The Resolute Mining Limited (ASX:RSG) share price is the worst performer on the ASX 200 on Thursday following its Q3 update…
The post Why the Resolute Mining (ASX:RSG) share price is the worst performer on the ASX 200 today appeared first on Motley Fool Australia. –
In early trade the gold miner’s shares were down as much as 8.5% to 85.5 cents.
At the time of writing, the Resolute share price has recovered a touch but is still down 7% to 87 cents.
Why is the Resolute share price sinking lower?
Investors have been selling the company’s shares following the release of its third quarter update this morning.
According to the release, for the three months ended 30 September, Resolute achieved total gold production of 87,303 ounces. This was a 19% reduction compared to the June quarter and driven largely by industrial action at its Syama operation.
Another disappointment was its All-In Sustaining Cost (AISC), which came in at US$1,284 per ounce. This was up from US$1,033 per ounce in the previous quarter and lifted its year to date AISC to US$1,095 per ounce.
Nevertheless, thanks to the strong gold price, Resolute still has profitable operations.
The company revealed that it commanded a realised gold price of US$1,694 per ounce for the quarter. This compares to the average spot price of US$1,913 per ounce.
As a result, the company ended the period with cash and bullion of US$106.4 million, up from US$87.5 million three months earlier.
Looking ahead, management has warned that its production in FY 2020 is expected to be at the lower end of the guidance range of 400,000 ounces to 430,000 ounces.
Unfortunately, this is expected to lead to its costs hitting the higher end of its guidance range of US$980 per ounce to US$1,080 per ounce.
Management advised that this guidance reflects the negative impact of the industrial relations dispute in the September quarter and other uncertainties relating to the potential impacts of the coronavirus pandemic and ECOWAS sanctions.
Man who said buy Kogan shares at $3.63 says buy these 3 ASX stocks now
When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*
In this FREE STOCK REPORT, Scott just revealed what he believes are the 3 ASX stocks for the post COVID world that investors should buy right now while they still can. These stocks are trading at dirt-cheap prices and Scott thinks these could really go gangbusters as we move into ‘the new normal’.
*Returns as of 6/8/2020
- Resolute (ASX:RSG) share price drops lower despite positive update
- Are Resolute Mining (ASX: RSG) shares as good as gold?
- ASX 200 jumps 2.4% higher, numerous shares rise
Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.