The Resolute Mining Limited (ASX: RSG) share price has been one of the best performers on the ASX 200 on Tuesday.
At the time of writing the gold miner's shares are up a sizeable 6% to $1.21.
Why is the Resolute share price surging higher today?
As well as getting a boost from demand for risk off assets following a disappointing night of trade on Wall Street, this morning Resolute released its second quarter update which revealed an impressive jump in production on the previous quarter.
According to the release, during the December quarter Resolute's gold production increased 33% on the prior quarter to 74,000 ounces.
This was achieved at an all-in sustaining cost (AISC) of A$1,360 an ounce (US$975 an ounce), which was down 13% on the prior quarter.
During the quarter the company sold 67,211 ounces of gold at an average of A$1,739 (US$1,246) an ounce. Meaning a cash margin of A$379 or US$271 an ounce.
Management has maintained its FY 2019 guidance of 300,000 ounces of gold at an AISC of A$1,280 (US$960) an ounce.
What happened during the quarter?
Management explained that a key driver of this solid quarter was the performance was its Syama operation which saw its production and costs materially improve.
This was supported by its Tabakoroni operation and its high grade ore which helped deliver record quarterly production from its oxide circuit.
In addition to this, the company successfully commissioned Project 85 which comprised a series of sulphide processing plant upgrades allowing Resolute to achieve improved recoveries from high-grade ore sourced from its new sublevel cave.
Should you invest?
If you're looking for a little exposure to the gold miners, then I think Resolute is one of the best on the Australian share market to consider along with Northern Star Resources Ltd (ASX: NST), Regis Resources Limited (ASX: RRL), and St Barbara Ltd (ASX: SBM).
This is due to its improving operational performance, falling costs, and promising exploration prospects.
