2022
2022
ANNUAL REPORT
ANNUAL REPORT
11
RESOLUTE MINING LIMITED 2022 ANNUAL REPORTOverviewConsolidated income statement (continued)for the year ended 31 December 2021Financial Report CONTENTS
About Resolute
From the Chairman
Resolute’s Purpose and Values
From the CEO
Highlights
Board of Directors and Leadership Team
Sustainability at Resolute
Operations Review
Ore Reserves and Mineral Resources
Financial Review
Risk Management
Corporate Governance
Financial Report
Corporate Directory
SCOPE OF THIS REPORT
Resolute Mining Limited’s 2022 Annual Report presents
the Company’s operating and financial results for the
period from 1 January 2022 to 31 December 2022.
It has been prepared for stakeholders in line with
statutory and regulatory reporting obligations.
Resolute is a successful gold focused miner.
This report outlines Resolute’s operational and
financial performance and details the Company’s
efforts in 2022 to deliver long-term value to stakeholders
in a manner that reflects company values.
All references to Resolute, the Company, we, us and
our, refer to Resolute Mining Limited (ABN 097 088 689)
and its subsidiaries.
All dollar figures are in United States dollar currency,
unless otherwise stated.
All references to 2022 are for the 12-month period
from 1 January 2022 to 31 December 2022, unless
otherwise stated.
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About Resolute
RESOLUTE IS AN EXPERIENCED
EXPLORER, DEVELOPER AND
OPERATOR OF GOLD MINES.
Resolute currently owns two producing gold mines,
the Syama Gold Mine in Mali (Syama) and the Mako Gold Mine
in Senegal (Mako).
Mako is an open pit gold mine which Resolute has
owned and operated since August 2019, which is expected
to produce 117,000oz of gold in 2023.
The Company’s Global Mineral Resource of 11.2Moz is based
on the most recent Ore Reserve and Mineral Resource update
included in this report.
The Company is also active in exploration with drilling
campaigns underway across its African tenements with
a focus on Mali, Senegal and Guinea.
Syama is a robust, long-life asset which is expected to
produce 233,000oz of gold in 2023 from existing processing
and mining infrastructure.
The Company trades on the Australian Securities
Exchange (ASX) and the London Stock Exchange (LSE)
under the ticker RSG.
2O22 AT A GLANCE
Revenue
$651million
Operating Cash Flow(*)
$161million
Cash and Bullion(*)
$94million
(*)
These balances are non-IFRS information and have not been audited.
EBITDA(*)
$148million
Net Loss After Tax
$35million
Net Debt(*)
$32million
RESOLUTE MINING LIMITED 2022 ANNUAL REPORT
11
Overview RESOLUTE MINING LIMITED 2022 ANNUAL REPORT
From the Chairman
DELIVERING
SHAREHOLDER VALUE
“ The continued improvement in operational resilience
together with the resolve of our team has enabled us to
move forward into 2023 with a significantly enhanced
operational base, and a bolstered balance sheet to support
growth. Together with continued positive progress in
developing Syama North I believe Resolute is now in the
best position it has been for a number of years to deliver
consistent growth in shareholder value.”
The year marked another challenging
period for the Company amid the
backdrop of a volatile macroeconomic
environment and ongoing operational
turnaround at our flagship Syama project
in Mali. As 2022 progressed we generated
strong momentum, particularly in the
latter stages of the year, underpinned by
incremental production increases and
a strong focus on costs in the face of
significant inflationary pressures.
The continued improvement in
operational resilience together with
the resolve of our team has enabled
us to move forward into 2023 with a
significantly enhanced operational
base, and a bolstered balance sheet to
support growth. Together with continued
positive progress in developing Syama
North, I believe Resolute is now in the
best position it has been for a number
of years to deliver consistent growth in
shareholder value.
Terry Holohan leads a reinvigorated
management team after his appointment
as Managing Director and CEO in May
last year following the resignation of
Stuart Gale. Terry joined Resolute as
Chief Operating Officer in 2021 and
has been instrumental in resetting the
operations at Syama, evidenced through
Syama generating four consecutive
quarters of increased production
over 2022.
Geoff Montgomery was appointed
Chief Operating Officer in August
2022. Geoff has decades of leadership
experience across large scale mining
operations in Africa that is directly
applicable to Resolute, and has
developed a close working relationship
with the leadership teams on the ground
since joining Resolute.
The change of CEO was a smooth
process, and I would like to thank
Stuart for his valuable contribution to
the Company during his tenure.
In addition to enhancing the Syama
operations, Terry and his team undertook
a capital raise late in 2022 in order to
de-risk the Resolute balance sheet. The
equity raise was well supported and your
Company is now in a position to consider
further options to deliver growth. The
Syama North expansion project is also
shaping up well and presents high-
quality expansion potential for our
flagship project after the discovery of
significant mineral resources close to our
processing complex.
In 2022, Mako delivered another solid
year, with gold production increasing
to 129.4koz. The focus for 2023 is a
pit extension required to access the
final stage of the Mako main pit, which
will allow access to higher grades and
improved stripping ratios. This will result
in higher production, in 2024 and 2025,
along with expected lower costs.
In 2023, the prime focus for our executive
team will be to translate our stronger
operational platform into improved
financial performance, via a strong
focus on costs and vigorously pursuing
operational efficiencies to increase
production further.
Beyond the appointment of Terry as
Managing Director, the Board has
remained stable over the past year,
after significant change throughout 2021,
which has given us strategic certainty
and cohesion conducive to realising
long-term value.
Our commitment to delivering long-term
value is supported by our continued focus
on making sustainable business practices
a priority over the last five years.
MARTIN BOTHA, CHAIRMAN
It is pleasing to report strong progress
in this regard with year-on-year external
recognition of the improvements
achieved in ESG ratings, including a 2022
sector rating in the 83rd percentile by
S&P Dow Jones CSA and 82nd percentile
by Moody’s.
Resolute, as a full member of the
World Gold Council since 2019, has
also significantly aligned with their
‘Responsible Gold Mining Principles’ and
is on track for 100% compliance by mid-
2023 with 88% recorded in 2022.
The December 2022 quarter marked
another key milestone on the ESG
front with our total recordable injury
frequency rate standing at 0.41, a record
low, attributable to an ongoing focus on
training and safety. This is a terrific result,
but there are always improvements
to be made to ensure every one of
our people come home safely to their
loved ones. Our ESG credentials were
further validated in January this year
after receiving ISO 14001 and ISO 45001
accreditation, which is a globally relevant,
industry-wide certification status.
A more sustainable and safer Resolute
minimises business risks and makes us
a more attractive long-term investment
proposition. There will be more extensive
detail about our sustainability initiatives
in the upcoming 2022 Sustainability
Report, which I encourage you to read.
Lastly, on behalf of the Board I would like
to thank you, our shareholders, for your
loyalty and support during 2022. Our
Company is well positioned as we move
into 2023 and I look forward to updating
you on our progress during the year.
Martin Botha
Chairman
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RESOLUTE MINING LIMITED 2022 ANNUAL REPORT
Resolute’s Purpose and Values
OUR PURPOSE
We are a trusted and responsible
gold miner, driven by excellence to
create value for shareholders and the
communities in which we operate.
OUR VALUES
R
ESPE C T
A
C
C
UNT A B I LIT
O
Y
Respect
We respect each
other and the countries
and communities in
which we operate
Accountability
We own our actions
and deliver on our
commitments
I
NTEG R I
Y
T
Integrity
We are ethical,
open and honest
S
U
S
TAINA B I
Y
L IT
Sustainability
We prioritise health, safety
and environment, operating
responsibly to manage
risk and opportunity
Empowerment
We set ambitious goals,
foster high performance
and support our people
to generate new ideas
E
M
OWE R M E NT
P
RESOLUTE MINING LIMITED 2022 ANNUAL REPORT
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Overview RESOLUTE MINING LIMITED 2022 ANNUAL REPORT
From the CEO
STRONG SAFETY
PERFORMANCE
“ 2022 was a year of consolidation for Resolute,
encompassing a significant turnaround of our
operations and financial position. With momentum
building as the year progressed, and after delivering
a return to underlying profitability, 2023 is shaping
up to be a highly positive year for the Company.”
As always, safety is our number one
priority and to that end we were very
pleased to report a record low total
recordable injury frequency rate during
2022 – a year where we conducted a
64 thousand hour planned shutdown
of our sulphide plant at Syama. This
achievement by the whole Resolute
team was made all the more impressive
with COVID-19 continuing to persist
throughout the year and remaining as
another layer of complexity in keeping
our people safe.
We continued to progress the vaccination
programs we put in place in partnership
with the Governments’ of Mali and
Senegal to safeguard the well-being
of our employees and supporting the
communities in which we operate.
On an operational level, we continued
to focus on increasing productivity
and undertook a number of initiatives
over the year to elevate our operational
performance. To this end, we poured
353,069 ounces (oz) of gold in 2022, which
exceeded guidance of 345,000oz and
represented an 11% increase over 2021.
One of the key initiatives behind
this operational turnaround was the
successful completion of the Syama
Sulphide plant maintenance shutdown in
early 2022, which has resulted in a major
increase in throughput of this plant from
a nameplate capacity of 2.1 Mtpa to
2.4 Mtpa. Following the major shutdown,
availability, utilisation and throughput
have all significantly improved, with a 28%
increase in daily sulphide gold production
compared to 2021. The Syama Sulphide
operation achieved the highest annual
production result since open pit mining
operations ceased and underground
sub-level caving started in 2019.
Pleasingly in the second half of 2022 the
underground mine sustainably exceeded
the initial design parameters in terms of
tonnage and grade for the first time.
Importantly, beyond enhancing our
production capabilities this year, the
successful maintenance shutdown will
significantly increase the ability of the
plant to operate more efficiently for
many years to come.
Our turnaround at Syama underpinned
four consecutive quarters of increased
Group production during 2022.
The Mako operations continued to
perform at a consistently solid level
to support this, producing 129,425oz
across the year, and providing us with
substantial business stability.
The strong operational base we have built
in 2022 has helped us navigate a highly
volatile macroeconomic environment.
While the impacts of COVID-19 are
gradually ameliorating, 2022 brought
with it unprecedented inflationary
pressures that have been prevalent
across the industry globally. In this
regard, our All-in Sustaining Costs
(AISC) rose by 9% relative to 2021,
which was largely driven by higher fuel
and consumables costs.
In addition to these inflationary
pressures, the operational performance
of our flagship Syama project in Mali was
also impacted by the planned shutdown
of the Sulphide plant.
Despite these challenges, we generated
a 19% year-on-year rise in Group
Revenue to $651.1 million, and an
increase in earnings before interest, tax,
depreciation and amortisation (EBITDA)
to $148.2 million.
Whilst the Company reported a net loss
of $34.7 million, after adjusting for
significant items, the underlying net profit
after tax was $20.3 million.
Additionally on the financial side, our
well-supported A$164 million equity
raising in November 2022, coupled
with the successful sale of the Bibiani
Gold Mine, has de-risked our balance
sheet. Our net debt has significantly
reduced over the year from $228.8 million
to $31.6 million, now giving us the financial
flexibility to continue to execute on the
demonstrated operational turnaround.
The funding will also facilitate the Syama
North expansion plans for a new open
pit development of the Syama North
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RESOLUTE MINING LIMITED 2022 ANNUAL REPORT
TERRY HOLOHAN, CEO
resource. This is expected to provide ore
feed for a low capex expansion of the
Sulphide circuit, enabling us to deliver
economies of scale and further reduce
our AISC per ounce.
Resolute recently announced a 58%
increase in Mineral Resources at Syama
North to over three million ounces, which
equates to gold being discovered in a
very cost-efficient manner, at lower than
$10 per ounce.
The Syama North pre-feasibility study is
expected to be completed in the second
half of 2023, ahead of the planned
commencement of a definitive feasibility
study. We are also ramping up exploration
at our Mako operation in Senegal,
assessing several promising targets
adjacent to the existing mine, as we
aim to extend the life of this well-
performing operation.
Accordingly, we have excellent organic
growth opportunities across our portfolio
from the near-term to long-term.
Entering 2023, I echo the sentiments
Martin expressed in his Chair Address
that the Company is very well positioned.
Resolute now has a healthy balance
sheet, we are demonstrating operational
consistency, and the Company has
methodically developed a clear pathway
to generate sustainable and cost-efficient
growth over the next few decades.
Building on this positive trajectory in
the year ahead will enable us to deliver
sustainable value for all our stakeholders.
Finally, I’d like to thank our employees
for their various initiatives and tireless
efforts during this momentous turnaround
year, and also extend my thanks to all our
shareholders and stakeholders for your
ongoing support.
Terry Holohan
Managing Director and
Chief Executive Officer
2022
HIGHLIGHTS
For the year ending 31 December 2022
GOLD PRODUCTION
353,069oz
ALL-IN SUSTAINING COST
$1,498/oz
TOTAL GOLD SOLD
357,447oz
AVERAGE PRICE ACHIEVED
$1,819/oz
RESOLUTE MINING LIMITED 2022 ANNUAL REPORT
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Overview RESOLUTE MINING LIMITED 2022 ANNUAL REPORT
Board of Directors and Leadership Team
THE BOARD
Terry Holohan
BSc CEng MIMMM
Managing Director
and Chief Executive Officer
Martin Botha
BScEng
Non-Executive Chairman
Mark Potts
BSc (Hons), GAICD
Non-Executive Director
Sabina Shugg
BSc (Mining Engineering), MBA, GAICD
Non-Executive Director
Adrian Reynolds
MSc, GradDipMinEng
Non-Executive Director
Simon Jackson
B.Com FCA
Non-Executive Director
LEADERSHIP TEAM
Geoff Montgomery
BSc Chem Eng (Hons) MIMM
Chief Operating Officer
Doug Warden
BCom, CA and MBA (Exec)
Chief Financial Officer
Richard Steenhof
LLB (Dist.)
General Counsel and Company Secretary
Bruce Mowat
BSc (Geology)
Executive General Manager – Exploration
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RESOLUTE MINING LIMITED 2022 ANNUAL REPORT
RESOLUTE MINING LIMITED 2022 ANNUAL REPORT Board of Directors and Leadership Team
Martin Botha
BScEng
Non-Executive Chairman
Mark Potts
BSc (Hons), MAICD
Non-Executive Director
Mr Martin Botha was appointed
Chairman in June 2017 after being
appointed to the Board in February 2014.
Mr Botha is Chair of the Nomination
Committee and a member of the
Audit and Risk Committee and the
Remuneration Committee.
Mr Mark Potts was appointed to the
Board as a Non-Executive Director
in June 2017. Mr Potts is Chair of the
Remuneration Committee (from
20 February 2020), and a member of
the Audit and Risk Committee and the
Nomination Committee.
Skills, experience and expertise
Mr Botha is an investment banker with
extensive experience as a non- executive
director in the metals and mining industry
and regulated financial markets.
Mr Botha led the establishment and
development of Standard Bank’s core
global natural resources trading and
financing franchise across all continents
as a founding director in their London
centred international operations. He
brings this insight and experience of
global commodity markets as well as
mining financing and M&A transactions
to the Board.
Mr Botha is active in assisting early-stage
mining opportunities in Africa and has
a broad strategic understanding of the
resources industry and its cyclical nature.
He brings deep experience in governance
through his board level roles in highly
regulated institutions in several global
financial centres.
Mr Botha currently chairs a private
company building digital marketplaces.
Mr Botha graduated with first class
honours from the University of Cape
Town and is based in London.
Current listed directorships
•
Non-Executive Director of Zeta
Resources Limited
(appointed 2013)
Other current directorships/
appointments
• Non-Executive Chair of NovaFori
(formerly Perfect Channel Ltd)
(appointed 2017)
Skills, experience and expertise
Mr Potts is a leading global technology
and business executive. He has founded
multiple venture backed technology
and technology services companies
in Australia, the UK and the US. Most
recently, Mr Potts was a HP Fellow and
Chief Technology Officer/Vice President
of Corporate Strategy at Hewlett-Packard
Enterprise in the US, leading their efforts
in both M&A, technology investment and
capital strategy.
Mr Potts is and has been a non-executive
director and chairman at several
ASX-listed technology companies that
are involved in disruption within both
financial services/superannuation,
security/surveillance automation and
government service digitisation. He
has deep expertise in technology led
innovation leveraging Robotic Process
Automation, AI/machine learning, and
Blockchain technology, as well as public
policy change and privatisation of
government soft assets into public and
private partnership.
Mr Potts is a Member of the Australian
Institute of Company Directors.
Current listed directorships
• None
Other current directorships/
appointments
• Non-Executive Director of Linear
Clinical Research Limited
(appointed 2019)
• Non-Executive Director of Land
Services WA
(appointed 2019)
THE BOARD
Terry Holohan
BSc CEng MIMMM
Managing Director
and Chief Executive Officer
Mr Terry Holohan was appointed as
Managing Director and Chief Executive
Officer in May 2022 after serving as the
Chief Operating Officer since May 2021.
Mr Holohan is Chair of the Sustainability
Committee.
Skills, experience and expertise
Mr Holohan is a mining sector executive
with more than 43 years of experience,
including 7 years as chief executive of
two previous mining companies, 33 years
working in Africa on a range of precious
and base metals mining projects, and 10
years working on gold projects in Asia.
He has held various executive positions
over the last 23 years with a focus on re-
engineering a range of ‘stressed’ precious
and base metals mining projects.
As an engineer, Mr Holohan was
involved in the design, commissioning
and operation of numerous complex
metallurgical capital projects in the
platinum, nickel, copper, gold, chrome
and diamond industries. He was also
involved in detailed mine design
programs and engineering studies for
several open cut and underground
mining development operations.
Prior to joining Resolute, Mr Holohan
was chief executive officer of PT Archi
Indonesia for five years where he
successfully developed and expanded
a multi-open pit gold mine from an
exploration project to an operational mine
paying dividends.
Mr Holohan brings significant experience
in operating in technically and socially
challenged environments where he has
led multi-cultural workforces.
He is a Chartered Engineer though the
Engineering Council (UK) and a Member
of the IOM3. He is also a Member of the
IOD (UK).
Current listed directorships
• None
Other current directorships/
appointments
• None
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RESOLUTE MINING LIMITED 2022 ANNUAL REPORT
Board of Directors and Leadership Team
THE BOARD
Sabina Shugg
BSc (Mining Engineering), MBA, GAICD
Non-Executive Director
Adrian Reynolds
MSc, GradDipMinEng
Non-Executive Director
Simon Jackson
B.Com FCA
Non-Executive Director
Mr Simon Jackson was appointed to the
Board as a Non-Executive Director in
October 2021. Mr Jackson is Chair of the
Audit and Risk Committee, and a member
of the Nomination Committee and the
Remuneration Committee.
Skills, experience and expertise
Mr. Jackson is a Chartered Accountant
with over 25 years’ experience in
management of resource companies,
particularly in Africa. Mr. Jackson was a
key member of the management team
of TSX listed Red Back Mining Inc., a
company that financed, developed and
operated two gold mines in West Africa
culminating in a takeover by Kinross
Gold Corp in 2010. He was then founding
President and CEO, and later Chairman,
of TSXV listed Orca Gold Inc, a company
which discovered the Block 14 gold
project in Sudan, before it was taken over
by Perseus Mining Limited in 2022.
Mr. Jackson has previously been a
director of multiple ASX and TSX listed
companies including Cardinal Resources
Limited.
Current listed directorships
•
Non-Executive Chairman of Sarama
Resources Limited
(appointed March 2011)
• Non-Executive Chairman of Predictive
Discovery Limited
(appointed October 2021)
Other current directorships/
appointments
• None
Ms Sabina Shugg was appointed to
the Board as a Non-Executive Director
in September 2018. Ms Shugg is a
member of the Remuneration Committee,
the Sustainability Committee, the
Audit and Risk Committee and the
Nomination Committee.
Mr Adrian Reynolds was appointed
to the Board as a Non-Executive Director
in May 2021. Mr Reynolds is a member
of the Nomination Committee, the
Audit and Risk Committee, the
Sustainability Committee and the
Remuneration Committee.
Skills, experience and expertise
Mr. Reynolds has more than 40 years
of experience in senior management and
advisory roles in the natural resources
sector, including almost 25 years of
experience with Randgold Resources
and its predecessors.
His particular areas of expertise include
feasibility studies, project evaluation,
technical due-diligence, ore resource/
reserve estimation and environmental
studies.
Mr. Reynolds is a Fellow of the Institute
of Materials, Minerals and Mining and is
also a Fellow of the Geological Society
of South Africa. He is a registered
Professional Natural Scientist and
holds a Master of Science in Geology
obtained from Rhodes University in
1979, as well as a Graduate Diploma in
Engineering obtained from the University
of Witwatersrand in 1987.
Current listed directorships
• Non-Executive Director of Sylvania
Platinum Ltd
(appointed 2021)
Other current directorships/
appointments
• None
Skills, experience and expertise
Ms Shugg is a mining engineer with over
30 years’ experience involving senior
operational roles with leading mining
and consulting organisations including
Normandy, Newcrest, and KPMG.
Ms Shugg has extensive experience in
senior roles with mining and consulting
organisations including operations
management experience at senior site
level covering both underground and
open pit environments. Ms Shugg’s work
has a strong people focus, together with
a solid project management background.
Ms Shugg currently serves as the Director
of the Kalgoorlie Campus for Curtin
University – WA School of Mines with a
focus on industry engagement and taking
mining education into a digital future.
In her role as Founder and Chair of
Women in Mining and Resources WA
(WIMWA), Ms Shugg was awarded the
inaugural Women in Resources Champion
by the Chamber of Minerals and Energy
of Western Australia for being an
outstanding role model for the resources
industry and broader community. In 2015,
Ms Shugg was awarded a Member of the
General Division of the Order of Australia
for significant service to the mining
industry through executive roles in the
resources sector and as a role model and
mentor to women.
Ms Shugg is a Member of the Australian
Institute of Company Directors.
Current listed directorships
• None
Other current directorships/
appointments
• Director of WIMWA Events Pty Ltd
(appointed 2007)
• Non-Executive Director of the
Australian Prospectors and Miners’
Hall of Fame Ltd (appointed 2014)
• Non-Executive Director of the
Mining Hall of Fame Pty Ltd
(appointed 2016)
• Director of the Kalgoorlie Campus for
Curtin University – WA School of Mines
(appointed July 2019)
• Chair of the Goldfields Esperance
Development Commission
(appointed September 2020)
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RESOLUTE MINING LIMITED 2022 ANNUAL REPORT Board of Directors and Leadership Team
RESOLUTE MINING LIMITED 2022 ANNUAL REPORT
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RESOLUTE MINING LIMITED 2022 ANNUAL REPORT
Board of Directors and Leadership Team
LEADERSHIP TEAM
Geoff Montgomery
BSc Chem Eng (Hons) MIMM
Chief Operating Officer
Doug Warden
BCom, CA and MBA (Exec)
Chief Financial Officer
Mr Geoff Montgomery joined Resolute
in 2021 as General Manager Technical
Services and was appointed as Chief
Operating Officer in August 2022 after
acting in the role since April 2022.
Mr Montgomery has 38 years’ experience
in operations management, engineering
design, projects, and corporate
management in the hard-rock mining
and engineering support services.
An experienced mining professional,
Geoff has worked extensively in Africa
and South East Asia. He has held a
number of roles including General
Manager of a gold mine, Technical
Director for a copper and cobalt
producing company and Business
Development Manager of an
engineering company.
Richard Steenhof
LLB (Dist.)
General Counsel and Company Secretary
Mr Richard Steenhof is a corporate
lawyer who joined Resolute in 2019 and
in 2021 was appointed as the Company’s
General Counsel and Company Secretary.
Prior to joining Resolute, Mr Steenhof
practiced for 11 years at leading
international law firms in the general
energy and natural resources space.
He has extensive experience in a wide
range of matters in the sector including
M&A, projects, finance, corporate
governance and strategic advice.
Mr Doug Warden was appointed as
Chief Financial Officer in September
2021 bringing with him over 25 years’
experience leading the financial, strategic
and commercial functions for mining and
agricultural businesses.
Prior to Resolute, Doug was the CFO at
CBH Group. Prior to CBH, Doug spent
15 years in the mining industry, primarily
with ASX-listed Iluka Resources. While
at Iluka, Doug held a number of senior
executive positions including CFO, Head
of Resource Development and General
Manager Business Development. In
addition to his key financial, planning and
investor responsibilities, Doug has also
had broad experience in international
operations in Sierra Leone, Sri Lanka and
the United States.
Bruce Mowat
BSc (Geology)
Executive General Manager
– Exploration
Mr Bruce Mowat joined Resolute in
2011 and is currently Executive General
Manager Exploration, responsible for the
Company’s exploration and development
programs in Australia, Africa and other
jurisdictions.
Mr Mowat has spent 30 years exploring
for and finding gold and base metal
deposits in Australia, PNG, Indonesia and
West Africa and has held senior positions
in a number of companies.
Prior to joining Resolute Mr Mowat was
Chief Geologist for Straits Resources.
Mr Mowat is currently a non-executive
director of ASX-listed Turaco Gold
Limited.
10
RESOLUTE MINING LIMITED 2022 ANNUAL REPORT
SUSTAINABILITY
AT RESOLUTE
11
Sustainability Report RESOLUTE MINING LIMITED 2022 ANNUAL REPORT SUSTAINABILITY
AT RESOLUTE
As a member of the World Gold Council (WGC),
Resolute is committed to operating responsibly
in accordance with the Responsible Gold Mining
Principles (RGMPs) from mine development
through to closure.
In 2022, Resolute continued to refine its sustainability
frameworks, systems, protocols, and management standards
in line with these and other leading practice guidance. A key
achievement was obtaining the group-certification for
ISO 14001 and 45001.
Resolute is pleased to report it has further aligned
(88%, up 23% on 2021) with the World Gold Council’s (WGC)
Responsible Gold Mining Principles (RGMPs) following a
two-year external assurance process and is on track towards
our goal of achieving 100% alignment, according to the
Company’s mid-2023 deadline. Kumi Consulting (London) were
engaged this year to provide external assurance of Resolute’s
compliance against the RGMPs and the Conflict Free Gold
Standard for final assurance in the second half of 2023.
Resolute’s Sustainability Strategy continues to evolve as the
Company’s understanding of ESG risk and opportunity at our
assets matures.
Resolute’s Sustainability Strategy is illustrated below. It contains
four key strategic pillars. Priorities and targets continue to be
identified under each of these and Resolute will continue to
monitor and report performance in accordance with:
• The Global Reporting Initiative
• Sustainable Development Goals
• IFC performance standards
• The UN Guiding Principles on Human Rights
• Other ESG guidance relevant to the resources sector.
Resolute welcomes the recommendations of the Task Force on
Climate-related Financial Disclosures (TCFD) and is currently
undergoing an assessment of climate change transitional and
physical group-level risks and opportunities. Resolute will
publish a TCFD-aligning report in the second half of 2023.
The Company is pleased to report continued strong performance
in ESG ratings with our 2022 sector ratings by S&P Dow Jones
CSA and Moody’s, in the 83rd and 82nd percentiles respectively.
Resolute will soon publish its third Group Sustainability Report
for 2022, to voluntarily disclose its key activities, programs, and
achievements. Resolute’s 2022 Sustainability Report will be
available to download on the Company’s website at rml.com.au.
OSE: O p era t e r e
Transp are n t
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12
Sustainability ReportRESOLUTE MINING LIMITED 2022 ANNUAL REPORT
OPERATIONS
REVIEW
Resolute Mining Limited 2021 Annual Report
1313
Operations Review RESOLUTE MINING LIMITED 2022 ANNUAL REPORT
OVERVIEW
Resolute is an African-focused gold miner with
more than 30 years’ experience, currently focused on
optimising the performance of its two producing
gold mines: the Syama Mine in Mali (Syama) and
the Mako Mine in Senegal (Mako).
During 2022, Resolute was focused on continuing to optimise
the performance of its gold mines, implementing successful
productivity enhancements whilst targeting cost efficiencies
amid industry-wide cost inflation.
Resolute grew production quarter-on-quarter throughout 2022.
This included the Sulphide operations generating its highest
annual production result since Syama open pit mining ceased
in 2015.
In 2022, Resolute increased gold poured by 11% to 353,069oz
at an AISC of $1,498/oz, compared to 319,271oz at an AISC of
$1,370/oz in the prior year.
This performance was achieved while the Company faced
ongoing cost pressures associated with an inflationary
environment.
Syama and Mako mined a record 6.8 million tonnes (Mt) of ore
with the processing plants milling 5.7Mt of ore at a grade of
2.11 grams per tonne of gold (g/t).
The 2022 result was impacted by the planned major
maintenance shutdown at Syama early in the year, which
has significantly enhanced the operation and will benefit
Syama going forward.
The Company’s mine in Mali provides a strong platform for
organic growth. This is underpinned by the Syama North project
where, post year end, the Mineral Resource Estimate increased by
58% to over three million ounces of gold. A pre-feasibility study is
under way on low capital options for the expansion of the Syama
sulphide operations providing a strong growth opportunity for
the Company.
OUR OPERATIONS
UNITED KINGDOM
London
SENEGAL
Mako Gold Mine
AFRICA
MALI
Syama Gold Mine
AUSTRALIA
Perth
14
Operations ReviewRESOLUTE MINING LIMITED 2022 ANNUAL REPORT
Mine Operations Review
for the year ended 31 December 2022
Measure
/Units
Syama
Sulphide
Syama
Oxide
Syama
Total
Mako
Total
Total Ore Mined
Total Ore Processed
Grade Processed
Recovery
Gold Recovered
Gold in Circuit Additions/(Drawdown)
Gold Poured
AISC
Tonnes
Tonnes
g/t
%
oz
oz
oz
$/oz
2,294,680
1,694,521
3,989,201
2,857,169
6,846,370
2,100,958
1,579,754
3,680,712
2,050,080
5,730,792
2.68
78.2
141,522
19,957
161,479
1,410
1.35
88.6
60,700
1,465
62,165
1,801
2.11
82.6
202,222
21,422
223,644
1,519
2.11
92.8
129,095
330
129,425
1,318
2.11
86.3
331,317
21,752
353,069
1,498
In Mali, the Syama sulphide circuit delivered gold production of 161.5koz at an AISC of $1,410/oz, a 19% increase in production.
This increased production more than offset higher total cash costs resulting from inflationary pressures, with cash costs per ounce
reducing by 9% to $1,355. A significant increase in gold recovered from circuit, resulted in higher inventory charges, which led to
a marginal increase in AISC to $1,410/oz.
Ore mined increased from 2.2Mt to 2.3Mt, while the roaster recorded its highest ever throughput, processing 175.2kt. This was
achieved, despite a planned shut down to replace the roaster refractory and undertake major maintenance on the entire sulphide
circuit. The Syama sulphide operation is expected to continue to benefit from the successful planned maintenance shutdown
completed early in 2022.
The oxide operations continued mining of several lower grade satellite pits for treatment at Syama’s separate oxide processing facility.
Overall production for the year increased 9%, with momentum picking up in the second half, with the December quarter delivering
the highest production for the year.
In Senegal, the Mako mine delivered another solid year, with gold production increasing 2% to 129.4koz at an AISC of $1,318. Despite
the marginally higher production, inflationary pressures, tailings dam and sustaining capital resulted in a 16% increase in the AISC
compared to the prior year.
Group AISC at $1,498/oz, was up 9% on the prior year, due largely to the impact of inflationary pressures which have been felt across
the entire industry, especially in respect of fuel and consumables. The Company has retained a focus on prudent cost control and
operational efficiencies to mitigate these inflationary pressures.
In both operations, the COVID-19 pandemic continued to be monitored closely and successfully managed to ensure operations were
not materially impacted.
2023 Outlook
Resolute forecasts gold production for 2023 to be 350koz at an AISC of $1,480/oz from the Syama and Mako operations.
Total sustaining capital included in AISC is forecast to be $34 million. This includes $9 million of stripping costs at Syama and
other sustaining capital projects, including $9 million of underground fleet equipment replacement at Syama and $3 million tailings
management at Mako.
In addition, non-sustaining capital expenditure is forecast to be $54 million. This includes $25 million of Mako stripping costs,
classified as non-sustaining due to the pit extension required to access the final stage of the Mako main pit. This pit extension
will allow access to higher grade ore and lower stripping ratios, enabling higher production, in 2024 and 2025, along with
expected lower costs.
Other non-sustaining capital includes $8 million for the acquisition of the power plant at Mako, $4 million for various projects to
increase throughput capacity at the Syama sulphide circuit and $4 million towards expansion studies at Syama.
2023 Guidance
Syama Sulphide
Syama Oxide
Mako
Total
Production (oz)
AISC ($/oz)
160,000
73,000
117,000
350,000
1,400
1,365
1,470
1,480
15
Operations Review RESOLUTE MINING LIMITED 2022 ANNUAL REPORT
Operations Review
Operations Review
SYAMA
GOLD MINE
Syama is located in the southwest of Mali,
approximately 30km from the Côte d’Ivoire border
and 300km southeast of the capital Bamako.
Mali
AFRICA
Bamako Syama
Gold Mine
Syama Gold Mine is a large-scale operation, comprising the established Syama Underground Mine, the Tabakoroni Complex
and the recently discovered Syama North 3Moz Resource along with several satellite oxide pits. Syama is owned by local
subsidiary Société des Mines de Syama S.A. (SOMISY) in which Resolute has an 80% interest and the Government
of Mali holds the remaining 20%.
The Tabakoroni complex is 90% owned by Société des Mines de Finkolo S.A. (SOMIFI), and the Government of Mali holds
the remaining 10%.
2022 AT A GLANCE
MINING
4.0Mt of ore
SALES
227,817oz
PRODUCTION
AISC
223,644oz
$1,519/oz
GROWTH POTENTIAL
• Recent major upgrade of
Syama North mineral resource
• PFS to evaluate low capex
expansion options for Syama
sulphide
• Progress work on the extension
of mining projects at Tabakoroni
PROCESSING
3.7Mt at 2.11g/t and
82.6% recovery
RESOURCES
10.5Moz at 2.6g/t
RESERVES
4.1Moz at 2.6g/t
16
16
RESOLUTE MINING LIMITED 2022 ANNUAL REPORT
RESOLUTE MINING LIMITED 2022 ANNUAL REPORT Syama Oxide Operations
Gold production from the Syama oxide operations for
2022 was up 9% to 62.2koz, however AISC costs were
up 20% on the prior year to $1,801/oz due to inflationary
pressures, higher sustaining capex and higher non-cash
inventory charges.
