2023
Annual 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
1
2
3
4
5
6
11
13
25
29
33
39
43
112
SCOPE OF THIS REPORT
Resolute Mining Limited’s 2023 Annual report presents the
Company’s operating and financial results for the period from
1 January 2023 to 31 December 2023.
It has been prepared for stakeholders in line with statutory and
regulatory reporting obligations.
Resolute is a successful gold focused mining company. This
report outlines Resolute’s operational and financial performance
and details the Company’s efforts in 2023 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 39 097 088 689) and its
subsidiaries.
All dollar figures are in US dollars currency, unless
otherwise stated.
All references to 2023 are for the 12-month period from 1 January
2023 to 31 December 2023, unless otherwise stated.
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
between 140,000-150,000 ounces of gold in 2024.
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
between 205,000-215,000 ounces of gold in 2024 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.
2023 AT A GLANCE
Revenue
$631million
Operating Cash Flow
107million
Cash and Bullion(*)
$85million
(*) These balances are non-IFRS information and have not been audited.
EBITDA(*)
$161million
Net Profit After Tax
$92million
Net Cash(*)
$14million
RESOLUTE MINING LIMITED 2023 ANNUAL REPORT
1
From the Chairman
GROWING UNDERLYING
PROFITABILITY
“Resolute continued to move forward in 2023
demonstrating a growing underlying profitability
through its improved operational platform. This
combined with a strengthened balance sheet has
enabled the Company to lift its head as we move into
2024. We are excited by the potential at Syama, starting
with the near-term Phase 1 Sulphide Conversion
Project, as well as our initial exploration success at
Tomboronkoto in Senegal, and believe these can deliver
considerable value for our shareholders.”
The fundamental focus for management
over the twelve months remained on
improving our operational base and
setting the path to lower all-in sustaining
costs, while at the same time delineating
our sulphide resource at Syama North,
continuing expansion at Syama, and
further exploration in Senegal and Guinea.
It feels that in 2023 we have turned the
corner in both an operational and
financial sense. The results of the
relentless focus on our operational
capabilities over the past three years
now allows us to move forward to
address organic expansion opportunities,
and the space to consider the wider
strategic landscape.
This progress has been made
notwithstanding a macro and
socioeconomic environment in that part
of West Africa in which we operate that
remains difficult and continues to
negatively impact the investment climate
and market value of the Company.
Despite the issues, our operations have
worked through any difficulties and no
production has been lost. Furthermore,
relationships with national governments
have remained constructive with a
willingness to co-operate in the best
interest of all stakeholders.
We are pleased with what has been
achieved at Syama, particularly given the
challenge it had proved for previous
owners. While there is much work still to
be done, a path to a significantly larger
long-term gold mine, with concomitant
operational efficiencies, is becoming more
visible now. The Syama North resource
provides optionality and scale, this before
one considers further the Nafolo and
Tabakoroni underground options.
At Mako there was another year of
delivering to plan operationally while also
focused on extending the mine life. It is
pleasing to note that changes to in-
country management have resulted in our
gaining access to drill prospective areas
near our plant, including Tomboronkoto
where we have announced a maiden
Mineral Resource Estimate in January
2024. With access now to other
prospective licenses potentially within
trucking distance of the plant, we are
hopeful the next 12 months will provide
visibility to the potential of extended
operations at Mako.
We have continued to move the
geographic balance of our teams towards
our operations. A conscious push to place
local or other African country nationals
into senior positions in our operations,
providing ‘on the ground’ local leadership,
together with centralised support being
moved into the same time zone, is
providing visible benefits.
The renewal of our C-suite management
was completed this year with the
appointment of Chris Eger who joined
as CFO. In addition to his financial and
accounting experience Chris brings
a business development mindset to
Terry’s team.
At the board level a refresh process was
initiated after formal review, with Keith
Marshall joining as non-executive director
earlier in 2023 to bring relevant mining
skills. The recent appointment of Adrienne
Parker adds key legal and additional risk
management experience to the board. At
the same time, I would like to recognise
the contribution of Mark Potts, who has
resigned from the board. Mark’s attention
to detail as Chair of the Remuneration
Committee and the value he has
contributed with his diverse experience
from the tech industry is well recognised
by board colleagues – we wish him the
best as he concentrates on his growing
tech portfolio.
In 2023 we maintained a strong operational
ESG performance, distributing over
$575 million of economic value in Senegal
and Mali through our operations. We
continued to record zero significant
environmental or community incidents, and
our TRIFR of 1.71 per million hours worked
remains below industry average. Elsewhere
on ESG matters we were assured as
conformant with the World Gold Council’s
Responsible Gold Mining Principles and
Conflict Free Gold Standard, whilst also
2
RESOLUTE MINING LIMITED 2023 ANNUAL REPORT
Martin Botha, Chairman
achieving group level ISO 14001 and ISO
45001 certification.
