Mali challenges force Resolute Mining to cut Syama outlook

Resolute Mining (ASX, LON: RSG) has cut 2026 production guidance for its Syama gold mine in Mali by about a quarter as supply disruptions and mining constraints restrict access to higher-grade ore.

The West Africa-focused producer now expects Syama to produce 150,000 to 160,000 ounces of gold this year at all-in sustaining costs (AISC) of $2,300 to $2,400 per oz., compared with previous guidance of 195,000 to 210,000 oz. at $1,950 to $2,150 per oz.

“Despite continued efforts to improve operational performance, the challenging operating environment in Mali has resulted in production remaining below expectations, requiring an update to the company’s guidance,” chief executive officer Chris Eger said in a statement.

The setback at Syama has also pushed Resolute’s group guidance down to 205,000 to 225,000 oz. at an AISC of $2,250 to $2,350 per oz. The company previously forecast 250,000 to 275,000 oz. at $2,000 to $2,200 per oz. 

Production at its Mako mine in Senegal remains on track, while construction of Doropo in Côte d’Ivoire is on schedule and budget, it said.

Mining constraints

Syama has remained below plan since Resolute’s second-quarter activities report as delays moving critical supplies, consumables and mining equipment through Mali disrupted underground and open-pit operations and sulphide processing.

Underground mining has been constrained by intermittent explosives supplies during the wet season. Low emulsion availability forced the company to use ammonium nitrate-fuel oil where possible, while wet conditions delayed development and production from new draw points.

Open-pit mining at A21 has also progressed more slowly than planned, postponing access to higher-grade ore. Resolute has switched mining contractors and is supporting an accelerated mobilization program aimed at increasing productivity and restoring access to planned ore sources.

The problems hit July and August particularly hard, when Syama poured a combined 15,500 oz. of gold. Resolute expects production to improve to about 15,000 oz. in September, putting third-quarter output at roughly 31,000 oz.

“The issues are understood and corrective actions are under way across underground mining, open-pit mining and the sulphide processing circuit,” Eger said. “What is encouraging is that operational performance is increasing since July and we are starting to attain our operating budget despite the ongoing challenges in Mali.”

Resolute expects the recovery to continue during the fourth quarter, forecasting production of 45,000 to 50,000 oz.

Recovery push

The company is building an on-site emulsion plant to reduce exposure to explosives supply disruptions, with commissioning planned for November. It is also adding open-pit fleet capacity and working to improve equipment availability.

Additional equipment for the new mining contractor is scheduled to arrive during September and October. Eger said Resolute’s immediate priorities are stabilizing explosives supply and working with the contractor to increase fleet availability.

The recovery nevertheless depends partly on factors outside the company’s control. Resolute said stable operations require greater certainty over the movement and availability of mining consumables, equipment and contractor resources within Mali.

Management expects measures already implemented at Syama to support fourth-quarter production targets if those external constraints continue to ease.

“Syama remains an important asset within the company’s portfolio,” Resolute said. “Management is focused on strengthening operational performance through the successful execution of current improvement initiatives and establishing a stable platform for future growth.”