The operations however capitalised on extensive grade control
drilling in the first half of 2022, with significant improvements
in both grade and gold poured in the second half.
Grade control drilling at year end was over six months
ahead of the mining plan and has provided increased
confidence in the mined grade for 2023.
In light of the inflationary pressures experienced in 2022,
together with an expectation of an expanded Sulphide
circuit fed by Syama North, the Company has re-optimised
the remaining Syama Oxide Ore Reserves.
Syama Sulphide Operations
Gold production from the Syama sulphide operations for 2022
was up 19% to 161.5koz at a steady AISC of $1,410/oz, compared
to $1,406/oz in 2021.
A record 2.3Mt of ore was mined, with the year seeing continued
improvement in cave flow management and a steady increase in
mined grade. This culminated in a strong finish to the year where
both tonnes and grade mined in the December quarter were
the highest achieved during 2022, as well as, being above the
initial mine designs. As a result of the significant improvements
in evaluation modelling and productivity of the sub-level cave,
an additional 126koz of Mineral Resources was converted to Ore
Reserve at the end of 2022.
Resolute made key improvements to the sulphide processing
circuit, principally via a planned maintenance shutdown
undertaken early in the March quarter.
Following the successful shutdown, the Syama sulphide
processing plant has achieved improved consistency,
throughput rates and increased Roaster capacity, with record
roaster throughput achieved during 2022.
Capitalising on the enhancements and productivity initiatives
during the year, the sulphide operations delivered gold
production for 2022 at the highest level since the main open
pit ceased operations in 2015.
2022
2022
Syama Sulphide Production and Cost Summary
Syama Oxide Production and Cost Summary
Ore Mined
(t)
Ore Milled
(t)
Head Grade
(g/t)
Ore Mined
(t)
Ore Milled
(t)
Head Grade
(g/t)
2,294,680
2,100,958
2.68
1,694,521
1,579,754
1.35
Recovery
(%)
Production
(oz)
78.2
161,479
AISC
($/oz)
1,410
Recovery
(%)
Production
(oz)
AISC
($/oz)
88.6
62,165
1,801
Syama North Project
The Company had significant exploration success at Syama
North during the year. This was evidenced by a 58% increase
in the Syama North resource, to over 3 million ounces (Moz)
of gold, which was released subsequent to year end.
The Syama North Mineral Resource now totals 34 million tonnes
at 2.9g/t for 3.2Moz of gold, with the majority of the resource
within 150m of the surface, highlighting the open pit potential of
the deposit.
Given the strong performance of the Sulphide processing circuit
post the planned major shutdown in Q1 2022, the Company
is confident in its ability to process sulphides. Assuming
significant amounts of the Resource convert to Ore Reserves,
Syama North is expected to provide flexibility to enable the
expansion of the Sulphide circuit.
As a result, the Company is currently working through a PFS,
underwritten by the March 2023 Syama North Ore Reserve of
approximately 854 koz, focusing on low capital expansion options
to further expand the Sulphide operations, with the results expected
in the second half of 2023.
Tabakoroni Sulphide Project
At Tabakoroni, the measured and indicated Mineral
Resource Estimate is 8.2Mt at 4.0g/t, at a 1.75g/t cut off for
a total of 1.0Moz.
Following an updated LOM plan in March 2022, the Company
has deferred the development of the Tabakoroni Sulphide Project
(Tabakoroni), which is located ~35km south of the Syama
processing plant.
The March 2022 LOM Plan assumed first production from
Tabakoroni in 2026, at an estimated capital cost of $80-100
million. The Syama North open pit option has been prioritised
due to it being lower capital, its proximity to the processing
facilities and strong metallurgical similarities to the existing
Syama Underground mill feed.
1717
RESERVES
Operations Review RESOLUTE MINING LIMITED 2022 ANNUAL REPORT
Operations Review
Operations Review
MAKO
GOLD MINE
Dakar
Senegal
AFRICA
The Mako Gold Mine, located in eastern Senegal, is a high
quality, open pit mine with attractive scale and potential life
extension through several near-mine exploration opportunities.
Mako
Gold Mine
Mako is owned and operated by Resolute’s Senegalese subsidiary, Petowal Mining Company S.A. (Petowal). Resolute has a
90% interest in Petowal and the Government of Senegal holds the remaining 10%. Mako is a conventional drill and blast, truck and
shovel operation with mining services undertaken by an established contractor. The carbon in leach processing plant has 2.1 Mtpa
of installed capacity and comprises a crushing circuit, an 8MW SAG Mill and gold extraction circuit. Mako continues to deliver
consistently strong results and cash flows. Consistent ore grades and metallurgical characteristics support reliable production rates.
Identified exploration targets have the potential to increase mine life and exploration programmes are in progress, focusing on pit
extensions and satellite deposits within trucking distance of the mill.
2022 AT A GLANCE
MINING
2.9Mt of ore
SALES
129,630oz
GROWTH POTENTIAL
• Potential for further discovery
and additional mine life
extensions.
PRODUCTION
AISC
129,425oz
$1,318/oz
PROCESSING
2.1Mt at 2.11g/t and
92.8% recovery
RESOURCES
683koz at 1.5g/t
RESERVES
520koz at 1.7g/t
18
1818
RESOLUTE MINING LIMITED 2022 ANNUAL REPORT
Operations ReviewRESOLUTE MINING LIMITED 2022 ANNUAL REPORT RESERVES
Mako Operations Overview
In 2022, Mako poured 129.4koz of gold at an AISC of $1,318/oz,
compared to 126.6koz of gold at an AISC of $1,139/oz in the year
prior. AISC costs were up 20% on the prior year to $1,318/oz due
to inflationary pressures, higher sustaining capex and higher
non-cash inventory charges.
Ore mined at Mako increased quarter-on-quarter, with improved
mining performance due to favourable conditions in the pit, as
the cutback widened, and broader operational improvements on
site. Mine grade lowered later in the year, which was in line with
mine plan expectations.
Tonnes processed steadily increased over the year, following the
installation of a milling software program, increased plant uptime
and a reduction in the number of relines from 4 to 3 per year.
These factors enabled an increase in throughput rates as the
year progressed.
Notwithstanding lower processed grades in the second half,
reflective of the lower mine grade, Mako continued to generate
reliable throughput tonnage increases, with production up 2%
for the full year.
2022
Mako Production and Cost Summary
Ore Mined
(t)
Ore Milled
(t)
Head Grade
(g/t)
2,857,169
2,050,080
2.11
Recovery
(%)
Production
(oz)
AISC
($/oz)
92.8
129,425
1,318
191919
Operations Review RESOLUTE MINING LIMITED 2022 ANNUAL REPORT
Operations Review
CORPORATE ACTIVITIES
Sale of Bibiani Gold Mine
In August 2021 Resolute announced the
sale of the Bibiani Gold Mine (Bibiani) to
Asante Gold Corporation (Asante) for a
total cash consideration of $90 million,
with $30 million received up front and
$60 million to be paid via two further
$30 million instalments during 2022.
Resolute received the first instalment
of $30 million in the first quarter of 2022,
and the final $30 million was received
over three deferred payments of $10
million in the second half of the year.
Under the agreement with Asante, an
additional $2.7 million in respect of an
environmental bond plus interest on
deferred consideration was also due on
18 November 2022. Asante failed to make
this payment and consequently Resolute
has commenced legal proceedings to
recover this amount.
Listed investments
Resolute disposed of a number of listed
investments during the year, consistent
with the Company’s strategic focus on its
core operating assets and strengthening
the balance sheet.
On 31 January 2022 Resolute announced
it had agreed to sell its shares in Orca
Gold Inc to Perseus Mining Limited for a
total consideration of ~$13.7 million.
Further asset sale proceeds of $4.5
million were received from the divestment
of Resolute’s shareholding in Turaco Gold
Limited in the June quarter.
In the September quarter, the Company
received $1.8 million in cash as part of
B2Gold Corporation’s acquisition of Oklo
Resources Limited. In addition, Resolute
received 1.2 million B2Gold shares, which
were subsequently sold for $3.6 million
during the December quarter.
Equity Raising
On 10 November 2022, Resolute
launched an Institutional Placement
(Placement) and 1-for-1.11 accelerated
Non-renounceable Entitlement Offer
(Entitlement Offer) to strengthen its
balance sheet and provide a financial
platform for growth, including support
for the Company’s Syama North
expansion plans.
The equity raise was originally
underwritten for A$140 million, with
the underwritten component increased
to A$164 million following strong
institutional investor demand.
Further details are summarised below.
Amount Raised Under the Placement and Entitlement Offer
Institutional Offer
Placement
Institutional Entitlement Offer
Total Institutional Offer
Retail Entitlement Offer
Retail Entitlement Offer Take-Up
Allotted to Sub-underwriters
Total Entitlement Offer
Total Equity Raising
Shares
Amount
(A$ million)
258
342
600
289
136
425
1,025
41
55
96
46
22
68
164
Extension of Revolving Credit Facility
On 10 March 2022 Resolute announced that it had agreed commercial terms with its financiers to extend its Revolving Credit facility
(RCF) for an additional 12 months to March 2024, with an amended repayment schedule.
There were no changes to the $150 million Term Loan Facility, with amortisation remaining in line with the previous biannual
repayment schedule (each March and September) and maturity also in March 2024.
Following the Company’s successful equity raising completed late in 2022, proceeds raised were applied to the reduction of debt.
As at 31 December 2022, the RCF was drawn to $5 million (with $95 million undrawn) and the Term Loan was drawn to $75 million .
20
RESOLUTE MINING LIMITED 2022 ANNUAL REPORT Operations Review
EXPLORATION
Exploration to expand oxide and sulphide resources and extend mine life at
Syama is a key priority for Resolute. The Company holds 85km of contiguous
tenements along the highly perspective Syama Greenstone Belt and is
continuing to explore for new oxide positions as well as high grade sulphide
zones to complement the Ore Reserves at the Syama Underground Mine.
The 2022 exploration program at Syama was busy with extensive drilling programs. At Syama North an intensive drilling program was
undertaken to increase the Mineral Resources with 181 RC and diamond holes completed for 32,192m. In the search for additional
oxide resources, 206 RC holes were drilled for 19,000m over identified gold targets. In addition regional aircore drilling was completed
over the entire permit portfolio with 45,000m drilled from 705 holes.
Syama North
Exploration success at Syama North in 2021 led to an accelerated exploration program in 2022.
Diamond and RC drilling recommenced in early 2022 at both the A21 and Beta pits. The drilling program targeted the down-dip
extensions of the identified zones and was successful, with the majority of the holes intersecting gold bearing sulphide mineralisation.
Analytical results were returned with significant intersections seen in numerous holes confirming the extension of the mineralised
zones along the entire strike length of the original A21 pit. These results were reported on 16 June 2022.
Since the June announcement, drilling continued and results were consistently positive with ore grade intervals seen in most holes.
A Mineral Resource Estimate was undertaken in July and reported on 31 August 2022 with a Global estimate of 20 million tonnes
at 3.1g/t Au for 2.0 million ounces at a cut-off grade of 1g/t Au. This represented a 40% increase in total resource ounces from the
previous estimate quoted in the 31 December Reserve and Resource Statement.
Since the August announcement, drilling focussed on improving the confidence and classification of the Mineral Resource. The
majority of the drilling in the second half of 2022 was infill drilling to achieve a nominal 50 x 50m pattern required for Indicated
classification. There was also extensional drilling completed in areas of wide zones of mineralisation.
The Syama Mineral Resource Estimation was updated in December 2022 using wireframe constrained Ordinary Kriged (OK)
estimation methodology, with identical parameters to the previous estimate published in August 2022.
The Global Mineral Resources at Syama North is now estimated at 34 million tonnes at 2.9g/t Au for 3.18 million ounces
at a cut-off grade of 1g/t Au. Resource classification and material types are shown below in Tables 1 and 2.
The Mineral Resource has increased by 58% over the 2021 = estimate driven entirely by an increase in volume of gold mineralisation.
Syama North Satellite Deposits Mineral Resource (>1g/t)
Oxidation
Oxide
Transitional
Sub-Total
Primary (sulphide)
Total
Tonnes
2,724,000
1,470,000
4,194,000
29,843,000
34,038,000
Grade
2.7
2.9
2.8
2.9
2.9
Table 1: Syama North Mineral Resources at 31 December 2022 (1g/t cut off)
Syama North Satellite Deposits Mineral Resource (>1g/t)
Category
Measured
Indicated
M and I Sub-Total
Inferred
Total
Tonnes
717,000
18,457,000
19,174,000
14,863,000
34,038,000
Grade
3.5
3.0
3.0
2.8
2.9
Table 2: Syama North Mineral Resources at 31 December 2022 (1g/t cut off)
Ounces
236,000
137,000
373,000
2,802,000
3,175,000
Ounces
81,000
1,774,000
1,855,000
1,319,000
3,175,000
21
RESOLUTE MINING LIMITED 2022 ANNUAL REPORT
Syama North Drillhole Location Plan, showing holes drilled in 2022 with a base map of interpreted geology and drone imagery.
22
Operations ReviewRESOLUTE MINING LIMITED 2022 ANNUAL REPORT Syama North (A21 area) Cross Section at 1201800N showing interpreted geology, drillhole traces and gold intersections.
Syama North (Quartz Vein Hill area) Cross Section at 1200850N showing interpreted geology, drillhole traces and gold intersections.
23
Operations Review RESOLUTE MINING LIMITED 2022 ANNUAL REPORT Operations Review
Syama North (A21 area) Longitudinal Section showing Mineral Resource Block Model historic oxide pits, proposed pits, and drillhole
pierce points.
Aeromagnetic Survey
Mako
A new low-level, high definition heliborne aeromagnetic survey
was completed in 2022 to improve on the historical wide-spaced
aeromagnetic coverage. The survey covered the whole 85 km
length of the Greenstone Belt held under licence in an effort
to delineate more Mineral Resources which are the long-term
future of the mining operation.
A total of 30,175 line km was completed during the survey
providing an excellent dataset to aid exploration in the future.
Detailed interpretation was completed in late 2022 with the
study identifying a set of previously unidentified ENE to
NE structures. These structures are coincident with known
mineralisation and has outlined a number of new targets which
will be tested in 2023.
Resolute is seeking to extend the current remaining five-year
mine life of the Mako project by investing in exploration on the
Petowal Mine Lease and the neighbouring Research Permits.
The Company has acquired a large tenement position adjacent
to the Mako Mine and is investing in the exploration potential of
the region.
During 2022, Resolute undertook comprehensive regional
exploration programs over the 100% owned projects Koulountou
and Sangola and the joint ventures at Mamakanti and Tombo.
During 2022 Resolute signed a new agreement for the Lamina
Project which is located 20km east of Mako. Exploration
commenced at Laminia in late 2022, with drill targets identified
and planned to be tested in early 2023.
Guinea
Resolute controls four gold projects in Guinea located within
and along the margin of the Siguiri Basin. Work carried out
during 2022 included permit wide soil and auger geochemical
surveys, which identified a number of gold anomalies that are
being progressively tested by Reverse Circulation (RC) drilling.
Follow up RC drilling in 2022 at the Mansala prospect located
within the Niagassola Research Permit has identified a low to
moderate grade gold mineralised shear zone with a strike length
of greater than 400m. This prospect will be further tested with
RC drill programs in early 2023.
24
RESOLUTE MINING LIMITED 2022 ANNUAL REPORT
ORE RESERVES AND
MINERAL RESOURCES
25
Ore Reserves and Mineral Resources RESOLUTE MINING LIMITED 2022 ANNUAL REPORT ORE RESERVES AND
MINERAL RESOURCES
Significant increase in mineral resources and an increase in
ore reserves after accounting for 2022 depletion.
Governance and Controls
Resolute reports its Mineral Resources
and Ore Reserves on an annual basis,
with Mineral Resources inclusive of
Ore Reserves. Reporting is in accordance
with the 2012 Edition of the Australasian
Code for Reporting of Exploration Results,
Mineral Resources and Ore Reserves and
applicable Listing Rules.
All Competent Persons named by
Resolute are suitably qualified and
experienced as defined in the JORC
Code 2012 Edition.
Competent Persons Statement
The information in this announcement
that relates to data quality, geological
interpretation and Mineral Resource
estimation for the various projects unless
specified in the list below is based on
information compiled by Bruce Mowat,
a Competent Person who is a Member
of the Australian Institute of Geoscientists
and a full-time employee of Resolute
Corporate Services Pty Ltd, a wholly-
owned subsidiary of Resolute Mining
Limited.
Mr Mowat has sufficient experience that
is relevant to the styles of mineralisation
and type of deposits under consideration
and to the activity being undertaken as
a Competent Person as defined in the
2012 Edition of the “Australasian Code for
Reporting of Exploration Results, Mineral
Resources and Ore Reserves” (JORC
Code 2012). Mr Mowat consents to the
inclusion in this announcement of the
material compiled by him in the form and
context in which it appears.
The information in this statement that
relates to the Mineral Resources and
Ore Reserves listed below is based on
information and supporting documents
prepared by the Competent Person
identified. Each person specified in the list
has sufficient experience which is relevant
to the style of mineralisation and type of
deposit under consideration and to the
activity, which has been undertaken to
qualify as a Competent Person as defined
in the JORC Code 2012.
Mr Ndjibu and Mr Patani are full-time
employees of Resolute Corporate
Services Pty Ltd, a wholly-owned
subsidiary of Resolute Mining Limited.
Mr Johnson is a full-time employee of
MPR Geological Consultants Pty Ltd.
Mr Osiejak is a full-time employee of
Cube Consulting Pty Ltd. Ms Havlin is
an employee of Snowden Optiro Pty
Ltd. Each person identified in the list
below consents to the inclusion in this
announcement of the material compiled
by them in the form and context in
which it appears.
Competent Persons
Activity
Syama Resource
Syama Reserve
Syama North Resource
Syama North Reserves
Syama Tailings Facility
Tabakoroni OP Resource
Tabakoroni OP Reserves
Tabakoroni UG Resource
Tabakoroni UG Reserves
Tellem Resource
Tellem Reserves
Cashew NE Resource
Cashew NE Reserves
Paysans Resource
Paysans Reserves
Porphyry Zone Resource
Porphyry Zone Reserves
Mako Resources – In Situ
Mako Resources – Stockpiles
Mako Reserves
26
Competent Person
Membership Institution
Patrick Smillie
Gito Patani
Patrick Smillie
Kitwa Ndjibu
Susan Havlin
Susan Havlin
Kitwa Ndjibu
Susan Havlin
Gito Patani
Nic Johnson
Kitwa Ndjibu
Bruce Mowat
Kitwa Ndjibu
Nic Johnson
Kitwa Ndjibu
Bruce Mowat
Kitwa Ndjibu
Marcus Osiejak
Bruce Mowat
Kitwa Ndjibu
Society for Mining, Metallurgy & Exploration
Australasian Institute of Mining & Metallurgy
Society for Mining, Metallurgy & Exploration
Australasian Institute of Mining & Metallurgy
Australasian Institute of Mining & Metallurgy
Australasian Institute of Mining & Metallurgy
Australasian Institute of Mining & Metallurgy
Australasian Institute of Mining & Metallurgy
Australasian Institute of Mining & Metallurgy
Australian Institute of Geoscientists
Australasian Institute of Mining & Metallurgy
Australian Institute of Geoscientists
Australasian Institute of Mining & Metallurgy
Australian Institute of Geoscientists
Australasian Institute of Mining & Metallurgy
Australian Institute of Geoscientists
Australasian Institute of Mining & Metallurgy
Australasian Institute of Mining & Metallurgy
Australian Institute of Geoscientists
Australasian Institute of Mining & Metallurgy
Ore Reserves and Mineral ResourcesRESOLUTE MINING LIMITED 2022 ANNUAL REPORT
ORE RESERVES STATEMENT
as at 31 December 2022
Ore Reserves
Proved
g/t
Tonnes
(000s)
oz
(000s)
Tonnes
(000s)
Probable
g/t
Total Reserves
Group Share
oz
(000s)
Tonnes
(000s)
g/t
oz
(000s)
oz
(000s)
Mali
Syama Underground
Syama Stockpiles
Sub Total (Sulphides)
Satellite Deposits
Stockpiles (Satellite Deposits)
0
707
707
164
881
Sub Total Satellite Deposits
1,045
Tabakoroni Underground
Tabakoroni Open Pit
Tabakoroni Satellite Deposits
Tabakoroni Stockpiles
Sub Total Tabakoroni
Mali Total
Senegal
Mako
Mako Stockpiles
Senegal Total
Total Ore Reserves
Notes:
0
48
0
1,080
1,129
2,880
697
3,861
4,558
7,438
0.0
2.0
2.0
2.2
1.3
1.5
0.0
1.9
0.0
1.4
1.5
1.6
2.0
1.0
1.2
1.3
0
46
46
11
38
49
0
3
0
50
53
25,500
1,817
27,317
12,367
1,403
13,770
5,028
222
0
0
5,250
148
46,226
44
128
173
4,948
0
4,948
320
51,174
2.6
1.3
2.5
2.5
1.0
2.3
4.7
1.7
0.0
0.0
4.6
2.7
2.2
0.0
2.2
2.6
2,094
25,500
78
2,523
2,172
28,023
975
43
12,530
2,284
1,018
14,815
766
5,028
12
0
0
270
0
1,080
778
6,378
2.6
1.5
2.5
2.4
1.1
2.2
4.7
1.7
0.0
1.4
4.1
80%
1,675
99
2,094
124
2,218
1,774
987
81
1,067
766
15
0
50
831
789
65
854
90%
689
13
0
45
748
3,964
49,106
2.6
4,112
3,373
348
5,645
0
3,861
348
9,506
4,312
58,613
2.2
1.0
1.7
2.5
90%
353
115
468
392
128
520
4,633
3,841
1. Mineral Resources include Ore Reserves.
2. All tonnes and grade information have been rounded to reflect relative uncertainty of the estimate, small differences may be present in the totals.
3. Syama Underground mine planning is based on a shut-off grade of 2g/t.
4. Syama Satellite Reserves are reported above 0.8g/t cut-off.
5. Tabakoroni Underground Reserves are reported above a 2.75g/t cut-off.
6. Tabakoroni Satellite Reserves are reported above 0.8g/t cut-off.
7. Mako Reserves are reported above 0.9g/t cut-off.
27
Ore Reserves and Mineral Resources RESOLUTE MINING LIMITED 2022 ANNUAL REPORT MINERAL RESOURCES STATEMENT
as at 31 December 2022
Mineral Resources
Measured
Indicated
Inferrred
Total Resources
Group Share
Tonnes g/t
(000s)
oz
(000s)
Tonnes g/t
(000s)
oz
(000s)
Tonnes g/t
(000s)
oz
(000s)
Tonnes g/t
(000s)
oz
(000s)
oz
(000s)
Mali
Syama Underground
21,235 3.5
2,362
25,920 3.0
2,483
1,359
Stockpiles (Sulphide)
707
2.0
46
1,771
1.3
75
0
80%
2.6
0.0
112
0
48,514
3.2
4,957
3,966
2,478
1.5
120
96
Sub Total Sulphides
21,942 3.4
2,408
27,691 2.9
2,558
1,359
2.6
112
50,992
3.1
5,077
4,062
Satellite Deposits
1,748
2.5
Stockpiles (Satellite Deposits)
739
1.6
141
38
24,102 2.8
2,135
19,156
2.6
1,604
45,006
2.7
3,880
3,104
1,657
1.0
52
46
1.1
2
2,442
1.2
91
73
Sub Total Satellite Deposits
2,487
2.2
179
25,759 2.6
2,187
19,202
2.6 1,606
47,448
2.6
3,972
3,177
Old Tailings
0
0.0
0
0
0.0
0
17,000
0.7
365
17,000
0.7
365
292
Tabakoroni Open Pit
Tabakoroni Underground
33
6
3.9
3.5
Tabakoroni Satellite Deposits
190
2.0
Tabakoroni Stockpiles
Sub Total Tabakoroni
945
1,174
1.4
1.6
4
1
12
42
59
205
5.0
33
1
5,179
4.8
792
1,644
0
0
0.0
0.0
0
0
0
0
6.0
3.5
0.0
0.0
0
239
182
6,829
0
0
190
945
4.9
4.4
2.0
1.4
38
976
12
42
90%
34
878
11
38
5,384 4.8
826
1,646
3.5
183
8,204
4.0
1,067
960
Mali Total
25,603 3.2
2,645 58,834 2.9
5,570
39,207
1.8 2,265 123,644
2.6 10,481
8,492
Senegal
Mako
Mako Stockpile
1,103
1.6
3,852
1.0
56
121
8,458
1.8
487
682
0
0.0
0
0
Senegal Total
4,955
1.1
177
8,458 1.8
487
682
0.9
0.0
0.9
19
0
19
10,243
3,852
1.7
1.0
561
121
14,095
1.5
683
90%
505
109
614
Total Mineral Resources
30,558 2.9
2,823
67,293 2.8
6,057
39,888
1.8 2,284
137,739
2.5
11,164
9,106
Notes:
1. Mineral Resources include Ore Reserves.
2. All tonnes and grade information have been rounded to reflect relative uncertainty of the estimate, small differences may be present in the totals.
3. Resources are reported above 1.0g/t cut-off for the Syama North.
4. Resources for the SLC at Syama is reported within an MSO shape generated at 1.3g/t and south of the SLC within an MSO shape generated at 1.5g/t.
5. Resources for the Cashew NE, Paysans, Tellem and Porphyry Zone (Splay) are reported above a cut-off of 1.0g/t.
6. Resources for Tabakoroni Open Pit are reported above a cut-off of 1.0g/t and within a US$2,000 optimised shell.
7. Resources for the Tabakoroni Underground are reported within an MSO shape generated at 1.75g/t (equivalent to US$2,000).
8. Mako Resources are reported above a cut-off of 0.5g/t and within a US$2,000 optimised shell.
28
Ore Reserves and Mineral ResourcesRESOLUTE MINING LIMITED 2022 ANNUAL REPORT FINANCIAL
REVIEW
29
Financial Review RESOLUTE MINING LIMITED 2022 ANNUAL REPORT Financial Review
30
30
30
Resolute Mining Limited 2022 Annual Report
Resolute Mining Limited 2021 Annual Report
Financial ReviewRESOLUTE MINING LIMITED 2022 ANNUAL REPORT FINANCIAL PERFORMANCE
The Group’s underlying net profit after tax (before significant items) was $20.3 million, with a reported net loss after tax of $34.7
million. The financial performance of Resolute for the year ended 31 December 2022 is summarised below:
Profit and Loss Analysis
$’000
Revenue
Cost of sales excluding depreciation and amortisation
Royalties and other operating expenses
Administration and other corporate expenses
Exploration and business development expenditure
EBITDA
Depreciation and amortisation
Net interest and finance costs
Inventories NRV movements and obsolete consumables
Fair value movements and unrealised treasury transactions
Other
Impairment expense
Gain on disposal
Indirect tax expense
Net loss before tax
Income tax expense
Reported net loss after tax
Significant items2:
Disputed Senegalese tax expense
Historical tax adjustments
Impairment of obsolete consumables
Impairment expense
Underlying net profit/(loss) after tax2
2022
Group
2021
Group
651,129
549,242
(411,482)
(324,984)
(62,016)
(59,066)
(14,850)
(16,809)
(14,615)
(18,484)
148,166
129,899
(85,894)
(120,993)
(15,273)
(11,741)
(36,077)
(44,258)
(13,345)
(27,697)
1,767
(3,481)
-
-
(227,464)
2,707
(13,449)
(24,760)
(14,105)
(327,789)
(20,560)
(39,682)
(34,665)
(367,471)
23,926
14,809
16,249
7,132
39,334
-
-
227,464
20,319
(93,541)
1 Amounts presented above are aggregate balances of certain line items presented in the Financial Statements.
2 This financial performance indicator is a non-IFRS measure and unaudited.
Group EBITDA of $148.2 million 2022 was a 14% improvement
on the comparative period reflecting:
• Higher revenue of $651.1 million from gold sales of 357,447oz
(up 13%) at an average realised price of $1,819/oz (up 5%).
The higher ounces sold reflects increased gold production
(up 19%) due to:
o i mproved Sulphide processing performance with gold
• Lower exploration and business development expenditure
as a result of prior year transaction costs associated
with divestments (sale of Bibiani and Cote D’Ivoire
exploration assets).
The following significant items have been added back to the
reported net loss of ($34.7) million in arriving at the underlying
net profit of $20.3 million for the year ended 31 December 2022:
recovered up 4% (gold poured up 19%);
• Disputed Senegalese tax expense ($23.9m), relates to an
o higher gold recovered from both Syama Oxide (up 8%)
and Mako (up 2%); and
o significant drawdown from gold in circuit of 21,752oz
(2021: 3,084oz).
• Higher cost of sales due to significant increases in fuel
and consumable prices as well as the impact of non-cash
adjustments for bullion and gold in circuit (as a result of the
continued drawdown of material).
ongoing dispute with the Senegalese tax authorities regarding
PMC’s tax exoneration status;
• Historical tax adjustments ($14.8m), included within this
amount is $4.0m expected to be cash settled, with the
remainder expected to be settled with VAT and other tax
credits;
• Provision for obsolete consumables ($16.2m), with
$2m pertaining to Mako and the remainder to Syama.
31
Financial Review RESOLUTE MINING LIMITED 2022 ANNUAL REPORT
Financial Performance (continued)
Movements in the cash and bullion balances are summarised in the cashflow waterfall below:
Cashflow
$’m
350
300
250
200
150
100
50
0
105.7
83.6
161.1
(63.0)
(16.6)
88.6
(42.5)
1.9
(195.0)
(19.3)
(10.5)
94.0
Cash and
Bullion
1 Jan 22
Operating
Cash
Flows
Capex
Exploration Working
Capital
Asset
Sale
Proceeds
Equity
Proceeds
Debt
Repayments
Net
Overdraft
Drawdown
Interest
Paid
Government
Dividend
and
Other Taxes
Cash and
Bullion
31 Dec 22
Financial Position
Net debt decreased by $197.2 million to $31.6 million at 31 December 2022 (31 December 2021: $228.8 million). Total borrowings at
31 December 2022 were $125.6 million comprising $80.0 million drawn on the Term Loan Facility and Revolving Credit Facility (RCF),
and overdraft facilities in Mali and Senegal of $45.6 million. Available liquidity of $189 million includes cash and bullion of $94.0 million
and $95.0 million of undrawn RCF. As at the date of this release, the RCF has been fully repaid with $100 million available to be
redrawn.
Resolute continued to invest in the business in 2022 with spending on development, property, plant, and equipment totalling
$63.0 million (2021: $56.9 million) including outlays for tailings facilities across both sites, capitalised stripping costs and project
capital at Syama.
Equity capital raise
The Company successfully completed an initial institutional placement and partially underwritten 1 for 1.11 existing share entitlement
offer during the last quarter of 2022. A total of A$164 million was raised at the offer price of A$0.16 per New Share. The table below
summarises the amounts received:
Shares
(millions)
Amount
(A$ million)
258
342
289
136
1,025
41
55
46
22
164
Placement
Institutional Entitlement Offer
Retail Entitlement Offer Take-up
Allotted to Sub-underwriters
Total
32
Financial ReviewRESOLUTE MINING LIMITED 2022 ANNUAL REPORT RISK
MANAGEMENT
33
Risk Management RESOLUTE MINING LIMITED 2022 ANNUAL REPORT RISKS
Resolute maintains a proactive and considered approach to risk
and opportunity management across the Group.
Resolute’s business, operating and financial results and
performance are subject to various risks and uncertainties,
some of which are beyond Resolute’s reasonable control. Set out
below are matters which Resolute has assessed as having the
potential to have a material impact on the business, operating
and/or financial results and performance and fulfilment of the
aspirations of the Group. The matters identified below are not
necessarily listed in order of importance and are not intended
as an exhaustive list of all the risks and uncertainties associated
with Resolute’s business. Additional risks and uncertainties
not presently known to Management and the Board, or that
Management and the Board currently believe to be immaterial or
manageable, may adversely affect Resolute’s business.
At an enterprise risk level Resolute has a Risk Management
Framework and determines risk according to a group Risk
Architecture. Resolute has a process in place to identify those risk
events that may have a material impact on the Group. Material
risks are documented and monitored with the implementation of
preventative and mitigating processes and controls. Implemented
processes and controls may not prevent a material risk event
from occurring or eliminate the potential impact entirely. Further,
Resolute’s business, operating and/or financial results and
performance may be materially impacted should any such actions
and controls fail, or be disrupted.
Resolute maintains a range of insurance policies to assist in
mitigating the impact of events which could have a significant
adverse effect on its operations and profitability. Resolute’s
insurance policies carry deductibles and limits which will lead to
Resolute not recovering the full monetary impact of an insured
event. Resolute’s insurances do not cover all actual or potential
risks available, where the premium associated with insuring
against the risk is considered excessive, or if the risk
is considered to have a low likelihood of eventuating.
The occurrence of events for which Resolute is not insured may
adversely affect its cash flows and overall profitability.
Risk appetite statements have been established by the Resolute
Board and guide management and mitigation efforts across the
business. Resolute’s risk management approach aligns with ISO
31000:2018 and is guided by the ASX Corporate Governance
Council Principles and Recommendations 4th edition.
The Board has ultimate accountability for ensuring material risks
faced by the Company are identified and effectively managed in
accordance with predetermined risk appetite statements. Board
intervention occurs when there is a significant change in the
Company’s risk profile across any of its material exposures.
The Audit and Risk Committee has the mandate from the Board to
provide risk management oversight across all material exposures.
