Resolute Mining : December 2020 Quarterly Activities Statement

for the period ended 31 December 2020

28 January 2021

Highlights

• Total Recordable Injury Frequency Rate (TRIFR) reduced to 0.87
• Quarterly production of 89,888 ounces (oz), a 3% increase compared to the September quarter, bringing CY20 production to 395,136oz (CY19 production of 384,731oz)
• Realised gold price for the quarter averaged US$1,719/oz compared to the average spot price of US$1,877/oz
• All-InSustaining Cost (AISC) of US$1,002/oz for the quarter bringing year to date AISC to US$1,074/oz (CY19 AISC of US$1,095/oz)
• Cash and bullion of US$106.5 million reducing net debt to US$230.4 million at 31 December 2020
• Agreement reached for sale of Bibiani Gold Mine for US$105 million
• Guidance for 2021 of 350,000oz to 375,000oz at a forecast AISC between US$1,200/oz and US$1,275/oz
• Tabakoroni Mineral Resource increased to 1.3Moz at 4.9g/t Au

Resolute Mining Limited (Resolute or the Company) (ASX/LSE: RSG) presents its Quarterly Activities Report for the period ended 31 December 2020.

Resolute's safety performance continued to improve with TRIFR halved to 0.87 over the preceding 12 months, despite the challenges posed by the COVID-19 pandemic.

Resolute's quarterly production of 89,888oz at an AISC of US$1,002/oz during the December quarter was driven by another strong performance from the Mako Gold Mine (Mako) in Senegal and an improved performance from the Syama Sulphide operation.

Production at the Syama Sulphide operation increased by 15% compared to the prior quarter despite a number of local and national strikes called during the December quarter. Processing operations were not significantly affected, as Resolute capitalised on the ore stockpiles at both the oxide and sulphide plants to ensure continuity of production. Syama Oxide production was affected by the late arrival of mining equipment to the Cashew Open pit which delayed access to higher grade ore, together with material handling issues associated with viscous, low density ores.

During the quarter, Resolute announced the Sale of Bibiani Gold Mine for US$105 million in cash to Chifeng Jilong Gold Mining Co. Ltd (Chifeng). Proceeds from the sale will be used to repay debt and strengthen Resolute's balance sheet.

Guidance for 2021 has been set at gold poured of between 350,000oz to 375,000oz at an AISC of between US$1,200/oz and US$1,275/oz inclusive of corporate overheads. The focus for 2021 will be operational consistency and cash generation.

Operating Performance Snapshot

Resolute's consolidated operational performance measures compared to the previous quarter and prior comparable quarter are set out in the table below:

	Group Level Summary			Units			December			September			Change			2019 Quarter
					2020 Quarter			2020 Quarter
	Mining
	Ore Mined		t	1,506,731		1,169,921		29%		1,810,718
	Mined Grade		g/t Au	2.35		2.32		1%		2.43
	Processing
	Ore Processed		t	1,377,158		1,320,046		4%		1,853,631
	Processed Grade		g/t Au	2.37		2.24		6%		2.10
	Recovery	%		86.4		87.4		(1%)		84.0
	Gold Recovered		oz	90,755		83,206		9%		104,433
	Gold Poured		oz	89,888		87,303		3%		105,293
	Sales
	Gold Sold		oz	91,607		90,900		1%		90,731
	Average Realised Price		US$/oz	1,719		1,694		1%		1,421
	Cost
	All-In Sustaining Cost (AISC)		US$/oz	1,002		1,284		22%		1,419

Table 1: Resolute Group Operational Performance Summary

Refer to the Appendix for a full summary of Resolute's production and costs in the December quarter and year to date (12 months ended 31 December 2020).

Sustainability

Health and Safety

The Company's TRIFR as at 31 December 2020 was 0.87 compared to 2.09 at 31 December 2019. Resolute continues to maintain effective infection control measures to protect employees and contractors at all sites and offices from the COVID-19 pandemic. In addition, critical hazard management standards have been developed to support health and safety across the Group. The implementation of these standards at our sites is a key area of Health and Safety focus in 2021.

COVID-19

A comprehensive response plan remains in place to manage the COVID-19 at all locations. This plan reinforces the maintenance of hygiene, use of PPE, and social distancing measures, together with testing and mandatory isolation procedures for positive cases amongst the workforce. The implemented protocols prioritise the health and safety of the workforce and have enabled operational continuity to minimise the impacts on gold production. Further information on Resolute's COVID-19 response is available at https://www.rml.com.au/covid-19/covid-19-update/.

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Syama, Mali

Gold production at Syama during the quarter totalled 46,501oz at an AISC of US$1,053/oz. The performance for Syama Sulphide and Oxide operations are set out in the Tables below.

