Shares in Resolute Mining Limited (ASX: RSG) fell 1% to $1.33 on Thursday, after the company reported the latest figures on its gold production.
Resolute produced 284,000 ounces of gold in FY18, in line with its 280,000 ounces forecast. This result is not particularly impressive, considering the company had slashed its production guidance in April after reporting a weak quarter.
Throughout the year, Resolute operated at an all-in sustaining cost (AISC) of $1,355 per ounce, higher than most industry peers, including Regis Resources Limited (ASX: RRL) and Evolution Mining Ltd (ASX: EVN).
Despite selling at a relatively high average price of $1,703 per ounce, the company couldn't generate a positive cash flow and saw its cash balance drop to $113 million, down 19% in the last three months of FY18.
However, the future seems brighter for the gold miner. A new underground mine will open at Resolute's Syama project in Mali, ensuring an output of 300,000 ounces and lower production costs in FY19.
Resolute is also expanding its Ravenswood mine in Queensland, and should soon open a new gold project in Ghana. If everything proceeds according to plans, the company should be able to ramp up production, reaching the ambitious target of 500,000 ounces per annum by FY22.