The Audit and Risk Committee engages proactively with
the Executive Team to optimise Resolute’s systems of risk
identification, mitigation, management, assurance and reporting.
Executive management provide regular updates to the Audit and
Risk Committee relative to new and emerging risks and their
mitigations in line with leading practice.
In 2022 Resolute implemented the CGR Foundation software,
which has enabled improved risk identification, mitigation, control
evaluation and reporting. This software complements the existing
INX InControl system that has been implemented across the
operations to manage risk and opportunity at each asset.
Systemising Resolute’s risk management approach across the
Group ensures a standardised risk approach is consistently
applied and enables improved reporting.
Risk Management Framework
Board + Audit and Risk Committee
Define Risk Appetite
Executive + Leadership Teams
Custodians of the Risk Management Framework
1
Identify Risk
2
3
4
Assess Risk
Mitigate and Manage Risk
Monitor and Report Risk
Systems Support
Integrated reporting to
enable more effective
governance and
decision making
Integrated risk profile
Coordinated
touch points with
the business
Efficiencies through
use of technology
Standardisation of risk
and opportunity
management
Operations
Corporate
Critical
Fatality Risks
Environmental
Investment Level
Finance
Cyber
Sovereign
/ Political
Business Continuity
Unplanned Events
Sustainability
/ ESG
Resources
and Reserves
34
Risk ManagementRESOLUTE MINING LIMITED 2022 ANNUAL REPORT Risk and Mitigation Summary
The following table provides a high-level account of Group material exposures.
RISKRISKRISK
Serious injury or fatality
(single or multiple)
sustained at work or whilst
commuting to/from work.
RISK
Security event
adversely impacting
employee health, safety
and wellbeing and or
business continuity.
RISK
Unable to effectively
respond/adjust to physical
and legislative operating
environment changes driven
by Climate Change, which
threatens business
continuity/viability.
RISK
Uncertain political/fiscal/
tax environments and
government instability.
• Permanent disability (physical
• Fatality
S
T
C
A
P
M
or mental)
L
A
I
T
N
E
T
O
P
I
• Injury and illness
• Industry standard safety
management systems
• Embedded safety conscious culture
• Staff safety training programs
• Legal and legislative implications
• Financial loss
• Reputational damage
• Contractor pre qualification,
induction and training
• Regular review processes
and procedures
• Critical Hazard Management
• High risk training systems and
competency verification
• Kidnap/ransom
• Compromised asset security
• Theft (e.g. fuel, inventory etc.)
• Financial loss
• Reputational damage
• Increased attrition
G
N
I
T
A
G
I
T
I
M
S
E
C
I
T
C
A
R
P
L
A
I
T
N
E
T
O
P
S
T
C
A
P
M
I
• Security Management Framework
S
• Specialist internal/external security
E
C
I
T
C
A
R
P
services providers
• Crisis and Emergency
Management System
G
N
I
T
A
G
I
T
I
M
• Multi-source real-time intelligence
• Regular review and audits
• Strong stakeholder relations and
engagement
L
A
I
T
N
E
T
O
P
S
T
C
A
P
M
I
G
N
I
T
A
G
I
T
I
M
S
E
C
I
T
C
A
R
P
L
A
I
T
N
E
T
O
P
S
T
C
A
P
M
I
G
N
I
T
A
G
I
T
I
M
S
E
C
I
T
C
A
R
P
• Material increase in operating costs
• Licence to operate threatened/
suspended
• Inability to acquire debt funding/
financing
• Reputational damage
• Loss of investor confidence
• Environmental licence conditions
• Robust environmental monitoring
• Ongoing operational
emissions modelling
• Group Sustainability Strategy
and net zero commitment
• Regular community interactions
and engagement
• Continual air quality monitoring
• External assurance (tailings,
environmental etc)
• Loss of, or significant reduction to,
• Productivity and cost of production
licence to operate
affected
• Increased regulation and operating
• Supply chain disruptions
scrutiny
• Reputational damage and
deterioration of social licence
to operate
• Ongoing stakeholder/government
• Active proponents of non-political
engagement
government agendas
• Dedicated Country Manager
• Mining Agreements in each
and other in-country expertise
operating jurisdiction
• Strong local development
• Business continuity planning
track record and local
stakeholder support
35
Risk Management RESOLUTE MINING LIMITED 2022 ANNUAL REPORT
Risk and Mitigation Summary
The following table provides a high-level account of Group material exposures1.
RISK
Health event impacting
employee health, safety and
wellbeing and/or business
operations/continuity
L
A
I
T
N
E
T
O
P
S
T
C
A
P
M
I
G
N
I
T
A
G
I
T
I
M
S
E
C
I
T
C
A
R
P
• Illness
• Permanent disability
• Fatality
• Operational site quarantined
and/or large-scale disruption
of operations
• Reputational damage impacting ability
to maintain and attract staff/contractors
to site
• Deterioration of government/stakeholder
relations
• Infectious disease management
protocols
• Medical review and external audits
• Occupational health assessments/
• Implementation of WHO guidelines
surveillance
and other industry standards
• Injury and medical emergency
• Primary, occupational and
evacuation protocols
emergency medical capability
established at each asset
• Malaria mitigation program
RISK
Bribery or corruption
• Compliance breach
S
T
• Financial impact
C
A
• Reputational damage
P
M
I
L
A
I
T
N
E
T
O
P
• Ongoing Anti-Bribery and
• Independently operated whistle-
G
N
I
T
A
G
I
T
I
M
S
E
C
I
T
C
A
R
P
Corruption and Code of Conduct
training and declarations are in
place for all staff
• Inclusion of Anti-Bribery and
Corruption requirements for
sub-contractors included within
contracts
blower hotline
• Financial system controls in place
• Fraud risk assessments
• Regular review and audits
• Financial impact
S
T
C
A
P
M
• Negative operational impacts
• Reputational damage and unmet
shareholder expectations
I
L
A
I
T
N
E
T
O
P
• Significant operational delays
• Inability to service debt
• Share price decline
• Hostile takeover
• Established Life of Mine,
budgeting and forecasting
processes
• Maintenance schedules and
processes
• Mine performance management
and reporting processes
G
N
I
T
A
G
I
T
I
M
S
E
C
I
T
C
A
R
P
• Contractor management procedures
• Staff recruitment and training
programs
• Use of third party best in class technical
advisors and consultants
• Grade control and metallurgical
accounting systems
• Suboptimal project outcomes
S
T
• Future operational impacts
C
A
P
• Safety of staff
M
I
L
A
I
T
N
E
T
O
P
• Financial impact
• Reputational damage
• Failure to meet performance indicators
• Established project
methodology
• Project monitoring and reporting
processes
G
N
I
T
A
G
I
T
I
M
S
E
C
I
T
C
A
R
P
• Project governance structures
• Procurement and contract
in place
• Use of third-party technical
advisors and consultants
management procedures and
practices
• Regular review and audits
RISK
Inability to achieve and
maintain required/planned
operational performance to
meet ROI and shareholder
expectations
RISK
Project delivery failure
36
Risk ManagementRESOLUTE MINING LIMITED 2022 ANNUAL REPORT
Risk and Mitigation Summary
The following table provides a high-level account of Group material exposures1.
RISK
Critical operational or
informational technology
failure
RISK
Human Rights exposures
associated with Resolute’s
business activities threatens
business continuity/viability
• Financial loss
S
T
C
A
P
M
• Loss of critical information
I
L
A
I
T
N
E
T
O
P
• Legislative and or regulatory breaches
• Negative impacts on operations
and projects
G
N
I
T
A
G
I
T
I
M
S
E
C
I
T
C
A
R
P
L
A
I
T
N
E
T
O
P
S
T
C
A
P
M
I
G
N
I
T
A
G
I
T
I
M
S
E
C
I
T
C
A
R
P
• Network security design and
firewalls
• Network penetration testing
• Information technology and operational
• Network backups and disaster
technology convergence strategy
recovery processes
• Ongoing IT training
• IT infrastructure upgrade programs
• Regular review and audits
• Reputational damage
• Loss of investor confidence
• Decreased ability to acquire debt
funding/financing
• Deterioration in key stakeholder
relationships
• Supply chain disruptions
• Suspension/revocation of licence
to operate
• Human Rights provisions in all
contract service agreements
with key suppliers
• Labour law compliance for all
employment practices
• Commitment to Voluntary
Principles of Security and
Human Rights
• Training and education of workforce
• Stakeholder engagement
• Human Rights Policy
• Modern Slavery Voluntary Statement
RISK
Inability to maintain/grow
Resources and Reserves
resulting in material decline
in market confidence and
Company valuation
RISK
Inflationary impact
on costs
• Financial impact
S
T
C
A
P
M
• Reputational damage
• Share price decline
I
L
A
I
T
N
E
T
O
P
• Inability to service debt
• Hostile takeover
G
N
I
T
A
G
I
T
I
M
S
E
C
I
T
C
A
R
P
L
A
I
T
N
E
T
O
P
S
T
C
A
P
M
I
• Active well-funded exploration
• Effective utilisation of external
campaigns
• Highly qualified professional
personnel
• Established relationships with
multiple drilling contractors for
contract labour/technical capability
consultants to broaden capability
• Well managed and controlled mining
tenement administration
• Stakeholder engagement
• Identification and acquisition of
new exploration projects
• Material reduction in operating
margin
• Significant increase in capital costs
• Reduction in inventory values
• Higher costs negatively impacting
the economics of future projects
• Reduction in Ore Reserves
• Reduction in recoverable amount may
lead to impairment of assets
• Increase rehabilitation costs may lead
to an increase in that provision
with low gearing levels
• Maintaining a strong balance sheet
S
E
C
I
T
C
A
R
P
• Maintain conservative levels of
liquidity
G
N
I
T
A
G
I
T
I
M
• Continual focus on cost control
• Seek to improve asset portfolio by selling
high cost assets and only developing or
buying assets in the bottom half of the
cost curve
RISK
Capital & Liquidity
L
A
I
T
N
E
T
O
P
S
T
C
A
P
M
I
• Inability to refinance existing
• Banks may impose onerous reporting
debt facilities may lead to more
expensive funding
• May require additional equity to
pay down debt
and repayment schedules
• Reputational damage
• Loss of investor confidence
G
N
I
T
A
G
I
T
I
M
production and costs to pay
down remaining debt
• Meet or exceed budgeted
S
E
C
I
T
C
A
R
P
• Seek to early refinance of debt
facilities
• Continual focus on cost control
• Maintain prudent levels of hedging
which deliver profitable margins
37
Risk Management RESOLUTE MINING LIMITED 2022 ANNUAL REPORT
Risk and Mitigation Summary
The following table provides a high-level account of Group material exposures1.
RISK
Failure to deliver
technology to support
operational and strategic
needs and/or exposes
Resolute to cyber attack
RISK
Catastrophic failure of
Tailings Storage Facility
(TSF)
L
A
I
T
N
E
T
O
P
S
T
C
A
P
M
I
• Financial impact (failure to
realise efficiencies and become
uneconomical)
• Shift in skillset required
• Data privacy and security issue
• Operational impacts
• Failure to report (financial,
operational etc)
• IFS deployed across RCS, Syama
and Bamako
• Cyber Security Policy and
standards implemented
• End user computing remediation
• Significant cyber security remediation
activities completed
• OT Principle to lead the upgrade program
• OT/IT segregations
• Third party access controls into OT and
IT space
• User based log-in and audit
• Deployed user assessment training
(cyber training)
completed and migration to
Office 365
• Network connections upgraded
and data centre containers
deployed
• IT computer and storage
infrastructure upgraded
• Wireless network upgrade in
progress and lightning protection
upgraded
• Operational Technology
(OT) computer and storage
infrastructure upgraded
• Surface and underground OT
networks connected
• Intranet, Controlled Document
Management System and Data
Room implemented
• Suspension/revocation of
operating licence
• Social activism/outrage
• Financial penalties
• Significant production impacts
• Long-term environmental damage
• Health decline/fatality
• Asset Shutdown
• Reputational damage
• Loss of investor/stakeholder confidence
• Tailings governance framework
• Daily, weekly, monthly TSF
monitoring
• Environmental monitoring
e.g. ground/surface water quality
• Engineer on Record e.g.
Golder, Advision, Knight Piesold
• Annual external audits
• Piezometers - ground stability
• Deposition strategies
• Operation and design parameters
• Specialist TSF contractors/expertise
(non-engineering)
G
N
I
T
A
G
I
T
I
M
S
E
C
I
T
C
A
R
P
L
A
I
T
N
E
T
O
P
S
T
C
A
P
M
I
G
N
I
T
A
G
I
T
I
M
S
E
C
I
T
C
A
R
P
(1) ‘Material Exposure’ is defined in the ASX Recommendations as “a real possibility that the risk in question could materially impact the Company’s ability to create or preserve
value for Shareholders over the short, medium or longer term”.
38
Risk ManagementRESOLUTE MINING LIMITED 2022 ANNUAL REPORT
CORPORATE
GOVERNANCE
39
RESOLUTE MINING LIMITED 2022 ANNUAL REPORTCorporate Governance Corporate Governance
CORPORATE GOVERNANCE
Resolute is committed to the highest standards of corporate governance
and ethical conduct.
Code of Conduct
Resolute willingly operates under a strict
Code of Conduct (Code) that underpins,
guides and enhances the conduct
and behaviour of Directors, employees,
contractors and consultants in
performing their everyday roles.
Securities Trading
It is Resolute’s policy that Directors
and employees must ensure all trading
of Company securities they undertake
complies with the Australian
Corporations Act and the retained
Market Abuse
Regulation as it forms part of English
law. The Company’s Securities Trading
Policy provides specific detail and is
available to view online at
www.rml.com.au/about-us/corporate-
goverance/
Conducting Business Overseas
It is Resolute’s policy that its business
affairs and operations should at all
times be conducted legally, ethically,
and in accordance with community
standards of integrity and propriety.
The Code requires business dealings
must be conducted in accordance
with Australian and other applicable
jurisdictions’ anti-bribery laws.
The Company’s Anti-Bribery and
Corruption Policy and Whistleblower
Policy provide specific detail and are
available to view online at www.rml.com.
au/about-us/corporate-goverance/
Additional Policies
In addition to those mentioned above,
Resolute has implemented a number of
charters and additional policies. These
are available to view online at
www.rml.com.au/about-us/corporate-
goverance/
The Code provides that the following
core principles guide the behaviour of
Directors, employees, contractors and
consultants:
• Act with integrity and professionalism
in the performance of their duties
and in the proper use of company
information, funds, equipment and
facilities
• Exercise fairness, honesty, respect and
consideration in all their dealings while
carrying out their duties
• Avoid real, apparent or perceived
conflicts of interest.
The Code provides specific detail and is
available to view online at www.rml.com.
au/about-us/corporate-goverance/.
Conflicts of Interest
Resolute recognises that proper
disclosure and management of conflicts
of interests is integral to its reputation
and business objectives.
It is Resolute’s policy that all Directors
and employees must, wherever
possible, avoid any conflict of interest,
must disclose any potential for a conflict
of interest, and where a conflict cannot
be avoided, must manage that conflict
of interest.
The duty to avoid, disclose and manage
conflicts of interest does not prohibit all
conflicts of interest – rather it requires
that conflicts are adequately disclosed
and managed when they arise.
The Company’s Conflicts of Interest
Policy provides specific detail and is
available to view online at
www.rml.com.au/about-us/corporate-
goverance/
40
The Board
The Board of Directors is responsible for
the corporate governance of the Company.
The Board guides and monitors the
Company’s business and affairs on behalf
of Resolute shareholders by whom they are
elected and to whom they are accountable.
The table below sets out the appointment
date and qualifications of each Director.
DIRECTOR
Martin Botha
BScEng
DIRECTOR
Terry Holohan
BSc CEng MIMMM
DIRECTOR
Mark Potts
BSc (Hons), GAICD
DIRECTOR
Sabina Shugg
BSc (Mining
Engineering), MBA,
GAICD
DIRECTOR
Adrian Reynolds
MSc,Grad Dip
MinEng
DIRECTOR
Simon Jackson
B.Com FCA
F
O
E
L
O
R
Director and Chairman
R Non-Executive
O
T
C
E
R
D
(appointed Chairman
from 29 June 2017)
I
T
S
R
I
F
I
D
E
T
N
O
P
P
A
F
O
E
L
O
R
R
O
T
C
E
R
D
I
T
S
R
I
F
I
D
E
T
N
O
P
P
A
F
O
E
L
O
R
R
O
T
C
E
R
D
I
T
S
R
I
F
I
D
E
T
N
O
P
P
A
F
O
E
L
O
R
R
O
T
C
E
R
D
I
T
S
R
I
F
I
D
E
T
N
O
P
P
A
F
O
E
L
O
R
R
O
T
C
E
R
D
I
T
S
R
I
F
I
D
E
T
N
O
P
P
A
F
O
E
L
O
R
R
O
T
C
E
R
D
I
T
S
R
I
F
I
D
E
T
N
O
P
P
A
February 2014
Managing Director and
Chief Executive Officer
May 2022
Non-Executive
Director
June 2017
Non-Executive
Director
September 2018
Non-Executive
Director
May 2021
Non-Executive
Director
October 2021
RESOLUTE MINING LIMITED 2022 ANNUAL REPORT
The table below sets out the detail of the independence of each Director as at 31 December 2022.
Director
Martin Botha
Terry Holohan
Mark Potts
Sabina Shugg
Adrian Reynolds
Simon Jackson
Non-Executive
Independent
Yes
No
Yes
Yes
Yes
Yes
Yes
No
Yes
Yes
Yes
Yes
Gender
Male
Male
Male
Female
Male
Male
The Company’s Board Charter outlines the functions reserved to the Board and those delegated to management. The Board Charter
delineates the responsibilities and functions of the Board as being distinct from those of management. Resolute’s Board Charter is
available to view online at www.rml.com.au/about-us/corporate-goverance/
Committees
The Board has established the following
sub-committees to assist with internal
control and business risk management:
Remuneration Committee
As at 31 December 2022, the
Remuneration Committee consisted of
the following Non-Executive Directors:
Sustainability Committee
As at 31 December 2022, the
Sustainability Committee consisted
of the following members:
• Audit and Risk Committee
• Mr M. Potts (Chair)
• Remuneration Committee
• Nomination Committee
• Sustainability Committee
Audit and Risk Committee
As at 31 December 2022, the Audit
and Risk Committee consisted of the
following Non-Executive Directors:
• Mr. S Jackson (Chair)
• Mr M. Botha
• Mr M. Potts
• Ms S. Shugg
• Mr A. Reynolds
As at 31 December 2022 and as at the
date of release of this Annual Report, all
of the above listed members of the Audit
and Risk Committee were independent.
The Audit and Risk Committee provides
the Board with additional assurance
regarding the reliability of the financial
information for inclusion in the financial
reports, and is also responsible for:
•
•
•
•
•
Ensuring compliance with statutory
responsibilities relating to accounting
policy and disclosure
Liaising with, discussing and resolving
relevant issues with the auditors
Assessing the adequacy of accounting,
financial and operating controls
The review of half-year and annual
financial statements before submission
to the Board
The assessment, management and
monitoring of business risk.
The Audit and Risk Committee Charter
is available to view at www.rml.com.au/
about-us/corporate-goverance/
• Mr M. Botha
• Mr S. Jackson
• Mr A. Reynolds
• Ms S. Shugg
As at 31 December 2022 and as at the date
of release of this Annual Report, all of the
above listed members of the Remuneration
Committee were independent.
The Remuneration Committee is
responsible for recommending,
monitoring and reviewing compensation
arrangements for Resolute’s Directors,
CEO, Executive Committee and
employees, and making subsequent
recommendations to the Board.
The Remuneration Committee Charter is
available to view online at www.rml.com.
au/about-us/corporate-goverance/
Nomination Committee
As at 31 December 2022, the Nomination
Committee consisted of the following
Non-Executive Directors:
• Mr M. Botha (Chair)
• Mr S. Jackson
• Mr M. Potts
• Ms S. Shugg
• Mr A. Reynolds
As at 31 December 2022 and as at the date
of release of this Annual Report, all of the
above listed members of the Nomination
Committee were independent.
The Nomination Committee ensures
Directors are appropriately qualified
and experienced to discharge their
responsibilities and implements
procedures to assess the performance of
the CEO and the Executive Committee.
The Nomination Committee Charter is
available to view online at www.rml.com.
au/about-us/corporate-goverance/
• Mr T. Holohan (Chair)
• Ms S. Shugg
• Mr A. Reynolds
• Mr M. Potts
• Mr G. Montgomery
As at 31 December 2022 and as at the
date of release of this Annual Report,
Ms S. Shugg, Mr A. Reynolds and
Mr M. Potts were the Non-Executive
Directors on the Sustainability Committee
and were independent.
The Sustainability Committee’s key
purpose is to review, discuss and guide
all matters pertaining to Resolute’s
sustainability performance and
associated risks and opportunities.
These matters predominantly relate to the
performance of the people, health, safety,
security, environment and community
divisions within Resolute and will include
regular assessments of the Company’s
alignment with leading practice including,
but not limited to, the Responsible
Gold Mining Principles and the Global
Reporting Initiative.
The Sustainability Committee Charter is
available to view online at www.rml.com.
au/about-us/corporate-goverance/
Corporate Governance
Statement
The Board has adopted the
“Corporate Governance Principles
and Recommendations 4th edition”
established by the ASX Corporate
Governance Council and published
by the Australian Securities Exchange
(ASX) in February 2019.
Resolute’s Corporate Governance
Statement is available to view online at
www.rml.com.au/about-us/corporate-
goverance/
41
RESOLUTE MINING LIMITED 2022 ANNUAL REPORTCorporate Governance
Resolute Mining Limited - Code of Conduct
Outlines the Company’s expectations of all Directors, Officers and Employees
and is supported by the following:
Key policies, procedures and statements
Guiding our approach to responsible mining
Health, Safety and
Security Policy
Environment
Policy
Social
Performance Policy
Human Rights
Policy
Anti-Bribery and
Corruption Policy
Diversity and
Inclusion Policy
Complaints and
Grievance Procedure
Sexual
Harassment
Policy
Responsible
Tailings
Management Policy
Water
Stewardship
Policy
Working
Responsibly
Policy
Scope 3
Emissions
Methodology
Climate
Change Statement
Modern
Slavery Statement
Key shareholder protections
Securities
Trading
Policy
Enterprise Risk
Management
Framework
Continuous
Disclosure
Policy
Conflicts of
Interest
Policy
Privacy
Policy
Underpinned by
Whistleblower Policy
Formalised confidential reporting and recourse mechanism for inappropriate conduct
Resolute Mining Limited Board of Directors
Governance and strategic management of Resolute on behalf of shareholders
e
e
m it t
m
Oversees Board
membership,
performance and
development
mination C o
o
N
Sustain
a
bilit
y
C
o
m
m
i
t
t
e
e
Oversees
Sustainability
strategy and
performance
R
e
m
u
n
e
r
a
ti
o
n C
o
m
mittee
A u
d it & Risk Com
e
e
mitt
Oversees
financial reporting,
risk and opportunity
Managing Director and CEO
Responsible for the execution of Board approved strategies
and the leadership of the organisation
Oversees Group
remuneration
practices
42
RESOLUTE MINING LIMITED 2022 ANNUAL REPORTCorporate Governance
FINANCIAL
REPORT
43
RESOLUTE MINING LIMITED 2022 ANNUAL REPORTCorporate Governance Financial Report
DIRECTORS’
REPORT
Your Directors present their report on the consolidated
entity (referred to hereafter as the Group, Company or
Resolute) consisting of Resolute Mining Limited and the
entities it controlled for the year ended 31 December 2022.
Corporate Information
Resolute Mining Limited is a company limited by shares that is
incorporated and domiciled in Australia.
Nature of Operations and Principal Activities
The principal activities of entities within the consolidated entity
during the year were:
Directors
The Directors of Resolute in office at the end of the 2022
financial year and up to the date of this report, and information
on the Directors (including qualifications and experience and
directorships of listed companies held by the Directors at
any time in the last three years) are set out on pages 6-8
of this report.
Company Secretary
The Company Secretary of Resolute in office at the end of the
2022 financial year and information (including qualifications
and experience) is set out on page 10 of this report.
Interests in the shares and options of
Resolute and related bodies corporate
As at the date of this report, the interests of the Directors in
shares, options and Performance Rights of Resolute and related
bodies corporate were:
M. Botha
T. Holohan
A. Reynolds
M. Potts
S. Shugg
S. Jackson
Total
Fully Paid
Ordinary Shares
Performance
Rights
236,405
-
-
2,401,863
50,000
234,839
27,273
-
-
-
-
-
548,517
2,401,863
As at the date of this report, there were no options on issue held
by Directors.
• gold mining
• prospecting and exploration for minerals.
There has been no significant change in the nature of those
activities during the year.
Significant Changes in the State of Affairs
There have been no significant changes in the state of affairs
of the Company other than those stated throughout this report.
Significant Events after Reporting Date
On 19 January 2023, the Group announced that the Syama North
Resource estimate increased to 34.0 million tonnes at 2.9g/t for
3.2 million ounces of gold.
On 3 February 2023, the Company announced the appointment
of Chris Eger as its new Chief Financial Officer (CFO). Chris
commenced on 27 February 2023. Doug Warden, the incumbent
CFO, will remain with the Company until 31 March 2023 to ensure
an orderly handover.
Environmental Regulation Performance
The consolidated entity holds licences and abides by Acts and
Regulations issued by the relevant mining and environmental
protection authorities of the various countries in which the
Group operates. These licences, Acts and Regulations specify
limits and regulate the management of discharges to the air,
surface waters and groundwater associated with the mining
operations as well as the storage and use of hazardous materials.
There have been no significant known breaches of the
consolidated entity’s licence conditions or of the relevant Acts
and Regulations.
Responsibility Statement
In the opinion of the Directors and to the best of their
knowledge, the Directors’ Report includes a fair review of the
development and performance of the business and the financial
position of the consolidated entity, together with a description
of the principal risks and uncertainties that the consolidated
entity faces.
44
RESOLUTE MINING LIMITED 2022 ANNUAL REPORT
Financial Report
DIRECTORS’
REPORT
REMUNERATION REPORT
The Remuneration Report outlines the Director and Executive remuneration
arrangements of the Company and the Group in accordance with the requirements
of the Corporations Act 2001 and its Regulations.
The following information has been audited as required by section 308(c) of the Corporations Act 2001.
The Remuneration Report is presented under the following sections:
1. Letter from the Chair of the Remuneration Committee
2. Remuneration governance
3. Remuneration policy and outcomes
4. Non-Executive Director (NED) remuneration
arrangements and outcomes
5. Additional disclosures
6. Loans to Key Management Personnel (KMP)
and their related parties
7. Other information
RESOLUTE MINING LIMITED 2022 ANNUAL REPORT
45
Financial Report
DIRECTORS’ REPORT
R emuneration Report
1. LETTER FROM THE CHAIR OF THE REMUNERATION COMMITTEE
Proposed Remuneration Changes for 2023
Long Term Incentive Plan
The LTI comparator group used to measure relative Total
Shareholder Return (TSR) is reviewed annually prior to LTIP
invitations being dispatched to ensure relevant companies
are included, being gold producers of a similar size operating,
mostly, in similar jurisdictions. Details of the performance
criteria for the LTIP and the comparator group of companies are
included in the Remuneration Report in Section 3.
Our remuneration strategy is underpinned by our core values
and performance culture which includes setting challenging
stretch operational, financial and non-financial targets, and
rewarding their achievement.
Our key focus areas are sustainability, growth, innovation,
value creation and long-term stability, with the Board exercising
discretion to recognise achievement where outcomes may not
accurately reflect performance.
We will commit to consider the concerns and suggestions
regarding Executive pay and remuneration disclosure
and outcomes raised by our Shareholders and engage
with the required regulatory and external advisory services
where required.
We thank our Shareholders for their continued support.
Yours sincerely
Mark Potts
Chair - Remuneration Committee
Dear Shareholders,
On behalf of the Board of Directors of Resolute I am pleased to
present the Company’s Remuneration Report for the full financial
year ended 31 December 2022.
The Company’s last Remuneration Report for the year ended
31 December 2021 received substantial support at the Company’s
annual general meeting held on 20 May 2022, with 95.15% of votes
in favour of the report. We continue to engage with Shareholders
and proxy advisors on our remuneration framework and disclosure.
The Board is satisfied that the current remuneration framework
is appropriate, fit-for-purpose and consistent with our business
strategy and rewards high performance. As a result, only minor
changes were made to the Long-Term Incentive Plan (LTIP) during
2022. We continue to strive to provide a high level of disclosure
and transparency of our remuneration framework, particularly with
regard to:
• Objectives of our remuneration framework
• Pay mix (the disclosure of the pay mix and total remuneration
opportunity is discussed at maximum levels as opposed to
target remuneration)
• Short Term Incentive Plan (STI) targets and outcomes
• CEO long term incentive (LTI) arrangements.
Remuneration Outcomes
Actual company performance for the year ended 31 December
2022 for the KMP STIP outcome was 59% of the maximum
outcome possible. Individual KPI metrics were achieved
between target and stretch performance acting as a positive
multiplier to the outcome of company performance. This resulted
in a total KMP STIP payout of 79%.
Performance Rights were granted in 2020 (performance
hurdle tested) with a vesting date of 31 December 2022.
Of the 2,431,458 Performance Rights granted, 121,130
Performance Rights vested on 31 December 2022, representing
a 5% vesting outcome.
The Reserves and Resources Growth performance hurdle
outcome, which accounts for 25% of the total vesting outcome,
was 100%, triggering vesting. The TSR hurdle, which accounts
for 75% of the total vesting outcome, was not achieved.
As a result, no Performance Rights were granted in respect
of TSR performance.
The next period in which an LTIP grant will be tested to
determine the level of vesting is 31 December 2023, for
awards granted on 1 January 2021.
Non-Executive Director Remuneration
The Chairman’s fee is A$180,000 and NED fees are A$100,000.
In addition, the Chair of the Audit and Risk Committee receives
a Committee Chair fee of A$15,000 and the Chair of the
Remuneration Committee receives a Committee Chair fee of
A$10,000. Members of Committees do not receive a separate fee.
There was no increase in NED fees during 2022 and since
1 March 2019.
46
RESOLUTE MINING LIMITED 2022 ANNUAL REPORT DIRECTORS’ REPORT
R emuneration Report
2. REMUNERATION GOVERNANCE
Remuneration Committee
The Remuneration Committee is responsible for determining
and reviewing the compensation arrangements for Non-
Executive Directors, the Chief Executive Officer and Executives.
Executive remuneration is reviewed annually having regard to
individual and business performance, internal relativities and
external market information. The Remuneration Committee is
also tasked with determining performance targets, performance
against those targets and remuneration outcomes.
In accordance with best practice governance, the Remuneration
Committee is comprised solely of independent Non-Executive
Directors, as follows:
• Mark Potts (Chair)
• Martin Botha
• Simon Jackson
• Adrian Reynolds
• Sabina Shugg.
Nomination Committee
The Nomination Committee is responsible for Board and Board
Committee membership, succession planning and performance
evaluation. In accordance with best practice governance, the
Nomination Committee is comprised solely of independent
Non-Executive Directors, as follows:
• Martin Botha (Chair)
• Mark Potts
• Simon Jackson
• Adrian Reynolds
• Sabina Shugg.
Use of Remuneration Consultants
To ensure the Remuneration Committee is fully informed when
making remuneration decisions, it seeks external remuneration
advice as appropriate. Remuneration consultants are engaged
by, and report directly to, the Remuneration Committee.
In selecting remuneration consultants, the Remuneration
Committee considers potential conflicts of interest and requires
independence from KMP and other Executives as part of their
terms of engagement.
During 2022, no remuneration consultants were engaged.
No other consultants were engaged and there were no
remuneration recommendations, as defined by the
Corporations Act, provided during the year.
Reporting in United States Dollars
In this report the remuneration and benefits reported have
been presented in US dollars. Compensation for KMP is paid
in Australian dollars, US dollars and British Pound Sterling,
for reporting purposes, converted to US dollars based on the
average exchange rate for the payment period.
In order to derive US dollar comparatives between 2022 and
2021, the Australian dollar compensation paid during the year
ended 31 December 2022 was converted to US dollars at the
average exchange rate of US$1: A$1.481 and the British Pound
Sterling was converted to US dollars at the average exchange
rate of US$1: £0.8113. The Australian dollar compensation paid
during the year ended 31 December 2021 was converted to
US dollars at the average exchange rate of US$1: A$1.332 and
the British Pound Sterling was converted to US dollars at the
average exchange rate of US$1: £0.7270.
47
Financial Report RESOLUTE MINING LIMITED 2022 ANNUAL REPORT Financial Report
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R emuneration Report
3. REMUNERATION POLICY AND OUTCOMES
3a. Key Management Personnel
The Remuneration Report details the remuneration arrangements for KMP who are defined as those persons having authority
and responsibility for planning, directing and controlling the major activities of the Company and the Group, including any Director
(whether Executive or otherwise) of the parent company.
For the purposes of this report, the term “Executive” includes the Chief Executive Officer (CEO) and other select Executives of the
Company and the Group.
Directors
Executives
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Chief Operating Officer
(appointed effective
25 August 2022)
Chief Financial Officer
General Counsel and
Company Secretary
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Non-Executive Director
(Non-Executive Chairman)
EXECUTIVE
G. Montgomery
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Managing Director and
Chief Executive Officer
(appointed effective 23 May 2022,
Chief Executive Officer from
19 April 2022 until 22 May 2022,
and Chief Operating Officer from
1 January 2022 until 18 April 2022)
EXECUTIVE
D. Warden
Managing Director and
Chief Executive Officer
(until 18 April 2022)
EXECUTIVE
R. Steenhof
Non-Executive Director
Non-Executive Director
Non-Executive Director
Non-Executive Director
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DIRECTOR
M. Botha
DIRECTOR
T. Holohan
DIRECTOR
DIRECTOR
S. Gale
DIRECTOR
DIRECTOR
S. Jackson
DIRECTOR
S. Shugg
DIRECTOR
M. Potts
DIRECTOR
DIRECTOR
A. Reynolds
48
RESOLUTE MINING LIMITED 2022 ANNUAL REPORT
DIRECTORS’ REPORT
R emuneration Report
3b. Remuneration Policy
The Board recognises that the performance of the Company
depends upon the quality of its Executives. To achieve its
financial and operating objectives while operating in Africa,
the Company must attract, motivate and retain highly skilled
Directors and Executives. The Remuneration Committee
is tasked with the responsibility to monitor and review the
remuneration framework and provide recommendations
to the Board.