Syama Sulphide Operations

				Mining						Processing					Cost
				Ore			Grade			Ore			Grade			Recovery			Gold			AISC
	Period													Poured
			(t)			(g/t Au)			(t)			(g/t Au)			(%)					(US$/oz)
													(oz)
	March 2020 Quarter	519,898		2.61		441,542		2.62		75.2		21,430		1,629
	June 2020 Quarter	492,863		2.84		536,791		2.67		80.0		35,249		1,333
	September 2020 Quarter	506,702		2.37		495,947		2.38		79.5		31,074		1,766
	December 2020 Quarter	577,958		2.55		556,543		2.55		77.8		35,747		1,235
	YTD	2,097,421		2.59		2,030,823		2.55		78.2		123,500		1,465

Table 2: Sulphide Production and Cost Summary

Underground mining tonnages increased by 14% compared to the September quarter despite ongoing disruptions from industrial action. The 577,958 tonnes mined was record for the Syama underground operation. The mine is now consistently achieving its nameplate production rate of 2.4Mtpa.

Syama sulphide processing rates and gold production rebounded after industrial action affected operations in the September quarter. The total processed tonnage was 12% higher, and the highest for the year. Grades also improved resulting in a 15% increase in gold poured relative to the September quarter.

Gold production for the quarter was the highest for the year at 35,747oz, a 15% on increase the September quarter despite ongoing industrial action which affected circuit stability. This instability is reflected in overall recoveries for the quarter of 77.8%, lowering full year recoveries to 78.2%.

Underground sulphide ore stocks at Syama decreased from 501,000t to 498,000t at an average grade of 2.33 grams per tonne of gold. The large quantity of run-of-mine stockpiled underground ore at Syama continues to provide significant operational flexibility in managing mining and processing rates.

Syama Oxide Operations

				Mining						Processing					Costs
				Ore			Grade			Ore			Grade			Recovery			Gold			AISC
	Period													Poured
			(t)			(g/t Au)			(t)			(g/t Au)			(%)					(US$/oz)
													(oz)
	March 2020 Quarter	699,053		2.50		387,633		3.21		91.2		36,101		747
	June 2020 Quarter	370,748		1.98		383,667		2.44		95.0		28,457		840
	September 2020 Quarter	-		-		339,540		1.44		89.0		15,548		1,354
	December 2020 Quarter	251,879		1.94		305,275		1.43		89.3		10,754		447
	YTD	1,321,679		2.24		1,416,116		2.19		91.2		90,860		844

Table 3: Oxide Production and Cost Summary

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Oxide ore mining recommenced in the December quarter at the new Cashew open pit. Grades increased as a result of supply from the new open pit. However, overall volumes of high-grade ore were below target due to the late arrival of contractor earthmoving equipment.

Processing volumes were affected by material handling issues arising from processing of low-density sticky ore from the Cashew pit.

Significant stockpiles of 2.5 million tonnes of oxide ore at an average grade of 1.36g/t Au have been built and will be processed over 2021 and 2022.

Mako, Senegal

Gold production at Mako during the quarter totalled 43,387oz at an AISC of US$916/oz. The operational performance for Syama is set out in the Table below.

				Mining						Processing					Cost
				Ore			Grade			Ore			Grade			Recovery			Gold			AISC
	Period													Poured
			(t)			(g/t Au)			(t)			(g/t Au)			(%)					(US$/oz)
													(oz)
	March 2020 Quarter	719,097		2.28		558,839		2.67		92.8		42,185		694
	June 2020 Quarter	685,028		2.37		519,141		2.69		92.8		43,478		821
	September 2020 Quarter	663,219		2.27		484,559		2.65		94.5		40,681		810
	December 2020 Quarter	676,894		2.33		515,339		2.74		93.8		43,387		916
	YTD	2,744,238		2.31		2,077,879		2.69		93.5		169,731		812

Table 4: Mako Production and Cost Summary

Mako continues to perform well, with ore and waste mining volumes consistent with the prior quarter. Total mining volumes for the second half of 2020 were 21% higher than the first half, as additional excavator capacity and improved equipment maintenance resulted in improved productivity

Throughput was 6% higher than the September quarter following a planned shut down for a SAG mill reline in August. A plant capacity review is underway to identify, and address process bottlenecks to improve throughput. Stockpiles in excess of 2.5Mt of ore at an average grade of 1.18g/t Au are available for processing at Mako.

Sale of Bibiani Gold Mine, Ghana

During the quarter Resolute announced that it had agreed to sell its interest in the Bibiani Gold Mine (Bibiani), through the sale of shares in Mensin Bibiani Pty Ltd, to Chijin International (HK) Limited, a wholly owned subsidiary of Chifeng, for total cash consideration of US$105 million (See ASX Announcement 15 December 2020).

Resolute and Chifeng are committed to ensuring an orderly transition of ownership at Bibiani. Chifeng is committed to injecting the necessary capital to achieve the rapid restart of Bibiani to ensure that all local and national stakeholders benefit from the economic and social advantages that the successful operation of the mine will provide. The transaction is not expected to result in any immediate changes to employment or contract relationships at Bibiani with Chifeng seeking to retain all existing local employees in future activities.

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