 23, 2025

Resolute Mining Limited has issued 646,000 fully paid ordinary shares following the conversion of performance rights, as part of its compliance with the Corporations Act 2001. This issuance was conducted without the need for disclosure to investors, and the company has confirmed its adherence to relevant legal provisions, ensuring transparency and regulatory compliance.

Resolute Mining Expands ASX Quotation with New Securities
Jul 23, 2025

Resolute Mining Limited has announced the quotation of 646,000 new ordinary fully paid securities on the Australian Securities Exchange (ASX) as of July 21, 2025. This move is part of the company’s strategy to enhance its financial flexibility and support its ongoing operations, potentially impacting its market position and offering new opportunities for stakeholders.

Citigroup Ceases to be Substantial Holder in Resolute Mining
Jul 4, 2025

Resolute Mining Ltd, a company listed on the stock market, has experienced a change in its substantial shareholders. Citigroup Global Markets Australia Pty Limited, along with its related corporate bodies, has ceased to be a substantial holder in Resolute Mining Ltd as of July 2, 2025. This change reflects a decrease in Citigroup’s relevant interest in the company’s shares, specifically due to securities lending agreements. This development may impact Resolute Mining’s market dynamics and shareholder structure, potentially influencing its future operations and stakeholder engagements.

Goldman Sachs Ceases Substantial Shareholding in Resolute Mining
Jul 3, 2025

The Goldman Sachs Group, Inc. has ceased to be a substantial shareholder in Resolute Mining Limited as of July 1, 2025. This change in shareholding could impact Resolute Mining’s market dynamics and investor relations, as Goldman Sachs’ involvement often signifies a level of financial endorsement and stability.

Citigroup Becomes Substantial Shareholder in Resolute Mining
Jul 3, 2025

Resolute Mining Ltd has announced that Citigroup Global Markets Australia Pty Limited, along with its related corporate bodies, has become a substantial shareholder in the company as of July 1, 2025. Citigroup now holds a 7.3610% voting power in Resolute Mining, indicating a significant stake in the company’s ordinary fully paid shares. This development could impact Resolute Mining’s operations and market positioning, as Citigroup’s involvement may influence strategic decisions and shareholder dynamics.

Helikon Investments Acquires Substantial Stake in Resolute Mining
Jul 2, 2025

Helikon Investments Limited has become a substantial holder in Resolute Mining Limited, acquiring a 6.9179% voting power through 147,286,546 fully paid ordinary shares. This acquisition indicates a significant investment by Helikon, potentially impacting Resolute Mining’s shareholder dynamics and market perception.

Resolute Mining Announces Change in Substantial Holdings
Jul 1, 2025

Resolute Mining Limited has announced a change in substantial holdings, indicating that Mitsubishi UFJ Financial Group, Inc. has ceased to be a substantial holder. This change is due to the purchase of securities by an entity controlled by Morgan Stanley, impacting the voting securities of the company.

Resolute Mining Acquires Substantial Holding in Mitsubishi UFJ Financial Group
Jun 30, 2025

Resolute Mining Ltd has become a substantial holder in Mitsubishi UFJ Financial Group, Inc., a significant player in the financial services industry. This development indicates Resolute Mining’s strategic interest in Mitsubishi UFJ Financial Group, which holds considerable voting power in entities like Morgan Stanley and First Sentier Investors Holdings Pty Limited. The acquisition of these shares could impact Resolute Mining’s market positioning and influence within the financial sector.

Resolute Mining Sees Change in Substantial Holders
Jun 30, 2025

Resolute Mining has announced that First Sentier Investors and its associated entities have ceased to be substantial holders in the company as of June 26, 2025. This change in substantial holding could impact Resolute Mining’s shareholder dynamics and influence its market strategies, as the company adjusts to the altered investment landscape.

Resolute Mining Sees Shift in Shareholder Structure
Jun 27, 2025

Resolute Mining has announced a significant change in its shareholder structure, with First Sentier Investors Holdings Pty Limited and its subsidiaries acquiring a substantial voting power in the company. This development, effective from June 25, 2025, signifies a strategic move by Mitsubishi UFJ Financial Group, Inc., the ultimate parent of First Sentier, to consolidate its influence in Resolute Mining, potentially impacting the company’s future governance and strategic direction.

State Street Corporation Becomes Substantial Holder in Resolute Mining
Jun 20, 2025

Resolute Mining has announced that State Street Corporation and its subsidiaries have become substantial holders in the company as of June 18, 2025. This development indicates a significant shift in the voting power and potential influence over Resolute Mining’s strategic decisions, as State Street Corporation now holds a substantial number of shares, which could impact the company’s future operations and market positioning.

Citigroup Becomes Substantial Shareholder in Resolute Mining
Jun 19, 2025

Resolute Mining Ltd has announced that Citigroup Global Markets Australia Pty Limited, along with its related corporate bodies, has become a substantial shareholder in the company as of June 17, 2025. Citigroup now holds a 7.1811% voting power in Resolute Mining, with a total of 152,888,840 ordinary fully paid shares. This development indicates a significant investment by Citigroup in Resolute Mining, which could impact the company’s market positioning and stakeholder interests.

Resolute Mining Appoints New COO to Drive Operational Growth
Jun 11, 2025

Resolute Mining has announced the appointment of Gavin Harris as the new Chief Operating Officer, effective from July 1, 2025, following Geoff Montgomery’s decision to step down. Harris brings over 20 years of experience in mining, having held senior roles at notable companies and projects, including the Sukari Gold Mine, where he achieved significant production and cost efficiency milestones. His expertise is expected to drive Resolute’s operational growth and efficiency, particularly at the Syama and Mako mines and the upcoming Doropo project.

Resolute Mining Upholds High Corporate Governance Standards
May 26, 2025

Resolute Mining Limited has adopted the Fourth Edition of the Corporate Governance Principles and Recommendations by the ASX Corporate Governance Council, confirming adherence for the financial year ended 31 December 2024. The company emphasizes transparency, accountability, and a commitment to diversity and inclusion, with specific gender diversity targets set for 2025. The governance statement highlights the company’s strategic direction, risk management, and commitment to eliminating the gender pay gap.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Sep 02, 2025