As part of the continual review process, the Remuneration
Committee has from time to time engaged external consultants
regarding structural changes to the remuneration framework.
The Company embodies the following principles in its
remuneration framework:
• Provides competitive rewards to attract high calibre
Executives
• Structures remuneration at a level that reflects the
Executive’s duties and accountabilities and is competitive
within Australia and other operating jurisdictions
• Benchmarks remuneration against appropriate groups
• Aligns Executive incentive rewards with the creation
of value for Shareholders
• Supports achievements consistent with the World Gold
Council’s Responsible Gold Mining Principles.
Pay equity is an important consideration in the effective
management of Resolute’s remuneration framework. Pay equity
analysis is conducted twice a year to ensure fairness and
consistency in remuneration practices across the Group and
to, in part, enable the achievement of the Company’s diversity
and inclusion objectives. To ensure like-for-like comparisons,
analysis is conducted according to level of work and operational
/ technical vs support function classifications, and this shows
that there is no material gender pay gap. It does however reveal
that women are underrepresented in senior leadership roles and
technical/operational roles and also make up the majority of the
lower levels of work, which is something that Resolute senior
management is addressing through targeted initiatives.
It is the Remuneration Committee’s policy that employment
contracts are entered into with the CEO and Executives.
Details of these contracts are outlined later in this report.
In accordance with good governance, the structure of NED
and Executive remuneration is separate and distinct.
Our Purpose
We are a trusted and responsible gold miner, driven by excellence to create value
for shareholders and the communities in which we operate.
The Company’s remuneration framework aims to incentivise for operational, financial and sustainability performance.
Specifically, we focus on ensuring the health, safety and wellbeing of our people at all times,
growth in gold production, managing cost, and improving operating cash-flows.
Remuneration Objectives
Competitive Remuneration
Provide rewards to attract, motivate and
retain highly skilled Executives.
The Company aims to attract talent, and reward
Executives with a level and mix of remuneration
commensurate with their position and responsibilities
within the Company and to ensure total remuneration
is competitive by market standards.
Shareholder Alignment
Align Executive incentive rewards with the
creation of value for Shareholders.
Resolute’s goal is to maintain its status as a unique and
highly attractive investment for Shareholders, with focus on
sustainable value creation. The remuneration framework serves
to ensure sustainable growth, a healthy balance sheet
and share price appreciation.
49
Financial Report RESOLUTE MINING LIMITED 2022 ANNUAL REPORT Financial Report
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R emuneration Report
3c. Remuneration Framework
The Executive remuneration framework consists of Fixed Annual Remuneration (FAR), STI and LTI incentives as outlined in the table
below:
Purpose
Link to Performance
t
n
e
n
o
p
m
o
C
n
o
i
t
a
r
e
n
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m
e
R
FAR
The level of FAR is set to provide a base level
of remuneration which is both appropriate to
the position and is competitive in the market.
STI
LTI
The objective of the annual “at risk” STI
is to generate greater alignment between
performance and remuneration levels to drive
operational excellence.
The objective of the LTI is to reward Senior
Leadership in a manner which aligns a
significant portion of remuneration with the
creation of Shareholder wealth.
Company and individual performance are considered as part of
the annual remuneration review. While market and sector peer
benchmarking is conducted regularly to ensure the FAR remains
competitive, the levels of FAR for the Managing Director and CEO
and other Executives are set primarily with regard to their respon-
sibilities and performance, talent, skills and experience, taking into
account the size, complexity, scope of operations and structure of
Resolute’s business.
Internal performance measures including sustainability, production
and costs which represent key business drivers are considered and
assessed to determine annual outcomes.
Vesting of awards is dependent upon an external measure of TSR
performance against a peer group.
Overall remuneration level and mix
How is overall remuneration
and mix determined?
Remuneration levels are considered annually through a review that considers comparative
market data, the performance of the Company and individual, and the broader economic
environment.
The Company aims to reward Executives with a level and mix (proportion of fixed, short-
term incentives and long-term incentives) of remuneration appropriate to their position,
responsibilities and performance within the Company and that which is aligned with
targeted market comparators.
In 2022, remuneration benchmarking was undertaken with reference to industry peers
(see LTI comparator groups listed below) for the TSR performance benchmarking. From
time to time, depending on availability and reliability of data, other benchmarking data
sources may be used. The Company’s policy is to position FAR around the median of
direct industry peers.
The chart below summarises the Managing Director and CEO’s and other Executives’
remuneration mix for FAR, STI and LTI. The current pay mix is considered appropriate
for Resolute based on the Company’s current phase of growth.
Remuneration Mix
Other Executives
47%
23%
30%
Managing Director/CEO
40%
20%
40%
0%
20%
40%
60%
80%
100%
FAR %
STIP %
LTIP %
To achieve maximum remuneration opportunity (equivalent to stretch targets being
achieved), Executives are required to significantly perform above and beyond normal
expectations. If achieved, the outcome is anticipated to result in a substantial improvement
in key strategic outcomes, operational or financial results, and/or the overall performance
of the Company.
While the Company does not have a formal share ownership policy for Executives,
all KMP are encouraged to hold shares in the Company and are incentivised to
accumulate equity through participation in the LTI Program.
50
RESOLUTE MINING LIMITED 2022 ANNUAL REPORT
DIRECTORS’ REPORT
R emuneration Report
3c. Remuneration Framework (continued)
Fixed annual remuneration
What is included in FAR?
For Executives in Australia, FAR includes base salary and superannuation contributions.
For the Managing Director and CEO and Executives in the UK, FAR includes base salary.
How is FAR reviewed and approved?
FAR is reviewed annually by the Remuneration Committee following consideration of
Executive performance, industry benchmarking and macro-economic indicators.
FAR increases were made as follows:
Name
Terry Holohan(i)
2021 FAR
£
308,000
2022 FAR
£
400,000
Increase
%
30%
(i) The increase in FAR was to reflect the change in Mr T. Holohan’s position to Managing Director and CEO.
Short Term Incentive
What is the value of the STI award
maximum opportunity?
The Managing Director and CEO and Executives have a maximum opportunity (if all the
Stretch performance hurdles are met for each KPI and individual performance is achieved
at a Stretch level) of 112.5% of FAR. A target STI opportunity of 50% of FAR aligns with
industry benchmarking.
What are the performance
criteria and how do they align
with business performance?
The STI payable is based on performance against corporate and individual key
performance indicators (KPIs) set at the beginning of the performance period.
KPIs require the achievement of strategic, operational or financial measures and are linked
to the drivers of business performance.
Corporate KPIs
Personal KPIs
Sustainability
Demonstrated improvement from the
prior year in Group Sustainability
performance / systems in accordance
with the Responsible Gold Mining
Principles (10%).
Operational
The achievement of defined Targets
relative to budget relating to:
• operating cash flow (30%)
• gold poured (30%)
• cost per tonne milled (30%).
The targets with regard to the STI outcomes
are documented below (refer to section
3d Executive Remuneration Outcomes).
A set of personal performance metrics
designed to drive optimum operational
performance as specifically related to
each Executive’s portfolio.
The personal metrics are set annually
and are directly linked to the Resolute
strategic plan which drives each
Executive’s annual business plan.
Personal performance acts as a positive
or negative multiplier to the outcome of
the Corporate KPIs. See below for an
example of how the Managing Director
and CEO’s STI award is calculated.
These measures have been selected as they can be reliably measured, are key drivers of
value for Shareholders and encourage behaviours in line with the Company’s Values and
risk appetite.
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Financial Report RESOLUTE MINING LIMITED 2022 ANNUAL REPORT
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3c. Remuneration Framework (continued)
Short Term Incentive
How are STI awards determined?
For each KPI there are defined “Threshold”, “Target” and “Stretch” measures which are
capable of objective assessment.
Corporate KPIs are assessed as follows on an individual KPI basis:
• Below Threshold = $nil payment
• Threshold performance = 25% of KPI opportunity
• Target Performance = 100% of KPI opportunity
• Stretch performance = 150% of KPI opportunity.
Pro-rata payment applies on a straight-line basis between “Threshold” and “Target”
and between “Target” to “Stretch” performance.
Personal KPIs are assessed as follows:
• Below Threshold = $nil payment
• Threshold performance = 50% of total Corporate KPI outcome
• Target Performance = 100% of total Corporate KPI outcome
• Stretch performance = 150% of total Corporate KPI outcome.
Pro-rata payment applies on a straight-line basis between “Threshold” and “Target” and
between “Target” to “Stretch” Performance. Target performance represents challenging
levels of performance. Stretch performance requires significant performance above
and beyond normal expectations and if achieved is anticipated to result in a substantial
improvement in key strategic outcomes, operational or financial results, and/or the overall
performance of the Company.
As a minimum, a threshold performance outcome must be achieved for both the
Corporate KPIs and the Personal KPIs before a STI award is triggered.
Is the STI award subject to
deferral provisions?
The actual STI payment is made approximately three months after the completion of the
performance period.
The Remuneration Committee has determined that a formal deferral policy is not
appropriate at this time for KMP, given that a significant portion of the Managing Director
and CEO’s and other Executives’ total remuneration opportunity is in the form of equity
and subject to risk. In addition, the Managing Director and CEO and other Executives have
been granted a significant number of Performance Rights as part of the Resolute LTIP,
ensuring close alignment with Shareholders.
Is there a malus or clawback policy?
While there is no formal malus/clawback policy, the Board has ultimate discretion to
adjust the STI outcomes upwards or downwards (including to zero), in exceptional
circumstances, where the STI generated outcomes are inconsistent with the Company’s
performance or resulted in misalignment with Shareholders (e.g. fatality, financial
misstatement, misconduct, reputational damage, etc.).
What happens to STI awards if there
is a termination of employment?
Subject to overarching Board discretion, to be eligible for any payment under the STI,
the participant must be employed by the Company at the end of the relevant performance
period in which the STI is tested, unless a pro-rata payment is expressly agreed in
writing with the Managing Director prior to termination.
What happens to STI awards if there
is a change of control event?
On the occurrence of a change of control event, the Board will determine, in its sole and
absolute discretion, the manner in which STI awards will be dealt with.
52
Financial ReportRESOLUTE MINING LIMITED 2022 ANNUAL REPORT
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R emuneration Report
3c. Remuneration Framework (continued)
Long Term Incentive
How often are LTI grants made and
what is the maximum LTI quantum?
At the Board’s discretion, Executives receive an annual grant of Performance Rights and
the LTI forms a key component of the Executive’s Total Annual Remuneration.
The LTI face value that Executives are entitled to receive is set at a maximum percentage
of their FAR, being 100% of FAR for the Managing Director and CEO and 65% of FAR for
the other Executives.
What are the performance criteria
for the LTI?
Performance conditions have been selected that reward Executives for creating
Shareholder value as determined via the change in the Company’s share price (Relative
Total Shareholder Return) over a three-year period.
Performance Rights will vest subject to meeting service and performance conditions as
defined below:
Relative Total Shareholder Return (“rTSR”) – 100%
The rTSR measures the combined return from change in share price and dividends,
against 12 ASX or TSX listed gold production companies of a similar size which for
2022 were:
• Centamin Plc
• Fortuna Silver Mines
• Galliano Gold Inc
• Perseus Mining Limited
• OceanaGold Corporation
• Hummingbird Resources Plc
• Ramelius Resources Ltd
• Regis Resources Ltd
• Orezone
• Shanta Gold Ltd
• St Barbara Ltd
• West African Resources Ltd
Resolute’s rTSR is calculated to determine what percentile in the peer group it relates to
and this percentile determines how many Performance Rights vest.
What is the objective of the
performance hurdle and target?
One of Resolute’s goals is to manage achievements against comparators and outperform
our peers to ensure sustainable growth to our share price above the market.
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Financial Report RESOLUTE MINING LIMITED 2022 ANNUAL REPORT
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R emuneration Report
3c. Remuneration Framework (continued)
Long Term Incentive
What is the rationale for the
chosen metrics?
The rTSR metric provides the closest alignment between the Company’s performance and
Shareholders’ interests and reflects the creation of Shareholder value above peers.
Unless the Board determines otherwise, none of the Performance Rights will vest unless:
• the percentile ranking of Resolute’s TSR for the Vesting Period in relation to the
comparative TSRs of the peer group companies for the Vesting Period is at or above the
50th percentile; and
• Resolute’s TSR for the Vesting Period is positive.
In addition, the Board may adjust vesting outcomes after consideration of year-on-year
improvement in sustainability performance / systems and cultural measures.
The Board reviews and considers the balance of metrics each year and rTSR is considered
the most relevant performance metric for KMP LTI purposes. For this reason, the Board
has allocated 100% of the KMP LTI vesting performance metric to this measure. The Board
expects to add other performance metrics over time.
How is the performance
period determined?
Grants under the LTI need to serve a number of different purposes:
• act as a key retention tool; and
• focus on future Shareholder value generation.
Therefore, LTI awards have a three-year performance period and provide a structure that is
focused on long term sustainable Shareholder value generation.
How is vesting determined?
Relative TSR performance
Performance Vesting Outcomes
Less than 50th percentile
At the 50th percentile
Between 50th and 75th percentile
0% vesting
50% vesting
Between 50% and 100% vesting,
calculated on a linear basis
75th percentile and above
100% vesting
Is there an opportunity to re-test
the performance hurdles?
Performance is tested only once, at the end of the performance period. No re-testing
applies to unvested awards.
Do dividends vest on
unvested awards?
Is there a malus and
clawback policy?
There are no dividends attached to unvested Performance Rights.
While there is no formal malus/clawback policy, the Board has ultimate discretion to adjust
LTI outcomes upwards or downwards (including to zero), in exceptional circumstances,
where the LTIP generates outcomes inconsistent with the Company’s performance or
resulted in misalignment with Shareholders (e.g. financial misstatement, misconduct,
reputational damage, etc.).
What happens to LTI awards if there
is a termination of employment?
Vested but unexercised Performance Rights remain valid unless Board discretion is
exercised in situations such as misconduct. Unvested Performance Rights will be forfeited
unless Board discretion is exercised in circumstances such as death,
retirement due to ill health and redundancy.
What happens to LTI awards if there
is a change of control?
On the occurrence of a change of control event, the Board will determine, in its sole and
absolute discretion, the manner in which all unvested and vested rights will be dealt with.
54
Financial ReportRESOLUTE MINING LIMITED 2022 ANNUAL REPORT
DIRECTORS’ REPORT
R emuneration Report
3d. Remuneration Policy and Outcomes
Company Performance
The table below shows the performance of the Consolidated Entity over the last 5 periods:
31 December
2022
31 December
2021
31 December
2020
31 December
2019
Net (loss)/profit after tax
$'000
(34,665)
(367,471)
4,995
(78,824)
Basic (loss)/earnings per share
cents/share
Share price
Dividends
$A/share
cents/share
(2.85)
0.20
-
(28.92)
0.39
-
1.62
0.71
-
(8.30)
1.26
-
6 months
ended
31 December
2018
(3,752)
(0.30)
1.16
-
KMP remuneration disclosures
Table 1 below shows the remuneration expense recognised for each KMP for the year ended 31 December 2022. Table 2 below shows
the remuneration expense recognised for each KMP for the year ended 31 December 2021. The actual remuneration received by KMP
for the year is set out in Table 3. The actual remuneration includes equity grants where the KMP received control of the shares in the
year ended 31 December 2022. This differs from the remuneration disclosures in Table 1. For example, Table 1 discloses the value of
LTI grants which may or may not vest in future years, whereas Table 3 discloses the value of LTI grants from previous years which
have vested during the year.
Table 1 - Statutory Executive KMP remuneration for the year ended 31 December 2022
Short Term Benefits
Post
Employment
Benefits
Long Term
Benefits
Share
Based
Payments
Performance
Related
)
i
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$
T. Holohan(iii)
499,619
-
180,775
69,022
S. Gale(iv)
144,786
2,086
-
G. Montgomery(v)
91,678
-
64,650
-
-
52,118
18,941
37,558
D. Warden
331,222
6,258
136,207
67,503
29,896
R. Steenhof
186,383
6,258
80,516
-
18,574
44,662
-
127,850
974,047
6,534
(25,102)
(298,179)
(150,934)
-
16,975
16,697
-
9,772
9,425
38,068
64,042
231,954
661,875
18,166
336,019
Total
1,253,689
14,603
462,148
136,525
157,087
84,868
(5,905)
(50,053) 2,052,961
i
s
t
h
g
R
e
c
n
a
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r
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f
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P
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T
t
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%
32
-
44
30
29
i
s
t
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g
R
e
c
n
a
m
r
o
f
r
e
P
%
13
-
16
10
5
(i)
Non-monetary benefits include, where applicable, the cost to the Company of providing fringe benefits, the fringe benefits tax on those benefits and all other benefits
received by the Executive.
(ii) The STI for the year ended 31 December 2022 will be paid in cash in March 2023.
(iii) Mr T. Holohan was Chief Operating Officer from 1 January 2022 until 19 April 2022. On 19 April 2022, Mr T. Holohan was appointed Chief Executive Officer. On 23 May 2022,
Mr T. Holohan was appointed Managing Director and Chief Executive Officer.
(iv) Mr S. Gale ceased employment as Managing Director and Chief Executive Officer effective 19 April 2022.
(v) Mr G. Montgomery was appointed as Chief Operating Officer effective 25 August 2022.
(vi) This relates to a retention bonus for Mr T Holohan for remaining in employment up to 31 December 2021, and Mr D Warden for remaining in employment up to
31 December 2022. No other terms and conditions are associated with these payments.
(vii) The table above is presented in United States dollar currency. The remuneration for 2022 was converted at the average exchange rate of US$1:A$1.481 and an average
exchange rate of US$1:£0.8113. Mr T. Holohan is remunerated in £. Mr G. Montgomery is remunerated in USD and the other KMPs are remunerated in A$.
55
Financial Report RESOLUTE MINING LIMITED 2022 ANNUAL REPORT
DIRECTORS’ REPORT
R emuneration Report
3d. Remuneration Policy and Outcomes (continued)
Table 2 - Statutory Executive KMP remuneration for the year ended 31 December 2021
Short Term Benefits
Post
Employ-
ment
Benefits
Long
Term
Benefits
Share
Based
Payments
Performance
Related
)
i
(
s
t
i
f
e
n
e
B
y
r
a
t
e
n
o
M
n
o
N
$
n
o
i
t
a
r
e
n
u
m
e
R
e
s
a
B
$
)
i
i
(
e
v
i
t
n
e
c
n
I
m
r
e
T
t
r
o
h
S
$
)
v
i
(
s
t
n
e
m
y
a
P
r
e
h
t
O
$
e
s
n
e
p
x
E
e
v
a
e
L
l
a
u
n
n
A
$
n
o
i
t
a
u
n
n
a
r
e
p
u
S
$
e
s
n
e
p
x
E
e
v
a
e
L
e
c
i
v
r
e
S
g
n
o
L
$
i
s
t
h
g
R
e
c
n
a
m
r
o
f
r
e
P
$
l
a
t
o
T
$
S. Gale(iii)
492,825
6,963
106,748
202,787
46,795
18,777
16,782
336,847
1,228,524
T. Holohan(v)
250,828
-
61,398
-
29,694
23,418
-
42,147
407,485
D. Kelly(vi)
D. Warden(vii)
152,090
134,423
A. Stanton(viii)
155,204
R. Steenhof(ix)
74,591
3,482
47,753
75,106
11,460
10,459
5,780
133,101
439,231
2,321
22,307
4,062
2,901
-
21,966
-
-
-
10,795
8,279
3,691
9,070
190,886
12,379
11,498 (26,820)
(58,476)
97,847
9,364
8,336
4,263
-
121,423
Total
1,259,961
19,729
260,172
277,893
120,487
80,767
3,696 462,689 2,485,396
s
n
o
i
t
p
O
,
e
v
i
t
n
e
c
n
I
m
r
e
T
t
r
o
h
S
i
t
h
g
R
e
c
n
a
m
r
o
f
r
e
P
d
n
a
%
36
25
41
16
(60)
18
i
s
t
h
g
R
e
c
n
a
m
r
o
f
r
e
P
d
n
a
s
n
o
i
t
p
O
%
27
10
30
5
(60)
-
(i)
Non-monetary benefits include, where applicable, the cost to the Company of providing fringe benefits, the fringe benefits tax on those benefits and all other benefits received
by the Executive.
(ii) The STI for the year ended 31 December 2021 will be paid in cash in March 2022.
(iii) Mr S. Gale was appointed as Chief Executive Officer effective 14 May 2021. Mr S. Gale was Interim Chief Executive Officer from 1 January 2021 to 13 May 2021.
(iv) This relates to a retention bonus for Mr S Gale and Mr D Kelly and a one-off dual duties payment in recognition of Mr Gale’s dual roles as Chief Financial Officer and Interim Chief
Executive Officer from 19 October 2020 to 14 May 2021.
(v) Mr T. Holohan was appointed as Chief Operating Officer effective 17 May 2021.
(vi) Mr D. Kelly ceased employment as Chief Operating Officer on 16 May 2021. Mr D Kelly remains with the Company as a member of the Leadership Team.
(vii) Mr D. Warden was appointed as Chief Financial Officer effective 30 August 2021.
(viii) Ms A. Stanton ceased employment as General Counsel and Company Secretary effective 23 July 2021.
(ix) Mr R. Steenhof was appointed as Company Secretary effective 23 July 2021.
(x)
The table above is presented in United States dollar currency. The remuneration for 2021 was converted at the average exchange rate of US$1:A$1.332 and an average exchange
rate of US$1:£0.7270. Mr T. Holohan is remunerated in £. and the other KMPs are remunerated in A$.
56
Financial ReportRESOLUTE MINING LIMITED 2022 ANNUAL REPORT
DIRECTORS’ REPORT
R emuneration Report
3d. Remuneration Policy and Outcomes (continued)
The following table shows the actual remuneration value realised by the individual and includes fixed remuneration and any cash
incentives paid. We believe this information is helpful to assist shareholders in understanding the actual pay and benefits received
by KMPs from various components of their remuneration.
The following table is a voluntary disclosure and is not prepared in accordance with Australian Accounting Standards.
Table 3 - Actual KMP remuneration paid for the year ended 31 December 2022
Fixed Remuneration(i)
Other Payments(iii)
Short Term Incentives(ii)
$
490,429
229,716
166,426
370,018
200,984
1,457,572
$
69,022
81,004
-
-
-
150,026
$
-
95,942
-
20,049
19,330
135,320
T. Holohan(iv)
S. Gale(v)
G. Montgomery(vi)
D. Warden
R. Steenhof
Total
Total
$
559,451
406,662
166,426
390,067
220,313
1,742,918
(i) Fixed Remuneration includes cash salary, paid leave and superannuation.
(ii) Short Term Incentives relate to Short Term Incentives earned for the year ended 31 December 2021 paid in March 2022.
(iii) This relates to a retention bonus for Mr T Holohan and Mr S Gale for remaining in employment up to 31 December 2021. No other terms and conditions are associated
with these payments.
(iv) Mr T. Holohan was Chief Operating Officer from 1 January 2022 until 19 April 2022. On 19 April 2022, Mr T. Holohan was appointed Chief Executive Officer. On 23 May 2022,
Mr T. Holohan was appointed Managing Director and Chief Executive Officer.
(v) Mr S. Gale ceased employment as Managing Director and Chief Executive Officer effective 19 April 2022.
(vi) Mr G. Montgomery was appointed as Chief Operating Officer effective 25 August 2022.
(vii) The table above is presented in United States dollar currency. The remuneration for 2022 was converted at the average exchange rate of US$1:A$1.481 and an average
exchange rate of US$1:£0.8113. Mr T. Holohan is remunerated in £, Mr G. Montgomery is remunerated in USD and the other KMPs are remunerated in A$.
STI outcomes
Performance Measure
Performance Area
Weighting
Actual Performance
Outcome
Commentary
Company Operating Cash Flow ($166.631 million)
Cash Operating Cost Per Tonne Milled ($64.06)
Production Target (Gold Poured) (345,000oz)
Sustainability (YOY Improvement)
30%
30%
30%
10%
$105.407 million
Not Achieved
$72.51
353,069oz
Partially Achieved
Over Achieved
YOY Improvement
Achieved
57
Financial Report RESOLUTE MINING LIMITED 2022 ANNUAL REPORT
Financial Report
DIRECTORS’ REPORT
R emuneration Report
4. NON-EXECUTIVE DIRECTOR REMUNERATION
ARRANGEMENTS AND OUTCOMES
Objective
The Board seeks to set aggregate remuneration at a level which
provides the Company with the ability to attract and retain
Directors of the highest calibre, whilst incurring a cost which is
acceptable to Shareholders.
Structure
The Company’s constitution and the ASX Listing Rules specify
that the aggregate remuneration of NEDs shall be determined
from time to time by a general meeting. An amount not
exceeding the amount determined is then divided between
the Directors as agreed. The latest determination was at the
Annual General Meeting held on 29 November 2016 when
the Shareholders approved an aggregate remuneration of
A$1,000,000 per year.
The Chairman’s fee is A$180,000 and NED fees are A$100,000.
In addition, the Chair of the Audit and Risk Committee receives
a Committee Chair fee of A$15,000 and the Chair of the
Remuneration Committee receives a Committee Chair fee of
A$10,000. Members of Committees do not receive a separate fee.
The amount of aggregate remuneration sought to be approved
by Shareholders and the manner in which it is apportioned
amongst Directors is reviewed annually.
The Board considers fees paid to NEDs of comparable
companies when undertaking the annual review process.
Each NED receives a fee for being a Director of the Company.
The fee size is commensurate with the workload and
responsibilities undertaken. NEDs do not participate in any
incentive programs.
Position
Current Annual Fee (A$)
Chair of Board
Non-Executive Director
Audit and Risk Committee Chair
Remuneration Committee Chair
(1) Payable in addition to the annual NED fee.
Non-Executive Director remuneration for the year ended 31 December 2022
Short Term Benefits
Post Employment Benefits
Remuneration
$
Non-Monetary Benefits
$
Superannuation
$
M. Botha
M. Potts
S. Shugg
A. Reynolds
S. Jackson
Total
121,506
74,254
61,228
67,503
77,629
402,121
-
-
-
-
-
-
-
-
6,276
-
-
6,276
(i) The table above is presented in United States dollar currency. The total remuneration for 2022 was converted at the average exchange rate of US$1:A$1.481.
Non-Executive Director remuneration for the year ended 31 December 2021
Short Term Benefits
Post Employment Benefits
Remuneration
$
Non-Monetary Benefits
$
Superannuation
$
M. Botha
Y. Broughton
M. Potts
S. Shugg
P. Sullivan
A. Reynolds
S. Jackson
Total
135,192
71,977
82,617
68,434
28,206
43,812
14,395
444,633
-
-
-
-
3,088
-
-
3,088
-
-
-
6,672
-
-
-
6,672
(i) The table above is presented in United States dollar currency. The total remuneration for 2021 was converted at the average exchange rate of US$1:A$1.332.
58
$180,000
$100,000
$15,000(1)
$10,000(1)
Total
$
121,506
74,254
67,504
67,503
77,629
408,396
Total
$
135,192
71,977
82,617
75,106
31,294
43,812
14,395
454,393
RESOLUTE MINING LIMITED 2022 ANNUAL REPORT
DIRECTORS’ REPORT
R emuneration Report
5. ADDITIONAL DISCLOSURES
Executive Employment Contracts
Remuneration arrangements for KMP are formalised in employment agreements. The following table outlines the details of contracts
with key management personnel:
Name
Title
Term of
Agreement
Notice Period
by Executive
Notice
Period
by
Company
Termination Benefit
Terry Holohan(i)
Managing Director and Chief Executive Officer
Stuart Gale(ii)
Managing Director and Chief Executive Officer
Geoff Montgomery(iii) Chief Operating Officer
Doug Warden
Chief Financial Officer
Richard Steenhof
General Counsel and Company Secretary
Open
Open
Open
Open
Open
6 months
6 months Redundancy as per UK ERA(2)
6 months
6 months
Redundancy as per NES(1)
6 months
6 months Redundancy as per UK ERA(2)
6 months
6 months
Redundancy as per NES(1)
3 months
3 months
Redundancy as per NES(1)
(1) NES is the National Employment Standards.
(2) UK ERA is the UK Employment Rights Act.
(i) Appointed effective 23 May 2022.
(ii) Until 18 April 2022.
(iii) Appointed effective 25 August 2022.
No options were held by KMP during the year.
Details of Performance Rights holdings of KMP are as follows:
Granted during the year as compensation
r
a
e
y
e
h
t
f
o
t
r
a
t
s
e
h
t
t
a
e
c
n
a
a
B
l
r
e
b
m
u
N
e
t
a
d
e
u
s
s
I
e
c
n
a
m
r
o
f
r
e
P
f
o
e
u
a
v
r
i
a
F
l
l
a
t
o
T
e
t
a
d
t
n
a
r
g
t
a
s
t
h
g
R
i
)
s
r
a
e
y
(
d
o
i
r
e
p
g
n
i
t
s
e
V
e
c
n
a
m
r
o
f
r
e
P
f
o
e
u
a
v
r
i
a
F
l
e
t
a
d
t
n
a
r
g
t
a
s
t
h
g
R
i
A$
A$
e
t
a
d
g
n
i
t
s
e
V
i
s
t
h
g
R
e
c
n
a
m
r
o
f
r
e
P
f
o
y
r
i
p
x
E
e
c
n
a
m
r
o
f
r
e
P
f
o
e
c
i
r
p
e
s
i
c
r
e
x
E
r
a
e
y
e
h
t
g
n
i
r
u
d
d
e
t
n
a
r
g
s
t
h
g
R
i
A$
r
a
e
y
e
h
t
f
o
d
n
e
e
h
t
t
a
e
c
n
a
a
B
l
r
a
e
y
e
h
t
g
n
i
r
u
d
d
e
s
p
a
L
r
a
e
y
e
h
t
g
n
i
r
u
d
d
e
t
s
e
V
Directors
T. Holohan
443,716 1,958,147 28 June 2022
0.19
366,173
3 31 Dec 2024 1 Jan 2029
nil
-
S. Gale
2,544,235
-
-
-
-
-
-
-
-
(2,544,235)
Other key management personnel
G. Montgomery(i)
211,276
486,674 28 June 2022
D. Warden
R. Steenhof
264,171
940,789 28 June 2022
-
431,738 28 June 2022
0.19
0.19
0.19
91,008
3 31 Dec 2024 1 Jan 2029
175,928
3 31 Dec 2024 1 Jan 2029
80,735
3 31 Dec 2024 1 Jan 2029
nil
nil
nil
-
-
-
-
-
-
-
-
2,401,863
-
697,950
1,204,960
431,738
(i) These were the number of Performance Rights held by Mr G. Montgomery when he was appointed as Chief Operating Officer on 24 August 2022.
(ii)
Performance Rights vest in accordance with the Resolute Mining Limited Remuneration Policy and Equity Incentive Plan which outline the key performance indicators that need to be
satisfied. The percentage of Performance Rights granted during the year that also vested during the year is nil.
59
Financial Report RESOLUTE MINING LIMITED 2022 ANNUAL REPORT
DIRECTORS’ REPORT
R emuneration Report
5. Additional Disclosures (continued)
Details of shareholdings of KMP are as follows:
Received during
the year on the
vesting of
Performance
Rights
Balance at the
start of the year
Purchased
during the year
Other changes
during the year
Shares sold
on market
during the year
Balance at the
end of the year
Directors
M. Botha
T. Holohan
S. Gale
M. Potts
S. Shugg
A. Reynolds
S. Jackson
195,455
-
-
123,541
27,273
50,000
-
Other key management personnel
G. Montgomery
D. Warden
R. Steenhof
-
-
-
-
-
-
-
-
-
-
-
-
-
40,950
-
-
111,298
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
236,405
-
-
234,839
27,273
50,000
-
-
-
-
Every Director is encouraged to hold shares in the Company. The Board considered a share ownership requirement policy for
Directors, however, is not proposing to introduce a formal requirement due to the current tenure of Directors and to ensure that
diversity is one of the priorities without imposing limitations on any potential candidate. The Board will continue reviewing this policy
on an ongoing basis to ensure it meets the requirements of the Company and its stakeholders.
6. LOANS TO KEY MANAGEMENT PERSONNEL
AND THEIR RELATED PARTIES
There were no loans to KMP during the year ended 31 December 2022. This is the end of the audited information.
This is the end of the remuneration report.
7. OTHER INFOMATION
Performance Rights
Outstanding Performance Rights at the date of this report are as follows:
Vesting date
Exercise price
Number on issue
30/06/2021
31/12/2021
31/12/2022
31/12/2023
31/12/2024
-
-
-
-
-
13,550
73,377
1,058,144
2,537,954
7,233,481
10,916,506
Grant date
26/10/2018
21/05/2019
21/05/2020
14/07/2021
22/06/2022
60
Financial ReportRESOLUTE MINING LIMITED 2022 ANNUAL REPORT DIRECTORS’ REPORT
Indemnification and Insurance of Directors and Officers
Resolute maintains an insurance policy for its Directors and Officers against certain liabilities arising as a result of work performed
in the capacity as Directors and Officers. The Company has paid an insurance premium for the policy. The contract of insurance
prohibits disclosure of the amount of the premium and the nature of the liabilities insured.
Indemnification of Auditors
To the extent permitted by law, the Company has agreed to indemnify its auditors, Ernst & Young, as part of the terms of its audit
engagement agreement against claims by third parties arising from the audit (for an unspecified amount). No payment has been
made to indemnify Ernst & Young during or since the financial year.
Auditor Independence
Refer to the Auditor’s Independence Declaration to the Directors of Resolute Mining Limited.
