Resolute Mining is set to more than double its annual gold production within four years, aiming to exceed 500,000 ounces by expanding operations as the Doropo project progresses toward production.
Construction at Doropo is advancing on schedule, targeting first gold in the second half of 2028. The project boasts strong financials, including a post-tax net present value (NPV) of US$2.543 billion, an internal rate of return (IRR) of 72%, and a payback period of just 1.1 years based on a US$4,000 per ounce gold price.
CEO Chris Eger highlights that the increasing fiscal take by governments in the region, from about 50% to 60-65%, reflects a wider African trend rather than resource nationalism specific to Mali, where Resolute also operates.
Adding to its growth pipeline, Resolute has expanded the resource at its ABC project to over 3 million ounces, up from 2.2 million, positioning it as a strong candidate to become the company’s fourth mine in West Africa, with feasibility studies expected by the end of 2027.
Despite these promising developments, Resolute currently trades at a discount to its peers on key valuation metrics, including a price-to-net-asset-value ratio of 0.4x and an enterprise value per reserve ounce of US$172, the lowest in its peer group. Management attributes this discount to execution uncertainties and geopolitical risks in Mali, which they expect to diminish as Doropo comes online.
With Doropo’s launch and an expanding resource base, Resolute Mining is positioned for a significant step-change in scale and value in the coming years.
