ASX-listed Resolute Mining has reported a positive start to this year at both its operations in Senegal and Mali, as well as at its development and exploration projects.

In its report for the quarter ended March 31, Resolute CEO Chris Eger says the company’s operations continued to perform in line with expectations and generated $119.8-million of operating cash flows, which boosted its net cash position to $315.4-million.

Group gold production totalled 59 603 oz for the period, in line with expectations at Mako, in Senegal, and Syama, in Mali.

All-in sustaining costs (AISC) for the period came to $2 210/oz, in line with guidance as cost reductions partially offset higher royalty payments owing to record average realised gold prices.

Capital expenditure (capex) for the quarter amounted to $33.4-million, consisting of $14.3-million non-sustaining, $6.9-million sustaining and $5.1-million in exploration funding. A further $7.1-million in capex was invested at the Doropo project, in Côte d'Ivoire, and at the Mako Life Extension Project (MLEP).

Operating cash flow generation before capex, exploration and working capital was $119.8-million, while net cash was $315.4-million, including cash, cash equivalents and bullion of $327.6-million.

Eger notes that progress was made on technical and permitting workstreams for the MLEP.

Internal technical studies currently indicate gold production levels of 75 000 oz/y to 85 000 oz/y over seven years from the Tomboronkoto and Bantaco deposits at a capital cost of between $125-million and $150-million.

“We are continuing with optimisations and are confident of further improvements to the project.”

Drawn overdraft balances and equipment financing were $12.2-million.

The company also notes that proceeds of $31.9-million were received from the sale of Resolute's stake in TSX-listed Loncor Gold.

Eger says Resolute remains on track to meet its full-year production guidance, which is weighted to the second half of the year as the Syama sulphide conversion project is commissioned and ramps up.

Resolute had a successful quarter at the Doropo project, as well as at its ABC project, which is also in Côte d'Ivoire.

At ABC, the company has been focusing on strike extensions of the Kona South and Central deposits that have an existing mineral resource estimate (MRE) of 2.2-million ounces.

“With the success we have been seeing at ABC, including an intercept from surface of 73 m grading 0.8 g/t, we will continue drilling in order to further expand resources,” says Eger.

During the quarter, Eger says, the company started a scoping study for ABC, based on the existing MRE, which the company expects to release in the second quarter.

At Doropo, he notes, the company achieved two major milestones, namely the receipt of its mining permit and formal approval of the final investment decision.

In April, ground clearance activities started and he says Resolute remains on track for first gold in the second half of 2028.

Further, in Senegal, stockpile processing at Mako continued to perform extremely well.

During the quarter, Resolute also signed a strategic memorandum of understanding with Nimba Mining Company to evaluate projects in Guinea.

Eger says this aligns with Resolute's strategy of building a pipeline of high-quality growth opportunities in established West African gold jurisdictions and complements its other activities in Guinea.

Meanwhile, Eger notes that, while the ongoing situation in the Middle East has not resulted in any direct disruptions to the company’s supply chain, Resolute is closely monitoring developments.

Eger explains that there is a potential for increased AISC owing to rising fuel prices, which could impact on the company’s operational costs in the coming quarters.

“At this stage, we are proactively managing these risks and, where possible, minimising any impacts,” he says.

The company is on track to meet production guidance of 250 000 oz to 275 000 oz and maintains its group AISC of $2 000/oz to $2 200/oz.

The company notes, however, that this is subject to change at current elevated gold prices and higher fuel costs.

“Overall, I am pleased with the group's activities and financials in the first quarter. We remain confident in delivering against our guidance, supported by a robust balance sheet and experienced teams, that are well placed to continue performing across the business as we move into the second quarter,” says Eger.