Directors’ Meetings
The number of meetings of Directors (including meetings of committees of Directors) held during the year and the number of
meetings attended by each Director were as follows:
Board
Audit and Risk
Remuneration
Nomination
Sustainability
M. Botha
T. Holohan(i)
S. Gale (ceased employment 18 April)
M. Potts
S. Shugg
A. Reynolds
S. Jackson
Number of meetings held
13
9
3
13
13
13
13
13
4
n/a
n/a
4
4
4
4
4
3
n/a
n/a
3
2
3
3
3
2
n/a
n/a
2
2
2
2
2
n/a
2
1
3
3
3
n/a
3
(i) Mr T. Holohan was appointed Managing Director and Chief Executive Officer, effective 23 May 2022.
The details of the functions of the other committees of the Board are presented in the Corporate Governance Statement.
Non-Audit Services
Non-audit services have been provided by the entity’s auditor, Ernst & Young for the year ended 31 December 2022 for $17,045 (year ended
31 December 2021: $nil).
Signed in accordance with a resolution of the Directors.
Martin Botha
Chairman
Perth, Western Australia
29 March 2023
61
Financial Report RESOLUTE MINING LIMITED 2022 ANNUAL REPORT Ernst & Young
11 Mounts Bay Road
Perth WA 6000 Australia
GPO Box M939 Perth WA 6843
Tel: +61 8 9429 2222
Fax: +61 8 9429 2436
ey.com/au
Auditor’s independence declaration to the directors of Resolute Mining
Limited
As lead auditor for the audit of the financial report of Resolute Mining Limited for the financial year
ended 31 December 2022, I declare to the best of my knowledge and belief, there have been:
a.
b.
c.
No contraventions of the auditor independence requirements of the Corporations Act 2001 in
relation to the audit;
No contraventions of any applicable code of professional conduct in relation to the audit; and
No non-audit services provided that contravene any applicable code of professional conduct in
relation to the audit.
This declaration is in respect of Resolute Mining Limited and the entities it controlled during the
financial year.
Ernst & Young
Philip Teale
Partner
29 March 2023
62
A member firm of Ernst & Young Global Limited
Liability limited by a scheme approved under Professional Standards Legislation
Financial ReportRESOLUTE MINING LIMITED 2022 ANNUAL REPORT
CONTENTS
About this Report
Consolidated Statement of Comprehensive Income
Consolidated Statement of Financial Position
Consolidated Statement of Changes in Equity
Consolidated Cash Flow Statement
Notes to the Financial Statements
Earnings for the year
A
A.1 Segment revenues and expenses
A.2 Dividends paid or proposed
A.3 Loss per share
A.4 Taxes
B Production and growth assets
B.1 Mine properties and property, plant and equipment
B.2 Exploration and evaluation assets
B.3
Impairment of non current assets
B.4 Segment expenditure, assets and liabilities
C Cash, debt and capital
C.1 Cash
C.2
Interest bearing liabilities
C.3 Financing facilities
C.4 Contributed equity
C.5 Other reserves
D Other assets and liabilities
D.1 Receivables
D.2
Inventories
D.3 Other financial assets and liabilities
D.4 Payables
D.5 Provisions
D.6 Leases
D.7 Derivative financial liabilities
D.8 Financial instruments
E Other items
E.1 Promissory notes receivable and contingent
consideration receivable
E.2 Contingent liabilities
E.3 Commitments
E.4 Auditor remuneration
E.5 Subsidiaries and non-controlling interests
E.6 Subsequent events
E.7 Related party disclosures
E.8 Parent entity information
E.9 Employee benefits and share-based payments
E.10 Restatement of comparatiive information
E.11 Other accounting policies
Directors’ Declaration
Independent Auditor’s Report
Shareholder Information
64
66
68
69
70
7 1
72
74
74
75
78
78
80
8 1
83
84
84
86
87
88
88
90
90
9 1
92
92
93
95
97
98
99
99
100
100
1 0 1
101
102
102
103
103
107
108
109
110
118
Financial Report
RESOLUTE MINING LIMITED 2022 ANNUAL REPORT
63
RESOLUTE MINING LIMITED 2022 ANNUAL REPORT
Financial Report
64
64
RESOLUTE MINING LIMITED 2022 ANNUAL REPORT
ABOUT THIS REPORT
The Financial Report of Resolute Mining Limited and its
controlled entities (“Resolute”, “consolidated entity” or the
“Group”) for the year ended 31 December 2022 was authorised
for issue on 29 March 2023 in accordance with a resolution of
the Directors.
Resolute Mining Limited (the parent) is a for profit company
limited by shares incorporated and domiciled in Australia
whose shares are publicly traded on the Australian Securities
Exchange and the London Stock Exchange. The nature of the
operations and principal activities of the Group are described
in the Directors’ Report and in the segment information in Note
A.1. Information on the Group’s structure is provided in Note E.5.
Statement of Compliance
This general purpose Financial Report has been prepared
in accordance with Australian Accounting Standards, other
authoritative pronouncements of the Australian Accounting
Board and the Corporations Act 2001 (Cth). The accounting
policies are consistent with those disclosed in the 31 December
2021 Financial Report, except for the impact of all new or
amended Standards and Interpretations as detailed in Note E.11.
The Financial Report includes financial information for Resolute
as an individual entity and the consolidated entity consisting of
Resolute and its subsidiaries (“the Group”). Where appropriate,
comparative information has been reclassified to align to
changes in presentation in the current period to reflect more
reliable and relevant information.
Basis of Preparation
These financial statements have been prepared under the
historical cost convention, as modified by the revaluation of
certain financial assets and liabilities at fair value.
The Financial Report comprises of the financial statements of
the Group and its subsidiaries as at 31 December each year.
Subsidiaries are fully consolidated from the date on which
control is obtained by the Group and cease to be consolidated
from the date at which control is transferred out of the Group.
Profit or loss and each component of Other Comprehensive
Income (OCI) are attributed to the equity holders of the parent
of the Group and to the non-controlling interests, even if this
results in the non-controlling interests having a deficit balance.
When necessary, adjustments are made to the financial
statements of subsidiaries to bring their accounting policies
into line with the Group’s accounting policies. All intra-group
assets and liabilities, equity, income, expenses and cash flows
relating to transactions between members of the Group are
eliminated in full on consolidation. Interests in associates are
equity accounted and are not part of the consolidated Group.
Restatement of comparative information
During 2022, the Group identified information that resulted
in a restatement to the prior periods. The impact on
previously reported amounts is summarised in Note E.10,
with the restatement only affecting amounts presented in the
Consolidated Statement of Financial Position.
Rounding of Amounts
The Financial Report has been prepared in United States
dollars and all values are rounded to the nearest thousand
dollars ($’000) unless otherwise stated.
Financial ReportRESOLUTE MINING LIMITED 2022 ANNUAL REPORT Currency
Items in the financial statements of each of the Group’s
entities are measured in their respective currencies. Resolute’s
functional currency is Australian dollars (A$) and presentation
currency is United States dollars ($).
Transactions in foreign currencies are initially recorded by the
Group’s entities at their respective functional currency spot
rates at the date the transaction first qualifies for recognition.
Monetary assets and liabilities denominated in foreign
currencies are translated at the functional currency spot rates
of exchange at the reporting date. Differences arising on
settlement or translation of monetary items are recognised
in the profit and loss with the exception of monetary items
classified as net investment in a foreign operation. These are
recognised in OCI until the net investment is disposed of, at
which time, the cumulative amount is reclassified to profit
or loss. Tax charges and credits attributable to exchange
differences on those monetary items are also recorded in OCI.
Non-monetary items that are measured in terms of historical
cost in a foreign currency are translated using the exchange
rates at the dates of the initial transactions. Non-monetary items
measured at fair value in a foreign currency are translated using
the exchange rates at the date when the fair value is determined.
The gain or loss arising on translation of non-monetary items
measured at fair value is treated in line with the recognition
of the gain or loss on the change in fair value of the item (i.e.
translation differences on items whose fair value gain or loss is
recognised in OCI or profit or loss are also recognised in OCI
or profit or loss, respectively).
The results and financial position of all the Group entities
(none of which has the currency of a hyperinflationary
economy) that have a functional currency different from the
presentation currency are translated into the presentation
currency as follows:
• Assets and liabilities for each consolidated statement of
financial position presented are translated at the closing
rate at the date of that consolidated statement of financial
position.
• Income and expenses for each consolidated statement of
comprehensive income are translated at average exchange
rates (unless this is not a reasonable approximation of the
cumulative effect of the rates prevailing on the transaction
dates, in which case income and expenses are translated at
the dates of the transactions).
• All resulting exchange differences are recognised as a
separate component of equity.
On consolidation, exchange differences arising from the
translation of any net investment in foreign entities, and of
borrowings and other currency instruments that form part
of a net investment in foreign operation designated as hedges
of such investments, are taken to shareholders’ equity. When a
foreign operation is sold or borrowings repaid, a proportionate
share of such exchange differences are recognised in the
consolidated statement of comprehensive income as part of the
gain or loss on sale.
Financial and Capital Risk Management
The Group’s activities expose it to a variety of financial
risks: market risk (including diesel fuel price risk, currency
risk and interest rate risk), credit risk and liquidity risk.
The Group’s overall risk management program focuses on
the unpredictability of financial markets and seeks, where
considered appropriate, to minimise potential adverse effects on
the financial performance of the Group.
The Group may use derivative financial instruments to manage
certain risk exposures. Derivatives have been used exclusively
for managing financial risks, and not as trading or other
speculative instruments.
Risk management is carried out by the Group’s Audit and
Risk Committee under policies approved by the Board of
Directors. The Audit and Risk Committee identifies, evaluates
and manages financial risks as deemed appropriate. The Board
provides guidance for overall risk management, including
guidance on specific areas, such as mitigating commodity price,
foreign exchange, interest rate and credit risks, and derivative
financial instrument risk.
Foreign Exchange Risk Management
The Group receives proceeds on the sale of its gold and silver
production in United States dollar and Australian dollar and
a large portion of its costs at the Syama and Mako mines are
denominated in Euro, United States dollar and local currencies,
and as such movements within these currencies expose the
Group to exchange rate risk.
Foreign exchange risk arises from future commercial
transactions and recognised assets and liabilities denominated
in a currency that is not the entity’s functional currency. The
risk can be measured by performing a sensitivity analysis that
quantifies the impact of different assumed exchange rates on
the Group’s forecast cash flows.
The Group’s Audit and Risk Committee continues to manage
and monitor foreign exchange currency risk. At present, the
Group does not specifically hedge its exposure to foreign
currency exchange rate movements.
Diesel Price Risk Management
The Group is exposed to movements in the diesel fuel price.
The costs incurred purchasing diesel fuel for use in the Group’s
operations is significant. The Group’s Audit and Risk Committee
continues to manage and monitor diesel fuel price risk.
At present, the Group does not specifically hedge its exposure
to diesel fuel price movements.
The below risks arise in the normal course of the Group’s
business. Risk information can be found in the following
sections:
• Section C Capital risk, Interest rate risk, Liquidity risk,
Foreign currency risk
• Section D Credit risk, Foreign currency risk.
65
Financial Report RESOLUTE MINING LIMITED 2022 ANNUAL REPORT CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
for the year ended 31 December 2022
$’000
Note
2022
2021
Revenue from contracts with customers for gold and silver sales
Costs of production relating to gold sales
Gross profit before depreciation, amortisation and other operating costs
Depreciation and amortisation of mine assets
Other operating costs relating to gold sales
Gross profit from operations
Interest income
Other income
Exploration and business development
Impairment of exploration and evaluation assets
Impairment of mine properties and property, plant and equipment
Administration and other corporate expenses
Share based payments expense
Treasury - realised losses
Inventories net realisable value movements and obsolete consumables
Fair value movements and unrealised treasury transactions
Share of associates’ losses
Depreciation of non-mine site assets
Finance costs
Indirect tax expense
Loss before tax from operations
Tax expense
Loss for the year from operations
Loss attributable to:
Members of the parent
Non-controlling interest
A.1
A.1
A.1
A.1
A.1
A.1
A.1
A.1
A.1
A.1
A.1
A.1
A.1
A.1
A.1
A.1
A.1
A.1
651,129
549,242
(411,482)
(324,984)
239,647
224,258
(83,706)
(118,621)
(62,016)
(59,066)
93,925
46,571
5,513
4,549
5,141
3,248
(14,615)
(18,484)
-
-
(5,068)
(222,396)
(14,393)
(15,687)
(457)
(1,477)
(1,122)
(185)
(36,077)
(44,258)
(13,345)
(27,697)
(1,305)
(2,188)
(20,786)
(13,449)
(3,838)
(2,372)
(16,882)
(24,760)
(14,105)
(327,789)
A.1
(20,560)
(39,682)
(34,665)
(367,471)
(34,083)
(319,203)
E.6
(582)
(48,268)
(34,665)
(367,471)
The above consolidated statement of comprehensive income should be read in conjunction with the accompanying notes, with all
amounts presented in United States dollar currency.
66
Financial ReportRESOLUTE MINING LIMITED 2022 ANNUAL REPORT
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
for the year ended 31 December 2022 (CONTINUED)
$’000
Loss for the year (brought forward)
Other comprehensive (loss)/income
Items that may be reclassified subsequently to profit or loss
Exchange differences on translation of foreign operations:
- Members of the parent
Items that may not be reclassified subsequently to profit or loss
Exchange differences on translation of foreign operations:
- Non-controlling interest
Changes in the fair value/realisation of financial assets at fair value
through other comprehensive income, net of tax
Other comprehensive loss for the year, net of tax
Total comprehensive loss for the year
Total comprehensive (loss)/gain attributable to:
Members of the parent
Non-controlling interest
Total comprehensive loss for the year
Note
2022
2021
(34,665)
(367,471)
(18,167)
(16,106)
4,507
4,960
(717)
(12,981)
(14,377)
(24,127)
(49,042)
(391,598)
(52,967)
(348,290)
3,925
(43,308)
(49,042)
(391,598)
Loss per share for net loss attributable for continuing operations
to the ordinary equity holders of the parent:
Basic loss per share
Diluted loss per share
A.3
A.3
cents
(2.85)
(2.85)
cents
(28.92)
(28.92)
The above consolidated statement of comprehensive income should be read in conjunction with the accompanying notes, with all
amounts presented in United States dollar currency.
67
Financial Report RESOLUTE MINING LIMITED 2022 ANNUAL REPORT
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
for the year ended 31 December 2022
$’000
Current assets
Cash
Other financial assets – restricted cash
Receivables
Inventories
Financial assets at fair value through other comprehensive income
Prepayments and other assets
Asset sale receivable
Total current assets
Non current assets
Income tax asset
Inventories
Investments in associates
Promissory notes receivable
Contingent consideration receivable
Exploration and evaluation
Development
Property, plant and equipment
Right of use assets
Total non current assets
Total assets
Current liabilities
Payables
Financial derivative liabilities
Interest bearing liabilities
Provisions
Lease liabilities
Current tax liabilities
Total current liabilities
Non current liabilities
Interest bearing liabilities
Provisions
Deferred tax liabilities
Lease liabilities
Total non current liabilities
Total liabilities
Net assets
Equity attributable to equity holders of the parent
Contributed equity
Reserves
Accumulated losses
Total equity attributable to equity holders of the parent
Non-controlling interest
Total equity
Note
2022
2021
(Restated)(1)
C.1
D.3
D.1
D.2
D.3
E.10
D.2
E.1
E.1
B.2
B.1
B.1
D.6
D.4
D.7
C.2
D.5
D.6
C.2
D.5
A.4
D.6
C.4
E.5
80,873
1,406
48,793
146,430
-
11,141
-
67,607
9,443
27,812
156,589
20,828
12,868
56,495
288,643
351,642
10,545
42,434
-
40,015
13,636
3,211
222,395
234,461
13,453
580,150
868,793
63,700
1,546
95,634
100,377
3,373
19,107
11,303
53,918
1,365
40,207
14,524
2,909
264,491
229,164
7,708
625,589
977,231
91,542
-
92,726
57,165
2,991
7,137
283,737
251,561
29,482
71,544
-
12,536
113,562
397,299
471,494
223,979
73,424
1,591
8,086
307,080
558,641
418,590
882,731
(21,956)
(317,341)
777,021
(3,706)
(283,258)
543,434
490,057
(71,940)
471,494
(71,467)
418,590
The above consolidated statement of financial position should be read in conjunction with the accompanying notes, with all amounts
presented in United States dollar currency.
(1) Refer to restatement of comparative information Note E.10
68
Financial ReportRESOLUTE MINING LIMITED 2022 ANNUAL REPORT CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
for the year ended 31 December 2022
y
t
i
u
q
e
d
e
t
u
b
i
r
t
n
o
C
e
v
r
e
s
e
r
)
s
s
o
l
(
/
n
a
g
i
d
e
s
i
l
a
e
r
n
u
t
e
N
l
/
s
e
t
o
n
e
b
i
t
r
e
v
n
o
C
s
n
o
i
t
p
o
e
r
a
h
S
e
v
r
e
s
e
r
y
t
i
u
q
e
e
v
r
e
s
e
r
s
t
s
e
r
e
t
n
i
g
n
i
l
l
o
r
t
n
o
c
-
n
o
N
y
t
i
u
q
e
e
e
y
o
p
m
E
l
e
v
r
e
s
e
r
s
t
i
f
e
n
e
b
e
v
r
e
s
e
r
n
o
i
t
a
l
s
n
a
r
t
y
c
n
e
r
r
u
c
n
g
e
r
o
F
i
$’000
)
1
(
)
s
e
s
s
o
l
l
d
e
t
a
u
m
u
c
c
a
(
i
/
s
g
n
n
r
a
e
d
e
n
a
t
e
R
i
t
s
e
r
e
t
n
i
g
n
i
l
l
o
r
t
n
o
c
-
n
o
N
t
s
e
r
e
t
n
i
g
n
i
l
l
o
r
t
n
o
c
‐
n
o
N
l
a
s
o
p
s
i
d
f
o
l
e
a
s
r
o
f
d
e
h
p
u
o
r
g
l
At 1 January 2022
777,021
(8,631)
4,876
(724)
19,813 (19,040)
(283,258)
(71,467)
Loss for the year
Other comprehensive
(loss)/income, net of tax
Total comprehensive (loss)
/income for the year, net of tax
-
-
-
Shares issued (net of cost)
105,710
Dividends paid
Share based payments expense
-
-
-
(717)
(717)
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
634
-
(34,083)
(582)
(18,167)
-
4,507
(18,167)
(34,083)
3,925
-
-
-
-
-
-
-
(4,398)
-
At 31 December 2022
882,731
(9,348)
4,876
(724) 20,447
(37,207)
(317,341)
(71,940)
-
-
-
-
-
-
-
-
l
a
t
o
T
418,590
(34,665)
(14,377)
(49,042)
105,710
(4,398)
634
471,494
At 1 January 2021
777,021
4,350
4,876
(724)
18,607
(2,934)
35,945
(22,023)
(6,981)
808,137
Loss for the year
Other comprehensive
(loss)/income, net of tax
Total comprehensive loss
for the year, net of tax
Dividends paid
Share based payments expense
Disposal of assets held for sale
-
-
-
-
-
-
-
(12,981)
(12,981)
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
1,206
-
-
(319,203)
(47,929)
(339)
(367,471)
(16,106)
-
4,960
-
(24,127)
(16,106)
(319,203)
(42,969)
(339)
(391,598)
-
-
-
-
-
-
(6,475)
-
-
-
-
7,320
(6,475)
1,206
7,320
At 31 December 2021
777,021
(8,631)
4,876
(724)
19,813 (19,040) (283,258)
(71,467)
-
418,590
The above consolidated statement of changes in equity should be read in conjunction with the accompanying notes, with all amounts
presented in United States dollar currency.
(1) Refer to restatement of comparative information E.10
69
Financial Report RESOLUTE MINING LIMITED 2022 ANNUAL REPORT
CONSOLIDATED CASH FLOW STATEMENT
for the year ended 31 December 2022
$’000
Note
2022
2021
Cash flows from operating activities
Receipts from customers
Payments to suppliers, employees and others
Exploration expenditure
Interest paid
Interest received
Indirect tax received
Indirect tax paid
Income tax paid
650,591
549,013
(524,706)
(451,554)
(10,745)
(16,619)
214
1,774
(13,643)
(14,874)
-
-
(1,610)
(14,853)
(7,994)
(3,531)
Net cash flows from operating activities
C.1
90,905
50,558
Cash flows from/(used in) investing activities
Payments for property, plant and equipment
Payments for development activities
Payments for evaluation activities
Proceeds from sale of assets
Payments relating to assets held for sale
Proceeds from sale of investment in associates
Proceeds from sale of financial assets at fair value through other comprehensive income
Payments for sale of financial assets at fair value through other comprehensive income
Other investing activities
(35,811)
(30,387)
(27,602)
(22,908)
(4,372)
60,000
-
4,534
19,148
-
(725)
(2,926)
30,740
(5,445)
-
2,289
(1,179)
(697)
Net cash flows from/(used in) investing activities
15,172
(30,513)
Cash flows used in financing activities
Repayment of borrowings
Proceeds from finance facilities
Proceeds from issuing ordinary shares
Payments for share issue costs
Dividends paid to non-controlling interest
Repayment of principal portion of lease liability
Net cash flows used in financing activities
Net increase/(decrease) in cash and cash equivalents
Cash and cash equivalents at the beginning of the year
Exchange rate adjustment
Cash and cash equivalents at the end of the year
Cash and cash equivalents comprise the following:
Cash at bank and on hand
Bank overdraft
Cash and cash equivalents at the end of the year
(195,000)
(79,811)
-
50,000
110,289
(4,579)
(5,089)
(3,458)
-
-
(5,858)
(13,823)
(97,837)
(49,492)
8,240
(29,447)
25,237
1,982
55,226
(542)
35,459
25,237
C.1
C.1
80,873
67,607
(45,414)
(42,370)
35,459
25,237
The above consolidated cash flow statement should be read in conjunction with the accompanying notes, with all amounts presented in
United States dollar currency.
70
Financial ReportRESOLUTE MINING LIMITED 2022 ANNUAL REPORT NOTES TO THE
FINANCIAL STATEMENTS
A: Earnings for the year
IN THIS SECTION
Results and the performance of the Group, with segmental
information highlighting the core areas of the Group’s operations.
It also includes details about the Group’s tax position.
A.1 Segment revenues and expenses
Operating segment information
The Group has identified two operating segments based on
the internal reports that are reviewed and used by the Chief
Executive Officer and his executive team (the Chief Operating
Decision Maker) in assessing performance and in determining
the allocation of resources.
Operating segments are identified by management as being
operating mine sites and are managed separately and operate in
different regulatory and economic environments.
Performance is measured based on gold poured and cost of
production per ounce of gold poured. The accounting policies
used by the Group in reporting segments are the same as those
used in the preparation of financial statements.
Certain items and associated assets and liabilities are not allocated
to operating segments as they are not considered part of the core
operations of any segment, including but not limited to:
• finance costs
• share of associates’ losses
• net gains/losses on disposal of fair value through other
comprehensive income (“FVTOCI”) investments.
Recognition and measurement
Revenue from gold and other sales
Revenue from gold and other sales represents revenue from
contracts with customers and is recognised at the point in time
when the Group transfers control of products to a customer. For
sales of gold bullion, control is obtained when the gold is credited
to the metals account of the customer. Revenue is recognised at
the amount to which the Group expects to be entitled.
Revenue from the sale of by-products such as silver is included in
sales revenue.
Interest
Interest revenue is recognised as interest accrues using the
effective interest method.
Borrowing costs
Borrowing costs incurred for the construction of any qualifying
asset are capitalised during the period of time that is required
to complete and prepare the asset for its intended use or sale.
Other borrowing costs are expensed and are included in profit or
loss as part of borrowing costs.
The capitalisation rate used to determine the amount of
borrowing costs to be capitalised is the weighted average
interest rate applicable to the entity’s outstanding borrowings
during the period.
Key estimates and judgements
Revenue from contracts with customers requires judgement to
determine the point at which the customer obtains control of gold.
Factors including transfer of legal title, transfer of significant risks
and rewards of ownership and the existence of a present right
to payment for the gold typically result in control transferring on
delivery of the gold.
Financial Report
RESOLUTE MINING LIMITED 2022 ANNUAL REPORT
7171
Financial Review RESOLUTE MINING LIMITED 2022 ANNUAL REPORT
NOTES TO THE FINANCIAL STATEMENTS
for the year ended 31 December 2022
A.1 Segment revenues and expenses (continued)
31 December 2022
$’000
Revenue
Gold and silver sales at spot to external customers (a)
Total segment gold and silver sales revenue
Costs of production
Gold in circuit inventories movement
Costs of production relating to gold sales
Royalty expense
Operational support costs
Other operating costs relating to gold sales
Administration and other corporate expenses
Share-based payments expense
Exploration, business development and impairment of investments
Earnings/(loss) before interest, tax, depreciation and amortisation
Amortisation of evaluation, development and rehabilitation costs
Depreciation of mine site properties, plant and equipment
Depreciation and amortisation relating to gold sales
Segment operating result before treasury, other income/
(expenses) and tax
Interest income
Other income
Interest and fees
Rehabilitation and restoration provision accretion
Finance costs
Realised foreign exchange (loss)/gain
Treasury - realised gains/(losses)
Inventories net realisable value movements and obsolete
consumables
Unrealised foreign exchange loss
Unrealised foreign exchange gain on intercompany balances
Fair value movements and unrealised treasury transactions
Share of associates' losses
Depreciation of non-mine site assets
Indirect tax expense
Income tax expense
Profit/(loss) for the 12 months to 31 December 2022
Unallocated (b)
Mako
(Senegal)
Syama
(Mali)
Corporate/
Other
236,760
236,760
414,369
414,369
(129,967)
(259,386)
(336)
(21,793)
(130,303)
(281,179)
(11,838)
(17,714)
(27,736)
(4,728)
(29,552)
(32,464)
(4,777)
(1,160)
-
(4,018)
68,110
(30,496)
(12,002)
(42,498)
-
(9,578)
89,988
(25,520)
(15,688)
(41,208)
25,612
48,780
7
-
(442)
(397)
(839)
853
853
24
14
(4,121)
(955)
(5,076)
879
879
-
-
-
-
-
-
-
-
(8,456)
(457)
(1,019)
(9,932)
-
-
-
(9,932)
5,482
4,535
(14,871)
-
(14,871)
(3,209)
(3,209)
Total
651,129
651,129
(389,353)
(22,129)
(411,482)
(39,574)
(22,442)
(62,016)
(14,393)
(457)
(14,615)
148,166
(56,016)
(27,690)
(83,706)
64,460
5,513
4,549
(19,434)
(1,352)
(20,786)
(1,477)
(1,477)
(7,004)
(29,073)
-
(36,077)
(1,016)
-
(1,016)
-
(175)
-
(13,411)
4,027
-
-
-
-
-
(13,387)
(4,178)
(2,017)
(14,025)
1,696
(15,041)
1,696
(12,329)
(13,345)
(1,305)
(2,013)
(62)
(2,971)
(1,305)
(2,188)
(13,449)
(20,560)
(36,675)
(34,665)
72
Financial ReportRESOLUTE MINING LIMITED 2022 ANNUAL REPORT A.1 Segment revenues and expenses (continued)
31 December 2021
$’000
Revenue
Gold and silver sales at spot to external customers (a)
Total segment gold and silver sales revenue
Costs of production
Gold in circuit inventories movement
Costs of production relating to gold sales
Royalty expense
Operational support costs
Other operating costs relating to gold sales
Administration and other corporate expenses
Share-based payments expense
Exploration, business development and impairment of investments
Earnings/(loss) before interest, tax, depreciation and amortisation
Amortisation of evaluation, development and rehabilitation costs
Depreciation of mine site properties, plant and equipment
NOTES TO THE FINANCIAL STATEMENTS
for the year ended 31 December 2022
Unallocated (b)
Mako
(Senegal)
Syama
(Mali)
Corporate/
Other
Total
221,478
221,478
327,764
327,764
(87,541)
(245,920)
583
7,894
(86,958)
(238,026)
(11,074)
(17,528)
(21,863)
(5,344)
(28,602)
(27,207)
(5,060)
(1,617)
-
(3,512)
97,346
(15,600)
(40,262)
-
(4,802)
56,112
(25,894)
(36,865)
-
-
-
-
-
-
(3,257)
(3,257)
(9,010)
(1,122)
549,242
549,242
(333,461)
8,477
(324,984)
(32,937)
(26,129)
(59,066)
(15,687)
(1,122)
(10,170)
(18,484)
(23,559)
129,899
-
-
-
(41,494)
(77,127)
(118,621)
11,278
5,14 1
3,248
Depreciation and amortisation relating to gold sales
(55,862)
(62,759)
Segment operating result before treasury,
other income/(expenses) and tax
41,484
(6,647)
(23,559)
Interest income
Other income
Interest and fees
Gain on remeasurement for refinancing
Rehabilitation and restoration provision accretion
Finance costs
Realised foreign exchange (loss)/gain
Treasury - realised (loss)/gain
Unrealised foreign exchange gain/(loss) - other
Unrealised foreign exchange loss on intercompany balances
Unrealised treasury transactions
69
-
(434)
-
(165)
(599)
(1,431)
(1,431)
635
-
635
-
-
5,072
3,248
(2,854)
(13,312)
(16,600)
-
(433)
316
-
316
(598)
(3,287)
(12,996)
(16,882)
387
387
-
-
-
859
859
(17,120)
(11,212)
(185)
(185)
(16,485)
(11,212)
(28,332)
(27,697)
Inventories write off and net realisable value movements
(53,188)
8,930
-
(44,258)
Share of associates’ losses
Depreciation of non-mine site assets
Impairment of exploration and evaluation assets
-
(151)
(4,808)
-
-
-
(3,838)
(2,221)
(260)
(3,838)
(2,372)
(5,068)
Impairment of non current assets
(55,023)
(167,373)
-
(222,396)
Indirect tax expense
Income tax expense
(9,026)
(1,413)
(9,874)
(34,424)
(5,860)
(3,845)
(24,760)
(39,682)
Loss for the 12 months to 31 December 2021
(83,451)
(212,288)
(71,732)
(367,471)
73
Financial Report RESOLUTE MINING LIMITED 2022 ANNUAL REPORT NOTES TO THE FINANCIAL STATEMENTS
for the year ended 31 December 2022
A.1 Segment revenues and expenses (continued)
(a) Revenue from external sales for each reportable segment is derived from several customers.
(b)
This information does not represent an operating segment as defined by AASB 8, however this information is analysed in this
format by the Chief Operating Decision maker, and forms part of the reconciliation of the results and positions of the operating
segments to the financial statements.
A.2 Dividends paid or proposed
The company’s dividend policy is, subject to board discretion, to pay a minimum of 2% of gold sales revenue as a dividend. A dividend
has not been declared for the year ended 31 December 2022.
A.3 Loss per share
Basic loss per share
Loss attributable to ordinary equity holders for operations of the parent for
basic loss per share ($‘000)
Weighted average number of ordinary shares outstanding during the year
used in the calculation of basic EPS and diluted EPS
Basic loss per share from operations (cents per share)
31 December 2022
31 December 2021
(34,083)
(319,203)
1,196,856,518
1,103,896,747
cents
(2.85)
cents
(28.92)
Diluted loss per share from operations (cents per share)(1)
(2.85)
(28.92)
(1) Potentially dilutive instruments have not been included in the calculation of diluted earnings per share for 31 December 2022 and 31 December 2021 because the result for the
year was a loss.
Measurement
Basic earnings per share (“EPS”) is calculated as net (loss)/profit attributable to members, adjusted to exclude preference share
dividends, divided by the weighted average number of ordinary shares, adjusted for any bonus element.
Diluted EPS is calculated as the net (loss)/profit attributable to members, adjusted for:
• The after tax effect of dividends and interest associated with dilutive potential ordinary shares that have been recognised as
expenses
• other non-discretionary changes in revenues or expenses during the year that would result from the dilution of potential ordinary
shares
• divided by the weighted average number of ordinary shares and dilutive potential ordinary shares, adjusted for any bonus element.
Information on the classification of securities file
Options and performance rights granted to employees (including Key Management Personnel) as described in E.9 are considered to
be potential ordinary shares and have been included in the determination of diluted earnings per share to the extent they are dilutive.
These options and performance rights have not been included in the determination of basic loss per share.
