ASX-listed Resolute Mining expects second-quarter production at its Syama gold mine, in Mali, to be 30 000 oz, a decrease from the initial expectation of 40 000 oz to 45 000 oz, owing to logistical and supply chain disruptions that developed over the past four weeks because of significant security challenges in the country in late April and throughout May.

With anticipated improvements over the second half of the year, production at Syama is expected to be around the lower end of the guidance range of 195 000 oz to 210 000 oz for the full-year.

Resolute says Syama’s management responded swiftly to the disruptions, implementing a range of measures across mining, processing and planning activities to support operational continuity and position the operation for improved performance.

The company expects production to improve as access to higher-grade ore sources is restored, and the in-country security situation continues to stabilise.

The majority of operational challenges are a result of delays in the delivery of key equipment to mine the higher-grade sulphide orezones within the A21 openpit. This is owing to road insecurity in parts of Mali.

In the underground operations, grades have been lower than expected owing to intermittent blasting performance and temporary disruption in the supply of explosives following the recent in-country security situation.

As a result, the sulphide mill feed had an increased reliance on lower-grade stockpiles.

The planned three-week shutdown of the sulphide plant and roaster, which was scheduled to undergo maintenance in May, has been deferred to mid-June because of the current conditions in country.

Management has also extended the maintenance shutdown by one week to include additional preventive maintenance tasks to be carried out.

Syama remains an important asset within the company’s portfolio, with ongoing initiatives focused on stabilising operations, improving performance and unlocking long-term value through the Syama sulphide conversion project (SSCP), Resolute points out.

The company continues to work closely with the key openpit contractors to ensure delivery of equipment by the end of the planned maintenance shutdown; is increasing underground development capacity and securing additional operators to improve ore availability; and is accelerating openpit mining activities to access higher-grade fresh ore.

The extended maintenance shutdown is expected to increase the availability of the sulphide processing plant.

Moreover, processing optimisation initiatives are under way to improve overall plant throughput throughout the remainder of the year.

Resolute will provide a detailed operational update with its June quarterly results in July.

Despite the production impacts, the company says it continues to generate strong operating cash flows, supported by the positive gold price environment and disciplined cost management.

Meanwhile, at the Mako operation, in Senegal, production from stockpile processing remains on track with full-year guidance.

Construction of the Doropo gold project, in Côte d’Ivoire, remains on schedule, with development activities progressing in line with plan.

Exploration and study work across the portfolio, including the SSCP, continues to advance as planned, supporting the company’s medium- and long-term growth objectives.

“Recent performance at Syama has been below expectations despite the significant changes implemented in Mali. These issues are well understood and our focus is on stabilising operations and restoring consistent performance.

“Importantly, the broader business continues to perform well. The company remains cash generative, supporting ongoing investment in growth, including the Doropo development, which continues to progress to plan,” CEO Chris Eger says.