74
Financial ReportRESOLUTE MINING LIMITED 2022 ANNUAL REPORT NOTES TO THE FINANCIAL STATEMENTS
for the year ended 31 December 2022
31 December 2022
31 December 2021
A.4 Taxes
$’000
a) Income tax (benefit)/expense
Current tax expense
Deferred tax (benefit)/expense
Total tax expense
b) Numerical reconciliation of income tax (benefit)/expense
to prima facie tax (benefit)/expense
Loss before income tax benefit from operations
Total accounting loss
Prima facie income tax benefit at 30% (31 December 2021: 30%)
Add/(deduct):
- net movement in temporary differences and tax losses not recognised
- effect of different rates of tax on overseas income
- effect of share based payments expense not deductible
- prior year tax losses recognised
- prior year under provision
- other permanent differences
Income tax expense attributable to net profit
c) Tax losses (tax effected)
Revenue losses
- Australia
- Mali
- Ghana
Capital losses
- Australia
Total tax losses
Total tax losses – recognised
Total tax losses not used against deferred tax liabilities for which no deferred tax
asset has been recognised (potential tax benefit at the prevailing tax rates of the
respective jurisdictions) (tax effected)
22,151
(1,591)
20,560
(14,105)
(14,105)
(4,232)
9,649
(500)
134
(1,569)
1,256
15,822
20,560
-
61,620
-
61,620
46,773
108,393
-
37,613
2,069
39,682
(327,789)
(327,789)
(98,337)
98,104
(8,477)
337
(1,801)
-
49,856
39,682
1,056
70,067
-
71,123
50,581
121,704
-
108,393
121,704
75
Financial Report RESOLUTE MINING LIMITED 2022 ANNUAL REPORT
NOTES TO THE FINANCIAL STATEMENTS
for the year ended 31 December 2022
A.4 Taxes (continued)
$’000
d) Deferred tax assets
Balance at the beginning of the year
(Utilised)/recognised during the period
Foreign currency translation
Balance as at the end of the year
The deferred tax assets balance comprises temporary differences attributable to:
Receivables
Financial assets at fair value through other comprehensive income
Mineral exploration and development interests
Investments in associates
Property, plant and equipment
Payables and provisions
Business related costs
Financial derivative assets
Temporary differences not recognised
Set off of deferred tax liabilities pursuant to set off provisions
Net deferred tax assets
e) Deferred tax liabilities
The deferred tax liabilities balance comprises temporary differences attributable to:
Receivables
Inventories
Mineral exploration and development interests
Payables
Provision
Total
Set off of deferred tax assets pursuant to set off provisions
Net deferred tax liabilities
f) The equity balance comprises temporary differences attributable to:
Convertible notes equity reserve
Option equity reserve
Unrealised loss reserve
Net temporary differences in equity
Set off of deferred tax liabilities pursuant to set off provisions
Total temporary differences in equity
Franking credits
31 December 2022
31 December 2021
-
-
-
-
42,924
(681)
113,745
2,870
27,740
3,778
979
464
(179,570)
(12,247)
-
1,176
7,559
1,350
1,705
457
12,247
(12,247)
-
132
1,750
44
1,926
(44)
1,882
10,081
(9,900)
(181)
-
94,945
9,604
118,679
3,057
29,667
10,003
1,710
-
(248,853)
(18,812)
-
4,527
7,874
5,706
1,816
480
20,403
(18,812)
1,591
141
1,863
46
2,050
(46)
2,004
The amount of franking credits available for subsequent financial years is as follows.
The amount has been determined using a tax rate of 30%.
74
78
76
Financial ReportRESOLUTE MINING LIMITED 2022 ANNUAL REPORT NOTES TO THE FINANCIAL STATEMENTS
for the year ended 31 December 2022
A.4 Taxes (continued)
Recognition and measurement
The income tax expense or revenue for the year is the tax
payable on the current year’s taxable income based on the
national income tax rate for each jurisdiction adjusted by
changes in deferred tax assets and liabilities attributable to
temporary differences between the tax bases of assets and
liabilities and their carrying amounts in the financial statements,
and by unused tax losses (if appropriate).
Deferred tax liabilities are recognised for all taxable temporary
differences. Deferred tax assets are recognised for deductible
temporary differences, unused tax losses and unused tax credits
only if it is probable that sufficient future taxable income will be
available to utilise those temporary differences and losses.
Deferred tax is not recognised if the temporary difference arises
from goodwill or from the initial recognition (other than in a
business combination) of assets and liabilities in a transaction
that affects neither taxable profit or loss; or the accounting profit
or loss arising from taxable differences related to investment
in subsidiaries, associates and interests in joint ventures to the
extent that:
• the Group is able to control the reversal of the temporary
difference
• the temporary difference is not expected to reverse in the
foreseeable future.
Deferred tax assets and liabilities are measured at the tax rates
that are expected to apply in the year in which the liability is
settled or the asset is realised, based on tax rates (and tax laws)
that have been enacted or substantially enacted by the end of
the reporting year. Deferred tax assets and liabilities are offset
only if certain criteria are met. Income taxes relating to items
recognised directly in equity are recognised in equity.
Tax consolidation
Resolute and its wholly-owned Australian controlled entities
implemented the tax consolidation legislation as of 1 July 2002
and the entities in the tax consolidated group entered into a tax
sharing agreement, which limits the joint and several liability
of the wholly-owned entities in the case of a default by the
head entity, Resolute. The entities have also entered into a tax
funding agreement under which the wholly-owned entities fully
compensate Resolute for any current tax payable assumed and
are compensated by Resolute for any current tax receivable.
Key estimates and judgements
The Group records its best estimate of these items based
upon the latest information available and management’s
interpretation of enacted tax laws. Whilst the Group believes
it has adequately provided for the outcome of these matters,
future results may include favourable or unfavourable
adjustments as assessments are made, or resolved.
The recognition basis of deductible temporary differences
and unused tax losses in the form of deferred tax assets
is reviewed at the end of each reporting year and de-
recognised to the extent that it is no longer probable that
sufficient taxable profits will be available to allow all or part
of the asset to be recovered.
The Senegal Ministry of Mines has advised that it had not
granted the expected extension of the tax exoneration period
from 5 years to 7 years (“Exoneration Extension”). Resolute
continues to dispute this position and is firmly of the view
that it has satisfied all relevant grounds for the Exoneration
Extension to be granted, specifically the one year extension
to the mine life. Resolute is working with the Senegalese
authorities to resolve this matter. Notwithstanding this, as
required under the relevant accounting standards, Resolute
has recognised an expense of $10.8 million for income tax
and derecognised a tax liability of $1.6 million for deferred
income tax to reflect the shortened tax exoneration period.
There are no deferred income tax asset recognised at 31
December 2022 in relation to carried forward Mali tax losses.
The future benefit will only be obtained if:
(i) future assessable income is derived of a nature and an
amount sufficient to enable the benefit to be realised
(ii) the conditions for deductibility imposed by tax legislation
have been continued to be complied with
(iii) no changes in tax legislation adversely affect the
consolidated entity in realising the benefit.
77
Financial Report RESOLUTE MINING LIMITED 2022 ANNUAL REPORT
NOTES TO THE FINANCIAL STATEMENTS
for the year ended 31 December 2022
B: Production and Growth Assets
IN THIS SECTION
Included in this section is relevant information about recognition, measurement, depreciation, amortisation and impairment
considerations of the core producing and growth (exploration and evaluation) assets of Resolute.
B.1 Mine properties and property,
plant and equipment
Key estimates and judgements
Recognition and measurement
Stripping activity asset
The Group incurs waste removal costs (stripping costs) in the
creation of improved access and mining flexibility in relation
to ore to be mined in the future. The costs are capitalised as a
stripping activity asset, where certain criteria are met. Once the
Group has identified its production stripping for each surface
mining operation, it identifies the separate components for
the orebodies in each of its mining operations. An identifiable
component is a specific volume of the ore body that is made
more accessible by the stripping activity. The costs of each
component are amortised on a units of production basis in
applying a stripping ratio.
Development expenditure
a) Areas in Development: Costs incurred in preparing mines
for production including required plant infrastructure.
b) Areas in Production: Represent the accumulation of
all acquired exploration, evaluation and development
expenditure in which economic mining of an Ore Reserve has
commenced. Amortisation of costs is provided on the unit of
production method.
Property, plant and equipment
Property, plant and equipment are stated at cost less any
accumulated depreciation and any impairment losses.
Stripping activity assets
Judgement is required to identify a suitable production
measure to be used to allocate production stripping costs
between inventory and any stripping activity asset(s) for
each component. The Group considers that the ratio of the
expected volume of waste to be stripped for an expected
volume of ore to be mined for a specific component of the
orebody, to be the most suitable production measure.
An identifiable component is a specific volume of the ore
body that is made more accessible by the stripping activity.
Judgement is also required to identify and define these
components, and also to determine the expected volumes
(e.g. tonnes) of waste to be stripped and ore to be mined in
each of these components. These assessments are based
on the information available in the mine plan which will
vary between mines for a number of reasons, including, the
geological characteristics of the ore body, the geographical
location and/or financial considerations.
Stripping ratio
The Group has adopted a policy of capitalising production
stage stripping costs and amortising them on a units of
production basis. Significant judgement is required in
determining the contained ore units for each mine.
Factors that are considered include:
• any proposed changes in the design of the mine;
The cost of an item of property, plant and equipment comprises:
• estimates of the quantities of ore reserves and mineral
• its purchase price, including import duties and non-
refundable purchase taxes, after deducting trade discounts
and rebates;
• any costs directly attributable to bringing the asset to the
location and condition necessary for it to be capable of
operating in the manner intended by management; and
• the initial estimate of the costs of dismantling and removing
the item and restoring the site on which it is located.
Depreciation is provided on the following basis:
Life
Method
Motor vehicles
3-5 years
Straight line
Office equipment
3 years
Straight line
Plant and equipment
Life of mine years
or 2-6 years
Straight line over
life of mine years
or straight line
Processing plant
Life of mine
production
Units of
production
resources for which there is a high degree of confidence
of economic extraction
• future production levels
• future commodity prices and
• future cash costs of production and capital expenditure.
Determining the beginning of production
The Group ceases capitalising pre-production costs and
begins depreciation and amortisation of mine property
assets at the point commercial production commences.
This is based on the specific circumstances of the project,
and considers when the specific asset becomes ‘available
for use’ as intended by management which includes
consideration of the following factors:
• completion of a reasonable period of testing of the mine
plant and equipment
• mineral recoveries, availability and throughput levels
at or near expected/feasibility study levels
• the ability to produce gold into a saleable form (where
more than an insignificant amount is produced)
• the achievement of continuous production and
• estimation of mineral reserves and resources.
78
Financial ReportRESOLUTE MINING LIMITED 2022 ANNUAL REPORT
NOTES TO THE FINANCIAL STATEMENTS
for the year ended 31 December 2022
B.1 Mine properties and property, plant and equipment (continued)
Plant and Equipment
Development Expenditure
31 December 2022
$’000
s
g
n
d
i
l
i
u
B
t
n
e
m
p
u
q
E
i
d
n
a
t
n
a
P
l
Opening written down value
10,636
212,425
Additions
671
33,888
Transfers (to)/from areas in
exploration and development
Reallocations
Disposals
(12)
-
-
463
(351)
(223)
s
e
l
c
i
h
e
V
r
o
t
o
M
2,320
428
(412)
-
-
Depreciation expense
(1,009)
(16,645)
(556)
(1,989)
(20,199)
Amounts amortised to costs of
production relating to gold sales
Amortisation expense
Adjustments to rehabilitation
and restoration obligations
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
t
n
e
m
p
u
q
E
i
e
c
i
ff
O
s
e
i
t
r
e
p
o
r
P
e
n
M
i
i
g
n
p
p
i
r
t
S
y
t
i
v
i
t
c
A
t
e
s
s
A
l
a
t
o
T
l
a
t
o
T
3,783
229,164
246,714
17,777
264,491
912
35,899
6,024
25,296
31,320
78
351
117
-
-
(223)
-
-
-
-
-
-
-
-
-
-
-
-
-
(16,233)
(16,233)
(49,472)
(197)
-
-
(49,472)
(197)
(7,514)
Foreign currency translation
(549)
(9,354)
(133)
(261)
(10,297)
(9,298)
1,784
At 31 December net of
accumulated depreciation
9,737
220,203
1,647
2,874
234,461
193,771
28,624
222,395
Cost
26,311
513,899
13,764
18,560
572,534
746,061
51,876
797,937
Accumulated depreciation
and impairment
(16,574)
(293,696)
(12,117)
(15,686)
(338,073)
(552,290)
(23,252)
(575,545)
Net carrying amount
9,737
220,203
1,647
2,874
234,461
193,771
28,624
222,395
31 December 2021
$’000
Opening written down value
7,797
276,798
Additions
30
33,463
Transfers (to)/from areas in
exploration and development
Reallocations
Disposals
Impairment recognised
in the current year
2,558
231
2,642
(482)
(66)
5,525
292,678
488,709
6,572
495,281
510
34,234
11,324
17,780
29,104
719
241
-
(86)
(1,397)
-
(78)
-
(11)
-
-
-
(1,397)
-
(11)
4,149
3,314
-
(7,596)
(3,073)
(12)
(2,862)
(44,550)
(993)
(236)
(48,641)
(169,802)
(836)
(170,638)
Depreciation expense
(905)
(32,348)
(1,431)
(2,648)
(37,332)
Amounts amortised to costs of
production relating to gold sales
Amortisation expense
Adjustments to rehabilitation
and restoration obligations
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
(3,040)
(3,040)
(69,981)
(2,723)
(72,704)
6,129
-
24
6,129
(18,233)
Foreign currency translation
(887)
(10,257)
(139)
(328)
(11,611)
(18,257)
At 31 December net of
accumulated depreciation
Cost
Accumulated depreciation
and impairment
10,636
212,425
27,026
503,172
2,320
14,243
3,783
229,164
246,714
17,777
264,491
18,241
562,682
778,691
24,783
803,474
(16,390)
(290,747)
(11,923)
(14,458)
(333,518)
(531,977)
(7,006)
(538,983)
Net carrying amount
10,636
212,425
2,320
3,783
229,164
246,714
17,777
264,491
79
Financial Report RESOLUTE MINING LIMITED 2022 ANNUAL REPORT
NOTES TO THE FINANCIAL STATEMENTS
for the year ended 31 December 2022
B.2 Exploration and evaluation assets
Exploration and evaluation (at cost)
Balance at the beginning of the year
Disposal of subsidiary
Evaluation expenditure during the year
Transfers (to)/from areas in exploration and development
Impaired during the year
Write-off during the year
Foreign currency translation
Balance at the end of the year
31 December 2022 31 December 2021
$’000
$’000
2,909
-
1,524
(117)
-
-
(1,105)
3,211
6,469
(726)
536
1,483
(5,068)
(1,157)
1,372
2,909
Recognition and measurement
Exploration expenditure is expensed to the consolidated statement of comprehensive income as and when it is incurred and included
as part of cash flows from operating activities. Exploration costs are only capitalised to the consolidated statement of financial
position if they result from an acquisition.
Evaluation expenditure is capitalised to the consolidated statement of financial position. Evaluation is deemed to be activities
undertaken from the beginning of the pre-feasibility study conducted to assess the technical and commercial viability of extracting a
mineral resource before moving into the Development phase. The criteria for carrying forward the costs are:
• such costs are expected to be recouped through successful development and exploitation of the area of interest, or alternatively
by its sale
• evaluation activities in the area of interest which has not yet reached a state which permits a reasonable assessment of the
existence or otherwise of economically recoverable reserves, and active and significant operations in, or in relation to, the area are
continuing.
Costs carried forward in respect of an area of interest which is abandoned are written off in the year in which the abandonment
decision is made.
Exploration commitments
It is difficult to accurately forecast the nature or amount of future expenditure, although it is necessary to incur expenditure in
order to retain present interests in mineral tenements. Expenditure commitments on mineral tenure can be reduced by selective
relinquishment of exploration tenure or by the renegotiation of expenditure commitments. The level of exploration and evaluation
expenditure expected in the 12 months ending 31 December 2023 for the consolidated entity is approximately $15.5 million (actual
expenditure for the year ended 31 December 2022: $10.7 million). This includes the minimum amounts required to retain tenure.
There are no material exploration commitments beyond year.
80
Financial ReportRESOLUTE MINING LIMITED 2022 ANNUAL REPORT NOTES TO THE FINANCIAL STATEMENTS
for the year ended 31 December 2022
B.3 Impairment of non current assets
Recognition and measurement
Impairment testing
In accordance with the Group’s accounting policies, each asset or cash-generating unit (CGU) is evaluated to determine whether there
are any indications of impairment. If any such indications of impairment exist, a formal estimate of the recoverable amount is performed.
In assessing whether an impairment is required, the carrying value of the asset or CGU is compared with its recoverable amount. The
recoverable amount is the higher of the CGU’s fair value less costs of disposal (FVLCD) and value in use (VIU). Recoverable amount has
been determined based on FVLCD. Given the nature of the Group’s activities, information on the fair value of an asset is usually difficult
to obtain unless negotiations with potential purchasers or similar transactions are taking place. Consequently, the FVLCD for each CGU
is estimated based on discounted future estimated cash flows (expressed in real terms) expected to be generated from the continued
use of the CGUs using market-based gold price assumptions, the level of proved and probable reserves and measured, indicated
and inferred mineral resources, estimated quantities of recoverable gold, production levels, operating costs and capital requirements,
including any expansion projects, and its eventual disposal, based on the CGU latest life of mine (LOM) plans. These cash flows are
discounted using a real post-tax discount rate that reflects current market assessments of the time value of money and the risks specific
to the CGU. When LOM plans do not fully utilise existing mineral properties for a CGU, and options exist for the future extraction and
processing of all or part of those resources, an estimate of the value of mineral properties is included in the determination of fair value.
The determination of FVLCD for each CGU are considered to be Level 3 fair value measurements, as they are derived from valuation
techniques that include inputs that are not based on observable market data. The Group considers the inputs and the valuation
approach to be consistent with the approach taken by market participants.
Syama CGU – 31 December 2022
Syama indicator assessment
As a result of the presence of a general indicators of impairment being the Group’s market capitalistion being lower the it’s net assets,
a formal impairment test was performed to determine the recoverable amount for the Syama CGU.
Key Assumptions used to determine recoverable amount
The table below summarises the key assumptions used in determining the recoverable amount:
Gold price ($/oz)
Discount rate (post tax real)
Unmined resources ($/oz)
31 December 2022
31 December 2021
1,735-1,534
14.8%
20-58
1,777-1,467
14.0%
20-54
Gold prices
Gold prices are estimated with reference to external market forecasts based on a consensus view of market experts.
Discount rate
In determining the recoverable amount of assets, the future cash flows were discounted using rates based on the CGU’s estimated
real weighted average cost of capital, with an additional premium applied having regard to the CGU’s risk profile.
Unmined resources
Unmined resources which are not included in the LOM plan as result of the current assessment of economic returns, timing of
specific production alternatives and the prevailing economic environment have been valued and included in the assessed fair value.
Operating and capital costs
LOM operating and capital cost assumptions are based on the Group’s latest budget and LOM plans. Operating cost assumptions
reflect an assumption of maintaining current cost, over the long term, without including expected improvements over the LOM.
Recognition
As a result of the analysis performed by Management, there is no impairment loss recognised for the Syama CGU for the year ended
31 December 2022. Sensitivity disclosures for the Syama CGU have not been included, on the basis that the impairment assessment is
not sensitive to changes in assumptions.
81
Financial Report RESOLUTE MINING LIMITED 2022 ANNUAL REPORT NOTES TO THE FINANCIAL STATEMENTS
for the year ended 31 December 2022
B.3 Impairment of non current assets (continued)
Mako CGU – 31 December 2022
Mako indicator assessment
As a result of the general indicators of impairment noted above and the potential reduction in the tax exoneration period to 5 years
(refer to Note A.4), a formal impairment test was performed to determine the recoverable amount for the Mako CGU.
Key Assumptions
The table below summarises the key assumptions used in the recoverable amount:
Gold price ($/oz)
Discount rate (post tax real)
Unmined resources ($/oz)
31 December 2022
31 December 2021
1,735-1,534
10.5%
48
1,777-1,467
10.5%
44
Gold prices
Gold prices are estimated with reference to external market forecasts based on a consensus view of market experts.
Discount rate
In determining the recoverable amount of assets, the future cash flows were discounted using rates based on the CGU’s estimated
real weighted average cost of capital, with an additional premium applied having regard to the CGU’s risk profile.
Unmined resources
Unmined resources which are not included in a CGU’s LOM plan as result of the current assessment of economic returns, timing of
specific production alternatives and the prevailing economic environment have been valued and included in the assessed fair value.
Operating and capital costs
LOM operating and capital cost assumptions are based on the Group’s latest budget and LOM plans. Operating cost assumptions
reflect the expectation that costs will, over the long term, have a degree of positive correlation to the prevailing gold price rate
assumptions.
Recognition
As a result of the analysis performed, there is no impairment loss recognised for the Mako CGU for the period ended
31 December 2022.
Mako Sensitivity Analysis
It is estimated that changes in key assumptions underpinning the recoverable amount, in isolation, would have the following approximate
impact (increase or decrease) on the surplus to carrying value of $19.288 million for the Mako CGU as at 31 December 2022.
10% change in gold price ($ per oz)(1)
1% change in discount rate
10% change in value of unmined resources
10% change in operating cost(2)
Increase in key assumption
$‘000
Decrease in key assumption
$’000
59,809
(3,463)
624
(35,450)
(60,064)
3,482
(624)
35,359
(1) A reduction of approximately 3% in the gold price results in the Mako CGU’s recoverable amount being equal to it’s carrying value.
(2) An increase of approximately 4% in operating cost results in the Mako CGU’s recoverable amount being equal to it’s carrying value.
82
Financial ReportRESOLUTE MINING LIMITED 2022 ANNUAL REPORT NOTES TO THE FINANCIAL STATEMENTS
for the year ended 31 December 2022
Key estimates and judgements
Determination of Mineral Resources and Ore Reserves
The determination of Ore Reserves impacts the accounting
for asset carrying values, depreciation and amortisation rates,
deferred stripping costs and provisions for decommissioning
and restoration.
The information in this report as it relates to ore reserves,
mineral resources or mineralisation is reported in accordance
with the Aus.IMM “Australian Code for reporting of Identified
Mineral Resources and Ore Reserves”. The information
has been prepared by, or under supervision of, competent
persons as identified by the Code.
There are numerous uncertainties inherent in estimating
mineral resources and ore reserves and assumptions that are
valid at the time of estimation which may change significantly
when new information becomes available.
Changes in the forecast prices of commodities, exchange
rates, production costs or recovery rates may change the
economic status of reserves and may, ultimately, result in the
reserves being restated.
The future recoverability of capitalised mine properties and
plant and equipment is dependent on a number of key factors
including: gold price assumptions, the level of proved and
probable reserves and measured, indicated and inferred
mineral resources, estimated quantities of recoverable gold,
production levels, operating costs and capital requirements,
including any expansion projects, and its eventual disposal,
based on the CGU latest LOM plans. The costs to dispose
are estimated by management based on prevailing market
conditions.
When applicable, fair value is estimated based on discounted
cash flows using gold price assumptions, the level of proved
and probable reserves and measured, indicated and inferred
mineral resources, estimated quantities of recoverable gold,
production levels, operating costs and capital requirements,
including any expansion projects, and its eventual disposal,
based on the CGU latest LOM plans.
Consideration is also given to analysts’ valuations, and
the market value of the Company’s securities. The fair
value methodology adopted is categorised as Level 3 in
the fair value hierarchy (in accordance with Australian
Accounting Standards).
B.4 Segment expenditure, assets, and liabilities
31 December 2022
Capital expenditure
Segment assets
Segment liabilities
31 December 2021
Capital expenditure
Segment assets of continuing operations
Segment liabilities of continuing operations
Mako
(Senegal)
$’000
21,966
260,949
142,045
Mako
(Senegal)
$’000
15,043
263,371
85,427
Syama
(Mali)
$’000
44,662
551,377
211,916
Syama
(Mali)
$’000
43,957
591,794
225,640
Corp/
Other
$‘000
2,116
56,467
43,338
Corp/
Other
$‘000
1,463
129,036
247,574
Total
$’000
68,744
868,793
397,299
Total
$’000
60,463
984,201
558,641
83
Financial Report RESOLUTE MINING LIMITED 2022 ANNUAL REPORT
NOTES TO THE FINANCIAL STATEMENTS
for the year ended 31 December 2022
C: Cash, Debt and Capital
IN THIS SECTION
Cash, debt and capital position of the Group at the end of the reporting year.
C.1 Cash
Cash at bank and on hand
Reconciliation to cash flow statement
For the purpose of the cash flow statement, cash and cash equivalents comprise the fol-
lowing at the end of each year:
Cash at bank and on hand
Bank overdraft - ref C.2
Total
31 December 2022
$’000
31 December 2021
$’000
80,873
67,607
80,873
(45,414)
35,459
67,607
(42,370)
25,237
The credit quality of cash and cash equivalents can be assessed by reference to external credit ratings (if available) or to historical
information about counterparty default rates:
Cash at bank
Counterparties with external credit ratings
AA-
A
A+
BB
B
Counterparties without external credit ratings
Total cash at bank and short term deposits
31 December 2022
$’000
31 December 2021
$’000
215
520
68,997
67
11,074
-
80,873
253
145
61,363
67
5,402
377
67,607
Recognition and measurement
Cash and cash equivalents in the statement of financial position comprise cash at bank and short-term deposits with an original
maturity of three months or less. Cash and cash equivalents are stated at face value in the statement of financial position.
Fair value and foreign exchange risk
The carrying amount of cash and cash equivalents approximates their fair value.
The Group held $72.7 million of cash and cash equivalents at 31 December 2022 (31 December 2021: $67.1 million) in currencies
other than Australian dollars or a different currency to that of the functional currency of the company which holds the item.
These exposures are predominantly United States dollars (31 December 2022: $66.7 million; 31 December 2021: $56.0 million
equivalent) and Euro (31 December 2022: $1.2 million; 31 December 2021: $10.5 million equivalent).
84
Financial ReportRESOLUTE MINING LIMITED 2022 ANNUAL REPORT
NOTES TO THE FINANCIAL STATEMENTS
for the year ended 31 December 2022
C.1 Cash (continued)
Reconciliation of net profit after income tax to the net operating cash flows:
Loss after tax
Add/(deduct):
Share based payments including employee long term incentive costs
(Gain)/loss on remeasurement for refinancing
Unrealised foreign exchange (gain)/loss on intercompany balances
Rehabilitation and restoration provision accretion
Depreciation and amortisation
Foreign exchange losses/(gains)
Share of associates’ losses
Indirect tax expense
Non cash interest income
Exploration write offs
Impairment of non current assets and assets held for sale
Changes in operating assets and liabilities:
(Increase)/decrease in receivables
Decrease in inventories
Decrease/(increase) in prepayments
(Decrease)/increase in payables
Net increase/(decrease) in current tax liabilities
(Decrease)/increase in deferred tax balances
(Decrease)/increase in operating provisions
Net operating cash flows
31 December 2022
$’000
31 December 2021
$’000
(34,665)
(367,471)
(457)
-
(1,697)
1,352
85,894
15,042
1,305
13,449
(5,482)
-
-
221
21,643
1,727
(19,810)
12,728
(1,591)
1,246
90,905
1,206
(316)
11,214
598
120,993
16,483
3,838
24,760
(5,072)
1,157
227,464
(183)
16,345
(4,083)
13,674
7,499
2,250
(19,798)
50,558
85
Financial Report RESOLUTE MINING LIMITED 2022 ANNUAL REPORT NOTES TO THE FINANCIAL STATEMENTS
for the year ended 31 December 2022
C.2 Interest bearing liabilities
Interest bearing liabilities (current)
Bank overdraft
Insurance premium funding
Bank borrowings
Total Interest bearing liabilities (current)
Interest bearing liabilities (non current)
Bank borrowings
Total Interest bearing liabilities (non current)
31 December 2022
$’000
31 December 2021
$’000
45,414
-
50,220
95,634
29,482
29,482
42,370
109
50,247
92,726
223,979
223,979
Total
125,116
316,705
Recognition and measurement
All loans and borrowings are initially recognised at fair value less transaction costs and subsequently at amortised cost. Any
difference between the proceeds received and the redemption amount is recognised in the income statement over the year of the
borrowings using the effective interest method.
Resolute has a Security Trust Deed in place with various banks. The total assets of the entities over which security exists amounts to
$868.8 million (as at 31 December 2021: $977.2 million). $234.5 million (as at 31 December 2021: $229.2 million) of these assets relate
to property, plant and equipment.
Interest bearing liabilities
The Group’s interest bearing liabilities are classified as level 3 in the fair value hierarchy and have a fair value approximate to the
carrying value.
The Group held $125.1 million of interest bearing liabilities at 31 December 2022 (as at 31 December 2021: $316.7 million) in currencies
other than Australian dollars or a different currency to that of the functional currency of the company which holds the item.
The average interest rates charged on interest bearing liabilities for the year ended 31 December 2022 was 6.79% (31 December
2021: 4.23%).
The Group’s main Secured Overnight Financing Rate (SOFR) exposure at 31 December 2022 was in relation to the Syndicate
Borrowing Facility. The alternative reference rate for United States dollar LIBOR is the SOFR. All newly transacted floating rate
financial assets and liabilities are linked to an alternative benchmark rate, such as SOFR or if, linked to LIBOR, include detailed
fallback clauses clearly referencing the alternative benchmark rate and the trigger event on which the clause is activated.
Maturity profile of interest-bearing liabilities
The maturity profile of the Group’s interest-bearing liabilities in total and for finance leases is as follows:
31 December 2022
$’000
31 December 2021
$’000
76,712
26,122
25,340
128,174
(3,058)
125,116
62,053
39,778
228,836
330,667
(13,962)
316,705
Borrowings
Due within 1 to 3 months
Due within 4 months to one year
Due between one and five years
Total contractual repayments
Less future interest charges
Total interest bearing liabilities
86
Financial ReportRESOLUTE MINING LIMITED 2022 ANNUAL REPORT
NOTES TO THE FINANCIAL STATEMENTS
for the year ended 31 December 2022
C.3 Financing facilities
C3.1 Bank overdraft
The current overdraft facilities with the Bank Du Mali SA are in
place and are subject to an annual revision in May 2023. The
facilities total CFA 25.0 billion ($40.8 million) and as at
31 December 2022, $4.7 million of the facility was undrawn.
The current overdraft facility with Orabank is subject to an
annual revision in December 2023. The facility totals CFA 7.0
billion ($11.4 million) and as at 31 December 2022, $1.9 million of
the facility was undrawn.
(v) Mining Mortgage and Fixed and Floating Charge granted
by Carpentaria Gold Pty Ltd over all the current and future
assets including bank accounts and an assignment of all
Hedging Contracts
(vi) Mortgage of Contractual Rights granted by Resolute over
a loan provided to Société des Mines de Syama SA to fund
the development of the Syama Gold project in Mali
(vii) Security Agreement granted by Resolute Treasury UK
Limited over all current and future assets including bank
accounts and assignment of all Hedging contracts
(viii) Specific Security Deed granted by Resolute over all its
share in Resolute (Finkolo) Pty Ltd and a featherweight
security over its assets not secured under a Security
Document
(ix) Share Pledge Agreement granted by Toro Gold Limited
over all its shares in Bambuk Minerals Limited.
Pursuant to the Syndicated Facility Agreement, the following
ratios are required:
(i)
Interest Cover Ratio: the ratio of EBITDA to Net Interest
Expense will be greater than 5.00 times
(ii) Net Debt to EBITDA: the ratio of Net Debt to EBITDA will
be less than 2.50 times
(iii) Consolidated Gearing: the ratio of Net Debt to Equity will
be less than 1.00 times
(iv) Reserve Tail Ratio: will exceed 30%
(v) Project Life Coverage Ratio: will be equal to or greater than
1.50:1
(vi) Tangible Net Worth: will be equal to or greater than
A$500,000,000
(vii) Minimum Liquidity Test: aggregate of Liquid Assets is more
than US$35.0 million.
There have been no breaches of these ratios.
C3.2 Syndicated facilities
On 25 March 2020, Resolute entered into a $300.0 million
Syndicated Facility Agreement (the “SFA”) comprising a three
year $150.0 million revolving credit facility (Facility A) and a
four year $150.0 million term loan facility (Facility C) with the
participation of Investec, BNP Paribas S.A, Citibank N.A, ING
Group, Societe Generale and Nedbank Limited. In addition,
Facility B is a three-year $5.0 million letter of credit facility which
relates mainly to lease guarantees. Facility A and Facility B are
scheduled to mature on 25 March 2024.
As at 31 December 2022, $95.0 million of Facility A was
undrawn. The available balance in Facility A will permanently
reduce by the following amounts on the following dates:
• $20.0 million in March 2023 in line with the original RCF
maturity date; and
• the final $80.0 million in March 2024.
As at 31 December 2022, $5.0 million of Facility A and $75.0
million of Facility C has been drawn.
The SFA and hedging facilities (which are also provided by the
lenders or their affiliates) are secured and guaranteed by the
following:
(i) Cross guarantee and indemnity given by Resolute Mining
Limited, Resolute (Treasury) Pty Ltd, Resolute (Somisy)
Pty Ltd, Carpentaria Gold Pty Ltd, Resolute Treasury UK
Limited, Resolute (Finkolo) Pty Ltd, Toro Gold Limited and
Bambuk Minerals Limited
(ii) Share Mortgage granted by Resolute over all of its shares
in Carpentaria Gold Pty Ltd
(iii) Specific security deed granted by Resolute over all of its
shares in Resolute (SOMISY) Pty Ltd
(iv) Fixed and Floating Charge granted by Resolute (Treasury)
Pty Ltd over all its current and future assets including bank
accounts and an assignment of all Hedging Contracts
87
Financial Report RESOLUTE MINING LIMITED 2022 ANNUAL REPORT NOTES TO THE FINANCIAL STATEMENTS
for the year ended 31 December 2022
C.4 Contributed Equity
Ordinary share capital:
31 December 2022
$’000
31 December 2021
$’000
2,129,006,569 ordinary fully paid shares (2021: 1,103,931,520)
882,731
777,021
Movements in contributed equity, net of issuing costs:
Balance at the beginning of the year
Placement of shares to institutional investors
Share issue costs
Balance at the end of the year
777,021
110,289
(4,579)
882,731
777,021
-
-
777,021
Recognition and measurement
Issued and paid up capital is recognised at the fair value of the consideration received by the Company. Incremental costs directly
attributable to the issue of new shares or options are shown in equity as a deduction, net of tax, from the proceeds.
Terms and conditions of contributed equity
Ordinary shares have the right to receive dividends as declared and in the event of winding up the Company, to participate in the
proceeds from the sale of all surplus assets in proportion to the number of and amounts paid up on shares held. Ordinary shares
entitle their holder to one vote, either in person or by proxy, at a meeting of the Company.
Rights of employee share-based payment recipients
Refer to E.9 for details of the employee share-based payment plans which includes option and performance rights plans. Each option
entitles the holder to purchase one share. The names of all persons who currently hold employee share options or performance rights,
granted at any time, are entered into the register kept by the Company, pursuant to Section 215 of the Corporations Act 2001 (Cth.).
Persons entitled to exercise these options and holders of performance rights have no right, by virtue of the options, to participate in
any share issue by the parent entity or any other body corporate.
C.5 Other reserves
Reserve
Nature and purpose
Net unrealised gain/(loss) reserve
Convertible notes/Share options
equity reserve
Employee benefits equity reserve
This reserve records fair value changes on financial assets at fair value through other
comprehensive income.
This reserve records the value of the equity portion (conversion rights) of the convertible
notes and records the fair value of share options issued.
This reserve is used to recognise the fair value of options and performance rights granted
over the vesting year of the securities provided to employees.
Foreign currency translation reserve
Represents exchange differences arising on translation of foreign controlled entities.
Non-controlling interests’ reserve
This reserve records the difference between the fair value of the amount by which the
non-controlling interests were adjusted to record their initial relative interest and the
consideration paid for Resolute’s acquisition for that share of the interest.
88
Financial ReportRESOLUTE MINING LIMITED 2022 ANNUAL REPORT
NOTES TO THE FINANCIAL STATEMENTS
for the year ended 31 December 2022
C.5 Other reserves (continued)
Key financial and capital risks associated with cash, debt and capital
Liquidity risk management
Prudent liquidity risk management implies maintaining sufficient cash and marketable securities or having the availability
of funding through an adequate amount of undrawn committed credit facilities.
Interest rate risk management
Borrowings issued at variable rates expose the Group to cash flow interest rate risk. The Group regularly reviews its interest
rate exposure. Within this analysis consideration is given to the potential renewals of existing positions, alternative financing,
alternative hedging positions and the mix of fixed and variable interest rates. There is no intention at this stage to enter into any
interest rate swaps.
Capital risk management
The Group’s and the parent entity’s objectives when managing capital are to safeguard their ability to continue as a going concern,
so that they can continue to provide returns for shareholders and benefits for other stakeholders and to maintain a capital structure
that is appropriate for the Group’s current and/or projected financial position. In order to maintain or adjust the capital structure, the
Group may adjust the amount of dividends paid to shareholders (if any), returns of capital to shareholders, buybacks of its shares, the
issue of new shares, the level of borrowing from financiers or the sale of assets to reduce debt.
The Group monitors the adequacy of capital by analysing cash flow forecasts over the term of the LOM for each of its projects. To a
lesser extent, gearing ratios are also used to monitor capital. Appropriate capital levels are maintained to ensure that all approved
expenditure programs are adequately funded. This funding is derived from an appropriate combination of debt and equity. The
gearing ratio at 31 December 2022 is 8% (31 December 2021: 50%). The Group is not subject to any externally imposed capital
management requirements.
The gearing ratio is calculated as net debt divided by total capital. Net debt is defined as interest bearing liabilities less cash, cash
equivalents and market value of bullion on hand. Total capital is calculated as ‘equity’ as shown in the Consolidated Statement
of Financial Position (including non‐controlling interest) plus net debt. The following table summarises the post-tax effect of the
sensitivity of the Group’s cash and debt items on profit and equity at reporting date to movements that are reasonably possible in
relation to interest rate risk and foreign exchange currency risk.
Carrying
Amount
$’000
80,873
125,116
31 December 2022
Cash
Interest bearing liabilities
Total (decrease)/increase
31 December 2021
Cash
67,607
Interest bearing liabilities
316,705
Total (decrease)/increase
Interest rate risk(1)
Foreign exchange risk(2)
-1%
+1%
-10%
+10%
Profit
$’000
Equity
$’000
Profit
$’000
Equity
$’000
Profit
$’000
Equity
$‘000
Profit
$’000
Equity
$‘000
(484)
(484)
876
392
(122)
479
357
876
392
(122)
479
357
484
(876)
(392)
122
(479)
(357)
484
(876)
(392)
5,213
5,213
(4,265)
(4,265)
(6,222)
(6,222)
(1,009)
(1,009)
5,091
826
5,091
826
122
5,218
5,218
(5,218)
(5,218)
(479)
(21,389)
(21,389)
21,389
21,389
(357)
(16,171)
(16,171)
16,171
16,171
(1) The above analysis principally relates to the risks associated with movements in the 3-month US Dollar London Interbank Offered Rate.
(2) The above analysis principally relates to the risks associated with movements in the Australian dollar against the US dollar.
89
Financial Report RESOLUTE MINING LIMITED 2022 ANNUAL REPORT NOTES TO THE FINANCIAL STATEMENTS
for the year ended 31 December 2022
D: Other assets and liabilities
IN THIS SECTION
Other assets and liabilities position at the end of the reporting year.
D.1 Receivables
Trade and other receivables
Taxation receivables(1)
Total receivables
(1) The taxation receivables primarily relate to indirect taxes.
31 December 2022
$’000
31 December 2021
$’000
37
48,756
48,793
441
27,371
27,812
The Tax receivables balance includes a receivable of $12.1 million (31 December 2021: $9.0 million) in relation to VAT paid by the Syama
operation and a VAT receivable of $34.9 million (31 December 2021: $10.1 million) relating to the Mako operation (“Mako VAT”). The
Mako VAT represents the VAT which would be payable (and then refundable) in the event the Company is unsuccessful in extending
the tax exoneration by an additional two years to July 2023. The remainder of the balance relates to Australian Goods and services tax
(GST) amounts. Resolute continues to work with its legal and tax advisors to contest the position taken by the Senegalese and Malian
Authorities. Refer to Note D.5.
The credit quality of receivables can be assessed by reference to external credit ratings (if available) or to historical information about
counterparty default rates:
Counterparties with external credit ratings
AA+
Counterparties without external credit ratings(1)
Group 1
Group 2
Total receivables
31 December 2022
$’000
31 December 2021
$’000
52
37
34,912
13,829
48,793
10,144
17,631
27,812
(1) Group 1 refers to existing counterparties with no defaults in the past. Group 2 refers to existing counterparties where difficulty in recovering these debts in the past has
been experienced.
Recognition and measurement
Trade receivables are initially recognised at fair value and subsequently at amortised cost less a provision for any expected credit
losses. Trade receivables are due for settlement no more than 30 days from the date of recognition.
Tax receivables are considered statutory in nature and therefore not accounted for as financial assets under AASB 9. Taxation
receivables are initially recognised and subsequently measured at amortised cost.
Fair value and foreign exchange risk
The carrying amount of receivables determines their approximate fair value. The Group always recognises the lifetime expected credit
loss for trade receivables carried at amortised cost. The expected credit losses on these financial assets are estimated based on
the Group’s historic credit loss experience, adjusted for factors that are specific to the debtors, general economic conditions and an
assessment of both the current as well as forecast conditions at the reporting date.
For all other receivables measured at amortised cost, the Group recognises lifetime expected credit losses when there has been a
significant increase in credit risk since initial recognition. If the credit risk on the financial instrument has not increased significantly
since initial recognition, the Group measures the loss allowance for the financial instrument at an amount equal to expected credit
losses within the next 12 months.
90
Financial ReportRESOLUTE MINING LIMITED 2022 ANNUAL REPORT D.2 Inventories
Current
Ore stockpiles
- At cost
- At net realisable value
Total current ore stockpiles
Gold in circuit - at cost
Gold in circuit - at net realisable value
Gold bullion on hand - at cost
Gold bullion on hand - at net realisable value
Consumables at net realisable value
Total inventory (current)
Non Current
Ore stockpiles - at cost
Ore stockpiles - at net realisable value
Gold in circuit - at net realisable value
Total inventory (non current)
NOTES TO THE FINANCIAL STATEMENTS
for the year ended 31 December 2022
31 December 2022
$’000
31 December 2021
$’000
27,223
28 , 286
55,509
4,186
373
10,276
-
76,086
146,430
1,959
3,279
37,196
42,434
47,054
6, 381
53,435
22,353
1,503
15,697
1,722
61,879
156,589
1,935
6,559
45,424
53,918
Recognition and measurement
Finished goods (bullion), gold in circuit and stockpiles of unprocessed ore are stated at the lower of cost and estimated net realisable
value. Cost comprises of direct materials, direct labour and an appropriate proportion of variable and fixed overhead expenditure,
the latter being allocated on the basis of normal operating capacity. Costs are assigned to ore stockpiles and gold in circuit items of
inventory on the basis of weighted average costs. Net realisable value is the estimated selling price in the ordinary course of business
(excluding derivatives) less the estimated costs of completion and the estimated costs necessary to make the sale. Inventory
write offs and net realisable value movements are presented in the Statement of Comprehensive Income in “inventories write off
and net realisable value movements” as these are non-cash and do not relate to cost of production for gold sales during the year.
Consumables have been valued at cost less an appropriate provision for obsolescence.
91
Financial Report RESOLUTE MINING LIMITED 2022 ANNUAL REPORT
NOTES TO THE FINANCIAL STATEMENTS
for the year ended 31 December 2022
D.3 Other financial assets and liabilities
Financial assets at fair value through other comprehensive income (current)
Shares at fair value – listed
Other financial assets (current)
Environmental bond – restricted cash (face value approximates fair value)
Restricted cash
Environmental bond – restricted cash (face value approximates fair value)
31 December 2022
$’000
31 December 2021
$’000
-
20,828
1,406
-
1,406
518
8,925
9,443
Recognition and measurement
Financial assets at fair value through other comprehensive income
These financial assets consist of investments in ordinary shares, comprising principally of marketable equity securities. Investments
are initially recognised at fair value plus transaction costs. Unrealised gains and losses arising from changes in the fair value of these
investments are recognised in equity in the net unrealised gain/(loss) reserve. Amounts recognised are not recycled to the statement
of comprehensive income in future years.
The fair value of the listed securities are based on quoted market prices and accordingly is a Level 1 measurement basis on the fair
value hierarchy.
Use of derivative instruments to assist in managing gold price risk
As part of the Group’s risk management practices, selected financial instruments (such as gold forward sales contracts, gold
call options and gold put options) may be used from time to time to reduce the impact a declining gold price has on project life
revenue streams. Within this context, the programs undertaken are project specific and structured with the objective of retaining
as much upside to the gold price as possible, and in any event, limiting derivative commitments to no more than 10% of the Group’s
gold reserves. The value of these financial instruments at any given point in time, will in times of volatile market conditions, show
substantial variation over the short term. The hedging facilities provided by the Group’s counterparties do not contain margin calls.
The Group did not hedge account for these instruments as they are out of scope of AASB 9.
D.4 Payables
Trade creditors
Accruals
Total payables
31 December 2022
$’000
31 December 2021
$’000
28,937
34,763
63,700
34,267
57,275
91,542
Recognition and measurement
Liabilities for trade creditors and other amounts are carried at amortised cost which is the amount initially recognised, minus
repayments whether or not billed to the consolidated entity.
Payables to related parties are carried at the principal amount. Interest, when charged by the lender, is recognised as an expense on
an accruals basis. Payables are non-interest bearing and generally settled on 30-90 day terms. Due to the short-term nature of these
payables, their carrying value is assumed to approximate their fair value.
92
Financial ReportRESOLUTE MINING LIMITED 2022 ANNUAL REPORT D.5 Provisions
Current
Site restoration
Employee entitlements
Dividend payable
Provision for indirect taxes
Other provisions
Total provisions (current)
Non Current
Site restoration
Employee entitlements
Total provisions (non current)
NOTES TO THE FINANCIAL STATEMENTS
for the year ended 31 December 2022
31 December 2022
$’000
31 December 2021
$’000
1,220
4,336
136
92,936
1,749
100,377
70,874
670
71,544
1,795
2,511
150
50,381
2,328
57,165
72,172
1,252
73,424
Resolute’s subsidiaries SOMISY (Mali) and PMC (Senegal), have received demands for payment to the Local Tax Authorities in
relation to income tax and indirect tax for the years ended 31 December 2015 to 2022. At 31 December 2022 the total provision for
indirect taxes has increased from $50.4 million to $92.9 million.
This increase is largely due to an additional $37.6 million associated with the potential reduction in the Mako tax exoneration period to
5 years. This amount relates to provisions for customs duties and VAT. Whilst these amounts are recognised as provisions, Resolute is
firmly of the view that it has complied with all the requirements for the extension of the tax exoneration to 7 years and will continue to
work with the Senegalese authorities to resolve this matter.
The remainder of the increase relates to an additional $4.6 million of indirect tax provisions in Mali based on government demands
received, with a provision recognised in line with the requirements of relevant accounting standards. Resolute continues to challenge
the factual basis and validity of these demands which are strongly disputed due to fundamental misinterpretations of the application
of certain taxes. Resolute continues to work with its legal and tax advisors to contest the positions taken by the Authorities.
The note above includes an approximate $1.45 million provision relating to an open SOMIFI legal matter. This matter relates to a
payment due from the Company if a production decision was made for one of its exploration tenements. Although no production
decision has been made, a Malian court has issued a judgement against SOMIFI regarding this payment. The claimant has sought
enforcement of the payment.
Given the lack of merit in the underlying claim, the Company is disputing this Judgement and has lodged an appeal in the Commercial
Court of Abidjan (which has supervisory jurisdiction). The Company remains confident that it will be able to resolve this matter.
Recognition and measurement
Provisions are recognised when the Group has a present obligation as a result of a past event, it is probable that an outflow of
resources embodying economic benefits will be required to settle the obligation, and a reliable estimate can be made of the amount
of the obligation. If the effect of the time value of money is material, provisions are determined by discounting the expected future
cash flows at a pre-tax rate that reflects current market assessments of the time value of money and, where appropriate, the risks
specific to the liability. Where discounting is used, the increase in the provision due to the passage of time is recognised as a
borrowing cost.
Employee benefits
The Group does not expect its long service leave or annual leave benefits to be settled wholly within 12 months of each reporting
date. The Group recognises a liability for long service leave and annual leave measured as the present value of expected future
payments to be made in respect of services provided by employees up to the reporting date. Consideration is given to expected
future wage and salary levels, experience of employee departures, and years of service. Expected future payments are discounted
using market yields at the reporting date on high quality corporate bonds with terms to maturity and currencies that match, as closely
as possible, the estimated future cash outflows.
Restoration obligations
The Group records the present value of the estimated cost of obligations, such as those under the consolidated entity’s Environmental
Policy, to restore operating locations in the year in which the obligation is incurred. The nature of restoration activities includes
dismantling and removing structures, rehabilitating mines, dismantling operating facilities, closure of plant and waste sites and
restoration, reclamation and revegetation of affected areas.
93
Financial Report RESOLUTE MINING LIMITED 2022 ANNUAL REPORT NOTES TO THE FINANCIAL STATEMENTS
for the year ended 31 December 2022
D.5 Provisions (continued)
Site restoration
Balance at the beginning of the year
Rehabilitation and restoration provision accretion
Change in scope of restoration provision
Utilised during the year
Foreign exchange translation
Balance at the end of the year
Reconciled as:
Current provision
Non current provision
Total provision
Key estimates and judgements
31 December 2022
$’000
31 December 2021
$’000
73,967
1,047
(996)
(630)
(1,294)
72,094
1,220
70,874
72,094
71,687
609
4,267
(951)
(1,645)
73,967
1,795
72,172
73,967
Restoration
In determining an appropriate level of provision, consideration is given to the expected future costs to be incurred, the timing of these
expected future costs (largely dependent on the life of the mine), and the estimated future level of inflation. The discount rate used
in the calculation of these provisions is consistent with the risk-free rate. The ultimate cost of decommissioning and restoration is
uncertain, and costs can vary in response to many factors including changes to the relevant legal requirements, the emergence of
new restoration techniques or experience at other mine sites. The expected timing of expenditure can also change, for example in
response to changes in reserves or to production rates. Changes to any of the estimates could result in significant changes to the
level of provisioning required, which would in turn impact future financial results.
94
Financial ReportRESOLUTE MINING LIMITED 2022 ANNUAL REPORT NOTES TO THE FINANCIAL STATEMENTS
for the year ended 31 December 2022
D.6 Leases
The Group has lease contracts for various items of mining equipment and buildings used in its operations. Leases of mining
equipment generally have lease terms between three and seven years, while buildings generally have lease terms between three and
five years. Generally, the Group is restricted from assigning and subleasing the leased assets.
The Group also has certain contracts which contain a lease with terms of 12 months or less and contracts which contain a lease of
low value. The Group applies the ‘short-term lease’ and ‘lease of low-value assets’ recognition exemptions for these.
31 December 2022
Lease assets
At 1 January 2022
Additions
Depreciation
Foreign currency translation
Balance at the end of the year
At 31 December 2022
Historical cost
Accumulated depreciation
Net carrying amount
Lease liabilities
At 1 January 2022
Additions
Repayments
Accretion of interest
Foreign currency translation
Balance at the end of the year
At 31 December 2022
Current
Non current
Net carrying amount
Buildings
$’000
Plant and
Equipment
$’000
1,057
1,137
(550)
(35)
1,609
3,839
(2,230)
1,609
1,219
1,137
(614)
39
(71)
1,710
645
1,065
1,710
6,651
7,371
(1,904)
(274)
11,844
36,422
(24,578)
11,844
9,858
7,371
(3,084)
447
(393)
14,199
2,728
11,471
14,199
Total
$’000
7,708
8,508
(2,454)
(309)
13,453
40,261
(26,808)
13,453
11,077
8,508
(3,698)
486
(464)
15,909
3,373
12,536
15,909
95
Financial Report RESOLUTE MINING LIMITED 2022 ANNUAL REPORT
NOTES TO THE FINANCIAL STATEMENTS
for the year ended 31 December 2022
D.6 Leases (continued)
31 December 2021
Lease assets
At 1 January 2021
Additions
Lease remeasurements
Depreciation
Impairment
Foreign currency translation
Balance at the end of the year
At 31 December 2021
Historical cost
Accumulated depreciation
Net carrying amount
Lease liabilities
At 1 January 2021
Additions
Lease remeasurements
Repayments
Accretion of interest
Foreign currency translation
Balance at the end of the year
At 31 December 2021
Current
Non current
Net carrying amount
Buildings
$’000
Plant and
Equipment
$’000
1,691
-
-
(601)
(28)
(5)
1,057
2,836
(1,779)
1,057
1,895
-
-
(672)
75
(79)
1,219
548
671
1,219
20,827
8,438
(10,905)
(8,210)
(3,090)
(409)
6,651
39,240
(32,589)
6,651
21,712
8,135
(10,744)
(9,381)
785
(649)
9,858
2,443
7,415
9,858
Total
$’000
22,518
8,438
(10,905)
(8,811)
(3,118)
(414)
7,708
42,076
(34,368)
7,708
23,607
8,135
(10,744)
(10,053)
860
(728)
11,077
2,991
8,086
11,077
Maturity profile of lease liabilities
The table below presents the contractual undiscounted cash flows associated with the Group’s lease liabilities, representing principal
and interest. The figures will not necessarily reconcile with the amounts disclosed in the consolidated statement of financial position.
31 December 2022
$’000
31 December 2021
$’000
4,299
3,848
3,421
860
796
6,216
19,440
3,421
1,317
849
642
642
7,227
14,098
Due for payment in:
1 year or less
1-2 years
2-3 years
3-4 years
4-5 years
More than 5 years
Total
96
Financial ReportRESOLUTE MINING LIMITED 2022 ANNUAL REPORT
NOTES TO THE FINANCIAL STATEMENTS
for the year ended 31 December 2022
D.6 Leases (continued)
Key estimates and judgements
Incremental borrowing rate
The Group cannot readily determine the interest rate implicit in its leases. Therefore, it uses the relevant incremental borrowing
rate (IBR) to measure lease liabilities. The IBR is the rate of interest that the lessee would have to pay to borrow over a similar term
and with a similar security, the funds necessary to obtain an asset of a similar value to the right-of-use asset in a similar economic
environment. The IBR, therefore, reflects what the lessee would have to pay, which requires estimation when no observable rates are
available and to make adjustments to reflect the terms and conditions of the lease. Lease liabilities were discounted using a weighted
average incremental borrowing rate for December 2022 of 8.1% (December 2021: 4.2%).
D.7 Derivative Financial Liabilities
31 December 2022
$’000
31 December 2021
$’000
Current
Liabilities at fair value through profit and loss
1,546
-
During 2022, the Group entered into zero-cashflow collar contracts whereby the Group purchased a total of 12,000 ounces of gold call
options and sold a total of 12,000 ounces of gold put options contracts with equal and offsetting values at inception. These contracts
are comprised of put options at an average of $1,600/oz and call options at an average of $1,873/oz. All of these contracts were
outstanding at 31 December 2022 and mature over the period January to March 2024. The gold zero-cashflow collars are classified as
level 2 in the fair value hierarchy valued at $1.5m. These zero-cashflow collar contracts are valued using valuation techniques, which
employ the use of market observable inputs. The most frequently applied valuation techniques include forward pricing using present
value calculations.
Key financial risks associated with other assets and liabilities
Interest rate risk, diesel price risk and foreign exchange risk management
Refer to About this Report and Section C for details of how these risks are managed.
Credit risk management
The Group’s exposure to credit risk arises from potential default of the counterparty, with a maximum exposure equal to the carrying
amount of the financial assets.
Credit risk is managed on a Group basis. Credit risk predominately arises from cash, cash equivalents (refer to C.1), gold bullion held
in metal accounts, derivative financial instruments, deposits with banks and financial institutions and receivables from statutory
authorities. For derivative financial instruments, management mitigates some credit risk by using a number of different hedging
counterparties. Credit risk further arises in relation to financial guarantees given to certain parties. Such guarantees are only provided
in exceptional circumstances and are subject to Audit and Risk Committee approval. With the exception of those items disclosed
in C.3, no guarantees have been provided to third parties as at the reporting date. The credit quality of financial assets that are
neither past due nor impaired can be assessed by reference to external credit ratings (if available) or to historical information about
counterparty default rates.
With respect to credit risk arising from other financial assets for the Group, which comprise financial instruments, asset sale
receivables (refer to E.1) and contingent receivables (refer to E.1), the Group’s exposure to credit risk arises from default of the
counterparty, with a maximum exposure equal to the carrying amount of these instruments. The Group limits its counterparty credit
risk on these assets by dealing only with financial institutions with credit ratings of at least B or equivalent.
97
Financial Report RESOLUTE MINING LIMITED 2022 ANNUAL REPORT NOTES TO THE FINANCIAL STATEMENTS
for the year ended 31 December 2022
D.8 Financial Instruments
Foreign exchange risk management
The following table summarises the sensitivity to a reasonably possible change in foreign exchange rates with all other variables
held constant:
31 December 2022
Loans to subsidiaries
Payables
Total increase/(decrease)
31 December 2021
Other financial assets
Assets sale receivable
Loans to subsidiaries
Payables
Carrying Amount
$’000
691,630
63,700
29,753
56,495
736,238
91,542
Profit
$’000
62,876
137
63,013
811
5,136
66,931
417
Foreign exchange risk(1)
-10%
+10%
Equity
$‘000
Profit
$’000
Equity
$‘000
62,876
137
63,013
811
5,136
66,931
417
(76,848)
(168)
(77,016)
(992)
(6,277)
(81,804)
(498)
(89,571)
(76,848)
(168)
(77,016)
(992)
(6,277)
(81,804)
(498)
(89,571)
Total increase/(decrease)
73,295
73,295
(1) The above analysis principally relates to the risks associated with movements in the Australian dollar against the US dollar.
98
Financial ReportRESOLUTE MINING LIMITED 2022 ANNUAL REPORT NOTES TO THE FINANCIAL STATEMENTS
for the year ended 31 December 2022
E: Other items
IN THIS SECTION
Information on items which require disclosure to comply with Australian Accounting Standards and the
Corporations Act 2001 (Cth). This section includes group structure information and other disclosures.
E.1 Promissory notes receivable and contingent consideration receivable
On 15 January 2020, Resolute signed a definitive agreement for the sale of the Ravenswood Gold Mine in Queensland to a consortium
comprising of a fund managed by private equity manager EMR Capital and energy and mining company Golden Energy and
Resources Limited. The consideration for the sale comprised A$50.0 million of cash up front, A$50.0 million promissory note and up to
A$200.0 million potential payments. The asset sale was completed on 31 March 2020.
Gold Price Contingent Payment Instrument
A Gold Price Contingent Payment is payable to Resolute 4 years following Financial Close based on the following bands:
• A$10.0m if the average gold price is greater than A$1,900/oz
• A$20.0m if the average gold price is greater than A$1,975/oz
• A$30.0m if the average gold price is greater than A$2,050/oz
• A$40.0m if the average gold price is greater than A$2,075/oz
• A$50.0m if the average gold price is greater than A$2,100/oz.
Payment of the Gold Price Contingent Payment is subject to the cumulative ounces produced from Ravenswood exceeding 500,000oz
of gold over the 4 year period and is subject to adjustment if the production plan adopted by the buyer is reduced or lower than
expected.
For the Gold Price Contingent Payment Instrument, we have assessed the likelihood of the production target being met as well
as the likely weighted average gold price to be achieved over the 4 year period. We have used the following assumptions in the
determination of this variable consideration:
• Resolute assumed that the 500,000oz of gold production over the 4 year period will be met
• Resolute used forecast gold prices submitted by reputable banks and brokerage firms and forecast out to a period of up to 5 years
• Resolute assessed that the occurrence of a liquidity event within the 4 year period to be unlikely.
The Gold Price Contingent Payment Instrument is valued at a net present value of A$20.0 million ($13.6 million) at 31 December 2022
and 31 December 2021, based on the most likely amount method.
The Promissory Note is initially valued at net present value of A$50.0 million ($34.1 million) and subsequently measured at amortised
cost under AASB 9 of A$58.7 million ($40.0 million) as at 31 December 2022.
The Promissory note receivable is classified as level 3 in the fair value hierarchy and has a fair value of A$46.1 million ($31.4 million),
at 31 December 2022.
Financial Instruments
Due after five years
Total contractual receipts
Less future interest charges
Total promissory notes receivable
31 December 2022
$’000
31 December 2021
$’000
51,259
51,259
(11,244)
40,015
54,596
54,596
(14,389)
40,207
99
Financial Report RESOLUTE MINING LIMITED 2022 ANNUAL REPORT NOTES TO THE FINANCIAL STATEMENTS
for the year ended 31 December 2022
E.2 Contingent liabilities
Demand of payment relating to income taxes from the Mali Tax Authorities
Contingent liabilities relate predominantly to possible obligations whose existence will only be confirmed by the occurrence or non-
occurrence of uncertain future events, and therefore the Group has not provided for such amounts in these financial statements.
Resolute’s subsidiaries, SOMISY and SOMIFI, have received demands of $101.0 million for payment of VAT, Income Tax and other
taxes for the years ended 31 December 2015 to 31 December 2021 from the Mali Tax Authorities. Of this total amount demanded $38.5
million has been provided for, refer to Note D.5 for details.
The Group considers that these matters are either not yet sufficiently advanced or substantiated to reasonably evaluate the prospects
for a potential liability. The Group is working with its legal and tax advisors to contest the demands from Mali tax authorities and will
resist any efforts to enforce payment, the expected outflow from any other amounts demanded is expected to be remote.
E.3 Commitments
Other commitments not disclosed elsewhere in this report include:
Randgold/Syama Royalty
Pursuant to the terms of the Syama Sale and Purchase Agreement, Randgold Resources Limited (now Barrick Gold Corporation)
receive a royalty on Syama production, where the gold price exceeds US$350 per ounce, of US$10 per ounce on the first million
ounces of gold production attributable to Resolute Mining Limited and US$5 per ounce on the next three million attributable ounces
of gold production. As at 31 December 2022, Resolute’s 80% attributable share of Syama’s project to date gold production was
1,729,336 ounces of gold, therefore the royalty is currently US$5 per ounce.
Gold contracts
As part of its risk management policy, the Group enters into gold forward contracts to manage the gold price for a proportion of
anticipated sales of gold. As at 31 December 2022, 172,500 ounces were hedged.
The gold forward contracts disclosed below did not meet the criteria of financial instruments for accounting purposes on the basis
that they met the normal purchase/sale exemption because physical gold would be delivered into the contract. Accordingly, the
contracts were accounted for as sale contracts with revenue recognised in the year in which the gold commitment was met.
Gold for Physical
Delivery Ounces
Contracted Gold
Sale Price
per Ounce
Value of
Committed Sales
$’000
155,000
17,500
172,500
$1,890
$1,849
$1,886
292,950
32,358
325,308
Gold for Physical
Delivery Ounces
Contracted Gold
Sale Price
per Ounce
Value of
Committed Sales
’000
168,000
168,000
10,000
10,000
$1,799
€1,530
$302,232
$302,232
€15,300
€15,300
31 December 2022
US$
Within one year
Between one and five years
Total
31 December 2021
US$
Within one year
Total
EURO
Within one year
Total
100
Financial ReportRESOLUTE MINING LIMITED 2022 ANNUAL REPORT
NOTES TO THE FINANCIAL STATEMENTS
for the year ended 31 December 2022
E.4 Auditor remuneration
EY Australia
Total amounts received or due and receivable for an audit or review
of the parents financial statements
EY Australia
Other EY firms
Non-audit fees - EY firms
Other non-EY firms
31 December 2022
$
31 December 2021
$
133,522
80,071
133,532
193,954
109,375
17,045
75,234
80,071
212,332
83,750
-
146,659
Total amounts received or due and receivable for an audit or review
of any controlled entities financial statements
378,563
442,741
E.5 Subsidiaries and non-controlling interests
Material subsidiaries
The following were materially controlled entities during the year and have been included in the consolidated accounts. All entities in
the consolidated entity carry on business in their place of incorporation.
Name of Controlled Entity
and Country of Incorporation
Consolidated Entity
Company Holding the Investment
31 December 2022
%
31 December 2021
%
Percentage of Shares
Held by Consolidated Entity
Bambuk Minerals Limited, Mauritius
Toro Gold Limited
Carpentaria Gold Pty Ltd, Australia
Resolute Mining Limited
Petowal Mining Company S.A., Senegal
Bambuk Minerals Limited
Resolute Corporate Services Pty Ltd, Australia
Resolute (Treasury) Pty Ltd
Resolute Corporate Services UK Limited, UK
Toro Gold Limited
Resolute UK 1 Limited, UK
Resolute UK 2 Limited, UK
Resolute Mining Limited
Resolute UK 1 Limited
Société des Mines de Finkolo S.A., Mali
Resolute (Finkolo) Pty Ltd
Société des Mines de Syama S.A., Mali
Resolute (SOMISY) Pty Ltd
100
100
90
100
100
100
100
90
80
100
100
90
100
100
100
100
90
80
Material partly-owned subsidiaries
Accumulated share of (deficiency)/equity attributable to material
Non-Controlling Interest:
Société des Mines de Syama SA ("SOMISY")
Société des Mines de Finkolo SA ("SOMIFI")
Petowal Mining Company SA ("Mako")
Total Non-Controlling Interest
(Loss)/profit allocated to material Non-Controlling Interest:
SOMISY
Mensin
SOMIFI
Mako
Total Non-Controlling Interest
31 December 2022
$’000
31 December 2021
$’000
(77,412)
(3,538)
9,010
(71,940)
(163)
-
(1,722)
1,303
(582)
(81,668)
(1,904)
12,105
(71,467)
(36,844)
(339)
(5,018)
(6,067)
(48,268)
101
Financial Report RESOLUTE MINING LIMITED 2022 ANNUAL REPORT NOTES TO THE FINANCIAL STATEMENTS
for the year ended 31 December 2022
E.5 Subsidiaries and non-controlling interests (continued)
The summarised financial information of subsidiaries with non-controlling interests is provided below. This information is based on
amounts before inter-company eliminations.
31 December
2022
31 December
2021
31 December
2022
31 December
2021
31 December
2022
31 December
2021
31 December
2022
31 December
2021
$'000
$’000
$’000
$’000
$’000
$’000
$’000
$’000
SOMISY
Mensin
SOMIFI
Mako
Statement of Comprehensive Income
Revenue
(Loss)/gain
for the year
Total
comprehensive
(loss)/income for
the year
350,687
295,418
(3,967)
(148,572)
(26,059)
(98,832)
Summarised Statement of Financial Position
Current assets
221,905
Non current assets
295,899
255,412
307,194
Current Liabilities
(143,749)
(158,700)
Non current
liabilities -
External
Non current
liabilities - Intra
Resolute Mining
Limited Group
Net asset /
(deficiency)
(42,279)
(44,180)
(695,606)
(737,182)
(363,830)
(377,456)
E.6 Subsequent events
-
-
-
-
-
-
-
-
-
-
63,682
32,347
236,760
221,478
(10,378)
(18,388)
(44,018)
4,027
(83,451)
(10,378)
(19,271)
(44,165)
4,470
(83,008)
-
-
-
-
-
-
12,716
20,139
3,708
24,918
76,394
53,301
135,422
144,864
(16,785)
(13,841)
(97,083)
(45,960)
(9,103)
(8,920)
(25,951)
(30,523)
(48,054)
(29,998)
3,739
(10,393)
(41,087)
(24,133)
92,521
111,289
On 19 January 2023, the Group announced that the Syama North Resource estimate increased to 34.0 million tonnes at 2.9g/t for
3.2 million ounces of gold.
On 3 February 2023, the Company announced the appointment of Chris Eger as its new Chief Financial Officer (CFO). Chris commenced
on 27 February 2023. Doug Warden, the incumbent CFO, will remain with the Company until 31 March 2023 to ensure an orderly handover.
E.7 Related party disclosures
Resolute is the ultimate Australian holding company and there is no controlling entity of Resolute at 31 December 2022. No related
party transactions occurred during the period other than payments to KMP as disclosed in E.9.
102
Financial ReportRESOLUTE MINING LIMITED 2022 ANNUAL REPORT NOTES TO THE FINANCIAL STATEMENTS
for the year ended 31 December 2022
E.8 Parent Entity Information
Current assets
Total assets
Current liabilities
Total liabilities
Net assets
Issued capital
Accumulated losses
Reserve
Total shareholders’ equity
Total comprehensive loss of Resolute Mining Limited
31 December 2022
$’000
31 December 2021
$’000
77,242
477,319
(5,825)
(5,825)
471,494
882,731
(469,485)
58,248
471,494
(177,694)
56,931
430,069
(4,509)
(4,509)
425,560
777,021
(435,710)
84,249
425,560
(233,970)
Refer to E.2 for the contingent liabilities and E.3 for the commitments of Resolute. The parent company guarantees provided by
Resolute are outlined in C.3.
E.9 Employee benefits and share-based payments
Salaries
Superannuation
Share-based payments expense
Total employee benefits charged to profit and loss
31 December 2022
$’000
31 December 2021
$’000
47,036
9,942
634
57,612
43,618
8,687
1,423
53,728
Share-based payments
Equity-based compensation benefits are provided to employees via the Group’s share option plan and performance rights plan. The
Group determines the fair value of securities issued and recognises an expense in the profit and loss over the vesting year with a
corresponding increase in equity.
Key management personnel
Details of remuneration provided to key management personnel are as follows:
Short-term employee benefits
Post-employment benefits
Long-term employment benefits
Share-based payments
Total
31 December 2022
$
31 December 2021
$
2,426,172
2,385,966
91,143
(5,905)
(50,053)
2,461,357
87,438
3,696
462,690
2,939,790
Key estimates and judgements
Share-based payments
The Group measures the cost of equity settled share-based payment transactions with reference to the fair value at the grant date
using a Black Scholes formula or Monte Carlo simulation. The valuations take into account the terms and conditions upon which
the instruments were granted such as the exercise price, the term of the option or performance right, the vesting and performance
criteria, the impact of dilution, the non-tradeable nature of the option or performance right, the share price at grant date and expected
price volatility of the underlying share, the expected dividend yield and the risk-free interest rate for the term of the option or
performance right.
103
Financial Report RESOLUTE MINING LIMITED 2022 ANNUAL REPORT
NOTES TO THE FINANCIAL STATEMENTS
for the year ended 31 December 2022
E.9 Employee benefits and share-based payments (continued)
Performance rights plan
Performance Rights Plan Category
Type of employee
Band A0
Managing Director and CEO
Band A1 and A2
CFO
COO
Executive General Manager – Exploration
General Counsel and Company Secretary
Band B1
General Managers
Plan category Grant and frequency
Performance measures
Band A0
Band A1
and A2
Band B1
Annually set at 100%
of fixed remuneration
for the Managing
Director and CEO
The rights will be performance tested against the relative total
shareholder return (“RTSR”) measure over a 3 year period
Annually set at 65% of
fixed remuneration
The rights will be performance tested against the relative total
shareholder return (“RTSR”) measure over a 3 year period
Annually set at 40% of
fixed remuneration
The rights will be performance tested against the relative total
shareholder return (“RTSR”) measure over a 3 year period
3 years
3 years
Performance period
3 years
Issue Date
Total Number
Fair Value per
Right at
Grant Date
A$
Vesting Date
26/10/2018
21/05/2019
22/05/2020
22/05/2020
14/07/2021
13,550
73,377
863,792
194,352
443,716
14/07/2021
1,398,849
06/12/2021
06/12/2021
06/12/2021
211,276
219,942
264,171
22/06/2022
1,958,147
22/06/2022
5,275,334
10,916,506
0.92
0.93
0.85
0.56
0.43
0.57
0.37
0.31
0.32
0.19
0.19
30/06/2021
31/12/2021
31/12/2022
31/12/2022
31/12/2023
31/12/2023
31/12/2023
31/12/2023
31/12/2023
31/12/2024
31/12/2024
Performance rights on issue
Band A1 and A2
Band A1 and A2
Band A1 and A2
Band A0
Band A0
Band A1, A2 and B1
Band B1
Band B1
Band A1 and A2
Band A0
Band A1, A2 and B1
As at 31 December 2022
104
Financial ReportRESOLUTE MINING LIMITED 2022 ANNUAL REPORT NOTES TO THE FINANCIAL STATEMENTS
for the year ended 31 December 2022
E.9 Employee benefits and share-based payments (continued)
Issue Date
Total Number
Fair Value
per Right at
Grant Date
A$
Vesting Date
Opening number of performance rights
7,742,733
Decrease through lapsing of performance rights (Band A1 and A2)
06/05/2022
(264,343)
0.85
31/12/2022
Decrease through lapsing of performance rights (Band A0)
06/05/2022
(904,892)
0.57
31/12/2023
Decrease through lapsing of performance rights (Band A0)
06/05/2022
(1,000,000)
0.48
31/03/2024
Decrease through lapsing of performance rights (Band A1 and A2)
09/05/2022
(815,967)
0.93
31/12/2021
Decrease through lapsing of performance rights (Band A0)
09/05/2022
(320,233)
0.88
31/12/2021
Decrease through lapsing of performance rights (Band A1 and A2)
09/05/2022
(32,751)
0.78
31/12/2021
Increase through issue of performance rights to eligible employees
(Band A0)
22/06/2022
1,958,147
0.19
31/12/2024
Increase through issue of performance rights to eligible employees
(Band A1, A2 and B1)
22/06/2022
6,558,229
0.19
31/12/2024
Decrease through conversion of shares upon vesting of
performance rights (Band A1 to A2)
Decrease through conversion of shares upon vesting of
performance rights (Band A1 to A2)
Decrease through conversion of shares upon vesting of
performance rights (Band A1 to A2)
28/06/2022
(22,011)
0.92
30/06/2021
28/06/2022
(267,224)
0.93
31/12/2021
28/06/2022
(10,917)
0.78
31/12/2021
Decrease through lapsing of performance rights (Band A1 and A2)
12/08/2022
(59,822)
0.85
31/12/2022
Decrease through lapsing of performance rights (Band A1, A2 and B1)
12/08/2022
(77,865)
0.57
31/12/2023
Decrease through lapsing of performance rights (Band A1 and A2)
16/11/2022
(18,666)
0.85
31/12/2022
Decrease through lapsing of performance rights (Band A1, A2 and B1)
16/11/2022
(226,885)
0.57
31/12/2023
Decrease through lapsing of performance rights (Band A1, A2 and B1)
16/11/2022
(1,282,895)
0.19
31/12/2024
Decrease through conversion of shares upon vesting of
performance rights (Band A1 to A2)
23/12/2022
(38,132)
0.93
31/12/2021
Closing number of performance rights
10,916,506
105
Financial Report RESOLUTE MINING LIMITED 2022 ANNUAL REPORT
NOTES TO THE FINANCIAL STATEMENTS
for the year ended 31 December 2022
E.9 Employee benefits and share-based payments (continued)
The following tables list the key variables used in the valuation of each performance rights granted to key management personnel
during the year ended 31 December 2022:
22 June 2022 Grant
Band A0
22 June 2022 Grant
Band A1, A2 and B1
Hurdle
Number of performance rights issued
Underlying share price (A$)
Exercise price (A$)
Risk free rate
Volatility factor
Dividend yield
Period of the rights from grant date (years)
RTSR rights
1,958,147
0.28
-
0.79%
58.3%
0.91%
3.00
RTSR rights
6,558,229
0.28
-
0.79%
58.3%
0.91%
3.00
Effect of performance hurdles
Fair value of performance rights granted
Value of performance right at grant date (Band A0)
Value of performance right at grant date (Band A1, A2 and B1)
$0.19
$0.19
The following tables list the key variables used in the valuation of each performance rights granted to key management personnel
during the year ended 31 December 2021:
Hurdle
RTSR rights
RTSR rights
RTSR rights
Strategic
objectives rights
RTSR
rights
1 January 2021
Grant
20 February 2021
Grant
4 May 2021
Grant
14 May 2021
Grant
Number of performance rights issued
1,703,599
443,716
904,892
500,000
500,000
Underlying share price (A$)
Exercise price (A$)
Risk free rate
Volatility factor
Dividend yield
Period of the rights from grant date (years)
0.84
-
0.09%
53.0%
1.91%
3.00
0.64
-
0.09%
53.0%
1.91%
2.86
0.84
-
0.09%
53.0%
1.91%
2.64
0.59
-
0.09%
53.0%
1.91%
2.88
0.59
-
0.09%
53.0%
1.91%
2.88
Hurdle
RTSR rights
RTSR rights
RTSR rights
1 July 2021 Grant
30 August 2021 Grant
1 September 2021 Grant
Number of performance rights issued
Underlying share price (A$)
Exercise price (A$)
Risk free rate
Volatility factor
Dividend yield
Period of the rights from grant date (years)
211,276
0.54
-
0.13%
53.0%
0.93%
2.50
264,171
0.46
-
0.08%
53.0%
0.93%
2.34
219,942
0.46
-
0.10%
53.0%
0.93%
2.33
106
Financial ReportRESOLUTE MINING LIMITED 2022 ANNUAL REPORT NOTES TO THE FINANCIAL STATEMENTS
for the year ended 31 December 2022
E.9 Employee benefits and share-based payments (continued)
Effect of performance hurdles
Fair value of performance rights granted (A$)
Value of performance right at grant date (Band A0)
Value of performance right at grant date (Band A0)
Value of performance right at grant date (Band A1 and A2)
Value of performance right at grant date (Band A1, A2 and B1)
Value of performance right at grant date (Band B1)
Value of performance right at grant date (Band B1)
Value of performance right at grant date (Band A1 and A2)
0.48
0.57
0.43
0.57
0.37
0.31
0.32
E.10 Restatement of comparative information
During 2022, the Group identified information that resulted in a restatement to the prior periods. The impact on previously reported
amounts is summarised in the tables below, with the restatement only affecting amounts presented in the Consolidated Statement of
Financial Position.
$’000
Total current assets
Income tax asset
Total non current assets
Total assets
Total liabilities
Net assets
Equity attributable to equity holders of the parent
Contributed equity
Reserves
Retained earnings
Total equity attributable to equity holders of the parent
Non-controlling interest
Total equity
31 December 2021
As Reported
Restatement
31 December 2021
Restated
351,642
-
351,642
18,273
632,559
984,201
558,641
425,560
777,021
(3,706)
(277,682)
495,633
(70,073)
425,560
(6,970)
(6,970)
(6,970)
-
(6,970)
-
-
(5,576)
(5,576)
(1,394)
(6,970)
11,303
625,589
977,231
558,641
418,590
777,021
(3,706)
(283,258)
490,057
(71,467)
418,590
The decrease in net assets at 31 December 2021 is due to the derecognition of income tax asset for the Syama operation in Mali.
A reduction of CFA 4.271 billion ($6.9 million) was recorded on the basis that this amount did not meet the recognition criteria
for a tax asset at 30 June 2018 and should have been recognised in the Consolidated Statement of Comprehensive Income as
a tax expense.
At 1 January 2021, this resulted in the reduction of the income tax assets of $6.9 million, a reduction in retained earnings of
$5.6 million and a reduction in Non-controlling interest of $1.4 million.
107
Financial Report RESOLUTE MINING LIMITED 2022 ANNUAL REPORT NOTES TO THE FINANCIAL STATEMENTS
for the year ended 31 December 2022
E.11 Other accounting policies
New and amended Accounting Standards and Interpretations issued but not yet effective
A number of new Standards, amendment of Standards and interpretations have recently been issued but are not yet effective and
have not been adopted by the Group as at the financial reporting date. The potential effect of these Standards is yet to be fully
determined. However, it is not expected that the new or amended standards will significantly affect the Group’s accounting policies,
financial position or performance, except for the following:
Title
Application Date for Group
Detail
1 January 2024
Classification of
Liabilities as Current
or Non-current -
Amendments to IAS 1
1 January 2023
Disclosure of
Accounting Policies -
Amendments to IAS
1 and IFRS Practice
Statement 2
Definition of Ac-
counting Estimates -
Amendments to IAS 8
1 January 2023
In January 2020 and October 2022, the IASB issued amendments to para-
graphs 69 to 76 of AASB 101 to specify the requirements for classifying liabil-
ities as current or non-current. The amendments clarify:
• what is meant by a right to defer settlement
• that a right to defer must exist at the end of the reporting year
• that classification is unaffected by the likelihood that an entity will exercise
its deferral right
• that only if an embedded derivative is a convertible liability is itself an
equity instrument would the terms of a liability not impact its classification.
The Group is currently assessing the impact the amendments will have
on current practice and whether existing loan agreements may require
renegotiation.
In February 2021, the Board issued amendments to IAS 1 and IFRS Practice
Statement 2 Making Materiality Judgements (the PS), in which it provides
guidance and examples to help entities apply materiality judgements to
accounting policy disclosures.
The amendments aim to help entities provide accounting policy disclosures
that are more useful by:
• Replacing the requirement for entities to disclose their ‘significant’
accounting policies with a requirement to disclose their ‘material’
accounting policies
• Adding guidance on how entities apply the concept of materiality in
making decisions about accounting policy disclosures
The Group is currently assessing the impact the amendments will
have on current practice and whether existing loan agreements may
require renegotiation
In February 2021, the Board issued amendments to IAS 8, in which it
introduces a new definition of ‘accounting estimates’.
The amendments clarify the distinction between changes in accounting
estimates and changes in accounting policies and the correction of errors.
Also, they clarify how entities use measurement techniques and inputs to
develop accounting estimates. The amendments are not expected to
have a material impact on the Group.
Lease Liability in a
Sale and Leaseback
– Amendments to
IFRS 16
1 January 2024
In September 2022, the Board issued Lease Liability in a Sale and Lease-
back (Amendments to IFRS 16).
The amendment to IFRS 16 specifies the requirements that a seller-lessee
uses in measuring the lease liability arising in a sale and leaseback transac-
tion, to ensure the seller-lessee does not recognise any amount of the gain
or loss that relates to the right of use it retains. The amendments are not
expected to have a material impact on the Group.
108
Financial ReportRESOLUTE MINING LIMITED 2022 ANNUAL REPORT DIRECTORS’ DECLARATION
In accordance with a resolution of the directors of Resolute Mining Limited, we state that:
In the opinion of the directors:
a. the financial statements and notes of the consolidated entity are in accordance with the Corporations Act 2001, including:
i. giving a true and fair view of the consolidated entity’s financial position as at 31 December 2022 and of its performance
for the year ended on that date; and,
ii. complying with Australian Accounting Standards (including the Australian Accounting Interpretations) and the
Corporations Regulations 2001;
b. the financial statements and notes also comply with International Financial Reporting Standards as disclosed throughout this
report; and
c. there are reasonable grounds to believe that the Company will be able to pay its debts as and when they become due and payable.
This declaration has been made after receiving the declarations required to be made to the directors in accordance with section 295A
of the Corporations Act 2001 for the year ended 31 December 2022.
On behalf of the Board
Terry Holohan
Managing Director and Chief Executive Officer
Perth, Western Australia
29 March 2023
109
Financial Report RESOLUTE MINING LIMITED 2022 ANNUAL REPORT
Ernst & Young
11 Mounts Bay Road
Perth WA 6000 Australia
GPO Box M939 Perth WA 6843
Tel: +61 8 9429 2222
Fax: +61 8 9429 2436
ey.com/au
Independent auditor's report to the members of Resolute Mining Limited
Report on the audit of the financial report
Opinion
We have audited the financial report of Resolute Mining Limited (the Company) and its subsidiaries
(collectively the Group), which comprises the consolidated statement of financial position as at 31
December 2022, the consolidated statement of comprehensive income, consolidated statement of
changes in equity and consolidated cash flow statement for the year then ended, notes to the financial
statements, including a summary of significant accounting policies, and the directors’ declaration.
In our opinion, the accompanying financial report of the Group is in accordance with the Corporations
Act 2001, including:
a. Giving a true and fair view of the consolidated financial position of the Group as at 31 December
2022 and of its consolidated financial performance for the year ended on that date; and
b. Complying with Australian Accounting Standards and the Corporations Regulations 2001.
Basis for opinion
We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under
those standards are further described in the Auditor’s responsibilities for the audit of the financial
report section of our report. We are independent of the Group in accordance with the auditor
independence requirements of the Corporations Act 2001 and the ethical requirements of the
Accounting Professional and Ethical Standards Board’s APES 110 Code of Ethics for Professional
Accountants (including Independence Standards) (the Code) that are relevant to our audit of the
financial report in Australia. We have also fulfilled our other ethical responsibilities in accordance with
the Code.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis
for our opinion.
Key audit matters
Key audit matters are those matters that, in our professional judgment, were of most significance in
our audit of the financial report of the current year. These matters were addressed in the context of
our audit of the financial report as a whole, and in forming our opinion thereon, but we do not provide
a separate opinion on these matters. For each matter below, our description of how our audit
addressed the matter is provided in that context.
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Financial ReportRESOLUTE MINING LIMITED 2022 ANNUAL REPORT
2
We have fulfilled the responsibilities described in the Auditor’s responsibilities for the audit of the
financial report section of our report, including in relation to these matters. Accordingly, our audit
included the performance of procedures designed to respond to our assessment of the risks of
material misstatement of the financial report. The results of our audit procedures, including the
procedures performed to address the matters below, provide the basis for our audit opinion on the
accompanying financial report.
1.
Physical existence and valuation of ore stockpiles, gold in circuit and gold
inventories
Why significant
How our audit addressed the key audit matter
At 31 December 2022 the Group had ore
stockpiles, gold in circuit and gold inventories of
$112,778,000 (refer to Note D.2 to the financial
report).
Significant to the determination of the carrying
value of ore stockpiles and gold in circuit
inventories is the cost and net realisable value
assumptions adopted by the Group in measuring
the ore stockpiles and gold in circuit and the
determination of the physical existence of the
ore stockpiles (tonnes) and gold in circuit
(ounces).
We considered this to be a key audit matter
because of the:
►
►
►
Significant judgment required to assess the
quantity and recoverable metal content
within both the stockpiles and gold in
circuit. This includes determination of
estimated grades, recovery rates and other
geophysical properties.
Significant estimates and judgments
involved in the valuation of ore stockpiles
and gold in circuit including the allocation
of operating costs to various stock types
included in ore stockpiles and gold in circuit
inventories.
Significant estimates involved in the
determination of the net realisable value of
ore stockpiles and gold in circuit, including
the selling price in the ordinary course of
business and estimated costs of completion
necessary to make the sale.
Our audit procedures included the following:
► Obtained an understanding of the Group’s processes and
controls in place for determining the physical quantities
and metal contents of stockpiles and gold in circuit,
which included observation of the year-end stockpile
surveys at the Syama and Mako mine sites.
► Assessed the qualifications, competence and objectivity
of the Group’s internal experts involved in determining
the quantity and recoverable metal content for ore
stockpiles and gold in circuit.
► Agreed the estimated grades, recovery rates and other
geophysical properties against the underlying reports
prepared by the Group’s internal experts and assessed
the reasonableness of this information based on the
current operations.
► Assessed the accuracy of the inventory valuation models
including assessing the nature and completeness of
costs allocated to inventories in determining the unit
cost of inventories.
► Assessed the carrying value of inventories at 31
December 2022 to evaluate whether they were valued
at the lower of cost and net realisable value. This
included evaluating the assumptions and methodologies
used by the Group, in particular those relating to the
forecast gold price, costs to complete and gold
recoveries.
►
Evaluated the adequacy of the Group’s disclosures in the
Notes to the financial report.
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Financial Report RESOLUTE MINING LIMITED 2022 ANNUAL REPORT
3
2.
Impairment assessment of non-current assets
Why significant
How our audit addressed the key audit matter
At 31 December 2022, the Group had non-
current assets of $470,309,000 comprising
capitalised development expenditure, property,
plant and equipment and right of use assets
(refer to Notes B.1 and D.6 to the financial
report).
At the end of each reporting period, the Group
exercises judgment in determining whether
there is any indication of impairment of these
assets. If any such indicators exist, the Group
estimates the recoverable amount of the
applicable assets. The Group assessed whether
any indicators of impairment were present at 31
December 2022 and concluded that an indicator
or indicators of impairment were present in
respect of the Mako Gold Mine and the Syama
Gold Mine cash generating units (CGUs). It was
determined that the recoverable amount of the
CGUs were greater than the carrying value and
therefore no impairment loss was recognised for
the year ended 31 December 2022 (refer to
Note B.3 to the financial report).
We considered this to be a key audit matter
because of the:
► Significant judgment involved in
determining whether there are indicators of
impairment.
► Significant judgment and estimates involved
in the determination of the recoverable
amount of the Mako gold mine CGU and
Syama gold mine CGU including
assumptions relating to future gold prices,
operating and capital costs, the discount
rate used to reflect the risks associated with
the forecast cash flows having regard to the
current status of the CGUs and the resource
valuation multiples used to value the
resources not included in the life of mine
plans.
We evaluated the Group’s assessment as to whether any
indicators of impairment existed. Our audit procedures
included the following:
► Read operational reports, board reports, minutes and
market announcements.
► Assessed changes to reserves and resources and other
macro-economic factors including the gold price and
discount rates.
► Evaluated the impact of changes in tax regimes and its
impact on recoverable amount.
► Compared the Group’s market capitalisation relative to
its net assets.
Our audit procedures related to the impairment assessment
made by the Group following the identification of impairment
indicators included the following:
► Assessed the Group's impairment methodology was in
accordance with the relevant requirements of
Australian Accounting Standards.
► Evaluated the assumptions and methodologies used by
the Group, in particular, those relating to forecast cash
flows including inputs used to formulate them and the
resource valuation multiples used. This included
assessing, with involvement from our valuation
specialists, where appropriate, the gold prices with
reference to market prices (where available), market
research, market practice, market indices, broker
consensus, historical performance, accuracy of
historical forecasting, discount rates and resource
valuation multiples.
► Tested the mathematical accuracy of the Group's
discounted cash flow impairment models and agreed
relevant data, including assumptions on timing and
future capital and operating expenditure, to the Group's
feasibility analysis of the CGUs and the latest Board
approved life of mine plan (as appropriate).
► Assessed the work of the Group's internal and external
experts with respect to the capital and operating
assumptions used in the cash flow forecasts. We also
considered the competence, qualifications and
objectivity of the experts and assessed whether key
capital and operating expenditure assumptions were
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Financial ReportRESOLUTE MINING LIMITED 2022 ANNUAL REPORT
4
Why significant
How our audit addressed the key audit matter
consistent with information in Board reports and
releases to the market.
► Assessed the work of the Group's experts with respect
to the reserve and resource assumptions used in the
cash flow forecasts. This included understanding the
estimation process. We also examined the competence,
qualifications and objectivity of the Group's experts,
and assessed whether key economic assumptions were
consistent with those used elsewhere in the financial
report.
► Assessed the impact of a range of sensitivities to the
economic assumptions underpinning the Group's
impairment assessment.
► Evaluated the adequacy of the Group's disclosures in
the Notes to the financial report.
3. Rehabilitation and restoration provisions
Why significant
How our audit addressed the key audit matter
The Group incurs obligations to rehabilitate and
restore its mine sites due to its operations.
Rehabilitation activities are governed by local
legislative requirements. At 31 December 2022
the Group includes provisions of $72,094,000
in respect of these obligations (refer to Note
D.5 to the financial report).
We considered this to be a key audit matter
because estimating the rehabilitation and
restoration provision requires judgement in
relation to when the activities will take place,
the time required for rehabilitation to be
effective, the costs associated with the
activities and economic assumptions such as
discount rates and inflation rates. Given the
significant judgements and assumptions
involved, the Group is required to continually
reassess and confirm that the assumptions used
are appropriate.
We evaluated the assumptions and methodologies used by the
Group in determining their rehabilitation obligations. Our
audit procedures included the following:
► Assessed the qualifications, competence and objectivity
of the Group’s external and internal experts, the work of
whom, formed the basis of the Group’s rehabilitation
cost estimates.
► With the involvement of our specialists we assessed the
appropriateness of the rehabilitation cost estimates.
► Assessed the estimated timing of when the rehabilitation
cash flows will be incurred based on the life of mine and
the resultant inflation and discount rate assumptions
used in the Groups cost estimates, having regard to
available economic data relating to future inflation and
discount rates.
►
Evaluated the adequacy of the Group’s disclosures in the
Notes to the financial report and considered the
appropriateness of the accounting for the changes in the
rehabilitation and restoration provision.
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Financial Report RESOLUTE MINING LIMITED 2022 ANNUAL REPORT
5
4.
Taxation
Why significant
How our audit addressed the key audit matter
Our audit procedures in relation to indirect tax, current and
deferred tax included the following:
►
Involved our tax specialists in the interpretation of
enacted tax laws in these multiple jurisdictions, where
necessary, including assessing the reasonableness of the
related judgments and interpretations made by the
Group.
► Considered the appropriateness of the Group’s
assumptions and estimates in relation to tax positions,
assessed those assumptions and evaluated the advice
the Group received from external experts to support the
accounting for the tax positions in accordance with
enacted laws.
► Assessed the appropriateness of the tax assets and
liabilities recognised by the Group at 31 December 2022
having regard to the requirements of the applicable
accounting standards.
► Where external experts were engaged by the Group, we
assessed their qualifications, competence and
objectivity.
► Assessed the adequacy of the Group’s disclosures in the
Notes to the financial report.
The Group has operations in multiple countries,
each with its own taxation legislation. The
nature of the Group’s activities give rise to
various taxation obligations including corporate
income tax, VAT, royalties, employment related
taxes, and other indirect taxes.
The Group has a current tax payable of
$19,107,000 and non-current tax receivable of
$10,545,000 recognised at 31 December
2022. The Group has recognised a tax expense
of $20,560,000 for the year ended 31
December 2022. In addition, as disclosed in
Notes D.1 and D.5 to the financial report, the
Group has indirect tax receivables from the Mali
and Senegal Tax Offices of $48,756,000 and a
provision for indirect tax payable to the Mali and
Senegal Tax Offices of $92,936,000 as at 31
December 2022.
Further, as disclosed in Notes A.4 the Group has
significant unrecognised tax assets as at 31
December 2022.
We considered this to be a key audit matter
because the Group is required to exercise
significant judgment with regards to
interpretation of enacted tax laws in these
multiple countries which in turn requires
significant judgment in estimating the Group’s
taxation assets and liabilities at 31 December
2022. The Group engages external independent
tax advisors to assist with the interpretation of
tax laws and the estimation of its tax assets and
liabilities.
Information other than the financial report and auditor’s report thereon
The directors are responsible for the other information. The other information comprises the
information included in the Company’s 2022 annual report, but does not include the financial report
and our auditor’s report thereon.
Our opinion on the financial report does not cover the other information and accordingly we do not
express any form of assurance conclusion thereon, with the exception of the Remuneration Report
and our related assurance opinion.
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In connection with our audit of the financial report, our responsibility is to read the other information
and, in doing so, consider whether the other information is materially inconsistent with the financial
report or our knowledge obtained in the audit or otherwise appears to be materially misstated.
If, based on the work we have performed, we conclude that there is a material misstatement of this
other information, we are required to report that fact. We have nothing to report in this regard.
Responsibilities of the directors for the financial report
The directors of the Company are responsible for the preparation of the financial report that gives a
true and fair view in accordance with Australian Accounting Standards and the Corporations Act 2001
and for such internal control as the directors determine is necessary to enable the preparation of the
financial report that gives a true and fair view and is free from material misstatement, whether due to
fraud or error.
In preparing the financial report, the directors are responsible for assessing the Group’s ability to
continue as a going concern, disclosing, as applicable, matters relating to going concern and using the
going concern basis of accounting unless the directors either intend to liquidate the Group or to cease
operations, or have no realistic alternative but to do so.
Auditor’s responsibilities for the audit of the financial report
Our objectives are to obtain reasonable assurance about whether the financial report as a whole is
free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that
includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an
audit conducted in accordance with the Australian Auditing Standards will always detect a material
misstatement when it exists. Misstatements can arise from fraud or error and are considered material
if, individually or in the aggregate, they could reasonably be expected to influence the economic
decisions of users taken on the basis of this financial report.
As part of an audit in accordance with the Australian Auditing Standards, we exercise professional
judgment and maintain professional scepticism throughout the audit. We also:
►
Identify and assess the risks of material misstatement of the financial report, whether due to
fraud or error, design and perform audit procedures responsive to those risks, and obtain audit
evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not
detecting a material misstatement resulting from fraud is higher than for one resulting from
error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the
override of internal control.
► Obtain an understanding of internal control relevant to the audit in order to design audit
procedures that are appropriate in the circumstances, but not for the purpose of expressing an
opinion on the effectiveness of the Group’s internal control.
► Evaluate the appropriateness of accounting policies used and the reasonableness of accounting
estimates and related disclosures made by the directors.
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► Conclude on the appropriateness of the directors’ use of the going concern basis of accounting
and, based on the audit evidence obtained, whether a material uncertainty exists related to
events or conditions that may cast significant doubt on the Group’s ability to continue as a going
concern. If we conclude that a material uncertainty exists, we are required to draw attention in
our auditor’s report to the related disclosures in the financial report or, if such disclosures are
inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up
to the date of our auditor’s report. However, future events or conditions may cause the Group to
cease to continue as a going concern.
► Evaluate the overall presentation, structure and content of the financial report, including the
disclosures, and whether the financial report represents the underlying transactions and events
in a manner that achieves fair presentation.
► Obtain sufficient appropriate audit evidence regarding the financial information of the entities or
business activities within the Group to express an opinion on the financial report. We are
responsible for the direction, supervision and performance of the Group audit. We remain solely
responsible for our audit opinion.
We communicate with the directors regarding, among other matters, the planned scope and timing of
the audit and significant audit findings, including any significant deficiencies in internal control that we
identify during our audit.
We also provide the directors with a statement that we have complied with relevant ethical
requirements regarding independence, and to communicate with them all relationships and other
matters that may reasonably be thought to bear on our independence, and where applicable, actions
taken to eliminate threats or safeguards applied.
From the matters communicated to the directors, we determine those matters that were of most
significance in the audit of the financial report of the current year and are therefore the key audit
matters. We describe these matters in our auditor’s report unless law or regulation precludes public
disclosure about the matter or when, in extremely rare circumstances, we determine that a matter
should not be communicated in our report because the adverse consequences of doing so would
reasonably be expected to outweigh the public interest benefits of such communication.
Report on the audit of the Remuneration Report
Opinion on the Remuneration Report
We have audited the Remuneration Report included in the directors’ report for the year ended 31
December 2022.
In our opinion, the Remuneration Report of Resolute Mining Limited for the year ended 31 December
2022, complies with section 300A of the Corporations Act 2001.
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Responsibilities
The directors of the Company are responsible for the preparation and presentation of the
Remuneration Report in accordance with section 300A of the Corporations Act 2001. Our
responsibility is to express an opinion on the Remuneration Report, based on our audit conducted in
accordance with Australian Auditing Standards.
Ernst & Young
Philip Teale
Partner
Perth
29 March 2023
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Financial Report RESOLUTE MINING LIMITED 2022 ANNUAL REPORT
SHAREHOLDER INFORMATION
As at 28 February 2023
Substantial Shareholders
Ordinary Shares
Condire Management, LP
Baker Steel Capital Managers LLP
Van Eck Associates Corporation
Distribution Of Equity Securities
Size of Holding
1 - 1,000
1,001 - 5,000
5,001 - 10,000
10,001 - 100,000
100,001 - and over
Total equity security holders
Number of equity security holders with less than a marketable parcel
Voting Rights
a) Ordinary Shares
Number of Shares
% of Issued Capital
242,075,320
151,019,289
112,290,543
11.37
7.09
5.27
Number of Holders
% of Issued Capital
2,121
4,160
2,071
4,666
970
13,988
3,765
0.05
0.55
0.77
7.36
91.27
100.00
Under the Company’s Constitution, all ordinary shares issued by the Company carry one vote per share without restriction
Twenty Largest Shareholders
Name
Number of Shares
% of Issued Capital
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
Condire Management, LP
Baker Steel Capital Managers LLP
Van Eck Associates Corporation
ICM Limited
Regal Funds Management Pty. Ltd.
The Vanguard Group, Inc.
Konwave AG
Dimensional Fund Advisors, L.P.
DFA Australia Ltd.
Asf Yova Mining Holding Ltd
Franklin Advisers, Inc.
Acorn Capital Ltd.
Schroder Investment Management Ltd. (SIM)
First Sentier Investors Realindex Pty Ltd.
Stabilitas GmbH
Accident Compensation Corporation
Baader Bank AG
Extract Advisors LLC
BlackRock Investment Management (Australia) Ltd.
20
Computershare Clearing Pty Ltd
242,075,320
151,019,289
112,290,543
90,303,848
85,972,751
68,306,944
60,814,891
58,742,855
45,120,711
41,189,189
40,625,000
30,948,807
30,805,709
30,099,205
24,711,711
21,548,214
21,372,098
20,380,298
16,929,396
16,497,184
11.37
7.09
5.27
4.24
4.04
3.21
2.86
2.76
2.12
1.93
1.91
1.45
1.45
1.41
1.16
1.01
1.00
0.96
0.80
0.77
1,209,753,963
56.82
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INFORMATION
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Additional Information RESOLUTE MINING LIMITED 2022 ANNUAL REPORT Additional Information
CORPORATE DIRECTORY
STAY IN TOUCH
Website
Resolute maintains a website where all major
announcements to the ASX/LSE are available:
www.rml.com.au
www.linkedin.com/company/resolute-mining
Registered Office
Level 2, Australia Place
15-17 William Street
Perth, Western Australia 6000
PO Box 7232 Cloisters Square
Perth, Western Australia 6850
T + 61 8 9261 6100
F + 61 8 9322 7597
E contact@rml.com.au
www.rml.com.au
Australian Business Number
ABN 39 097 088 689
Share Registry
Computershare Investor Services Pty Limited
Level 11, 172 St Georges Terrace
Perth, Western Australia 6000
Home Exchange
Australian Securities Exchange
Level 40, Central Park
152-158 St Georges Terrace
Perth, Western Australia 6000
Quoted on the official lists of the Australian Securities Exchange
(ASX) and the London Stock Exchange (LSE) under the ticker “RSG”
Auditor
Ernst & Young
Ernst & Young Building
11 Mounts Bay Rd
Perth, Western Australia 6000
Shareholders wishing to receive copies of Resolute’s ASX
announcements by e-mail should register their interest by
contacting the Company at contact@rml.com.au
Securities on Issue
29 March 2023
Ordinary Shares
Performance Rights
2,129,006,569
10,916,506
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RESOLUTE MINING LIMITED 2022 ANNUAL REPORT
CREATING VALUE FOR
SHAREHOLDERS
AND COMMUNITIES
WHERE WE OPERATE.
rml.com.au
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Additional InformationRESOLUTE MINING LIMITED 2022 ANNUAL REPORT