Regarding inorganic growth we are
cognisant of only pursuing opportunities
that deliver accretive value for Resolute
shareholders. While several opportunities
were assessed over the year none were
deemed sufficiently attractive to advance.
We believe our share price does not
reflect the underlying value in Resolute
and our intention is to continue to focus
on delivering improved profitability and
cashflow – building on what was
achieved in 2023 – to unlock this value
for our shareholders.
Lastly, I must thank and congratulate
Terry Holohan on another successful year
as CEO. Terry’s appointment initiated the
turnaround period when he joined as
COO in 2021, and he has been able to
progress his vision further now as CEO.
His operational experience is exactly what
the company required, and he has created
a team of high-quality individuals who can
continue to deliver the improved
operational and financial outcomes the
company is focused on achieving.
Finally, on behalf of the Board, I would like
to thank you, our shareholders, for your
trust and support during 2023.
Martin Botha
Chairman
Resolute’s Purpose and Values
RESOLUTE MINING LIMITED 2023 ANNUAL REPORT
3
From the CEO
CONTINUED OPERATIONAL
IMPROVEMENT
“2023 was a year of continued operational improvement
for Resolute, cementing the turnaround of our
operations and further enhancing the Group’s financial
position. As we predicted we returned to underlying
profitability reaching a net cash position by year end.
2024 will be another key year for the Company with
the construction of the oxide plant conversion project
at Syama.”
It is a pleasure to report on the
tremendous progress Resolute made
throughout 2023. Significant work has
gone into turning the company around
both financially as well as improving
operational efficiencies. Over the year, we
have managed to transition from a net
debt1 position of $31.6 million in December
2022 to a net cash1 position of $14.0
million at the end of 2023, which is hugely
significant and importantly, positions the
company for growth going forward.
The Syama Gold Mine in Mali presented
several technical challenges over the last
five years with its transition from a surface
oxide and sulphide mine to a
predominantly underground sulphide mine.
The operational equipment in both the
mines and the plants have been
progressively upgraded over the past two
and a half years and are now consistently
achieving higher than nameplate
capacities due to improvements in both
throughput and utilisation. With the last
two years of profitability from sulphide
operations at mill feed grades and
throughputs of over 2.6 g/t Au and
2.3 Mtpa respectively, the focus now turns
to converting the oxide plant to be able to
also treat these higher margin sulphides.
This Phase 1 improvement project is known
as the Syama Sulphide Conversion Project
(“SSCP”). The project is being funded out
of Free Cash Flow1 (“FCF”), commenced in
2023 and by mid-2025 will increase the
sulphide processing capacity to 4.0 Mtpa
allowing the recently discovered high-
grade (3.0 g/t Au) Syama North sulphide
reserve to be exploited via open pit mining
in preference to lower margin oxides. The
overall objective is to increase the
production profile of Syama from
approximately 210 to over 250 koz per
annum and reduce the cost profile by up
to $200/oz by a combination of further
ongoing improvements to efficiencies as
well as this increase in production units.
Whilst this will see a significant increase in
production in the short to medium-term,
we are also focusing on the longer-term
Phase 2 Expansion, with progressive
engineering studies to unfold over the next
two years, to unlock the true potential of
this large, >10 Moz Au, mineralisation to
endeavour to systematically create a Tier 1
mine over the next five years from the
various large sulphide deposits already
identified along the 85 km of strike.
Turning to Mako in Senegal, the past year
has seen consistently strong results and
cash flows. We have completed the final
strip on the open pit and opened up two
years of production of over 2 g/t material.
Importantly, we are also very pleased with
the progress being made to extend the life
of the Mako operation as the exploration
teams mobilised their drill rigs onto three
satellite licenses close to the existing mine
and along the same Greenstone Belt.
Resolute announced the maiden Mineral
Resource Estimate (“MRE”) at the
Tomboronkoto Prospect on 24 January
2024 of 10.7Mt grading 1.2 g/t Au for
403 koz at a cut-off of 0.5 g/t (in-line with
the current cut-off grade used to define
Mako’s Mineral Resources).
With the confidence steadily growing in
our operations there has been scope to
increase Greenfields and Brownfields
exploration activities. Drilling at the
Syama North Project in Mali continued
throughout Q4 in 2023 to extend and
upgrade the open pit potential of this
large Mineral Resource. In September
2023 Resolute released an updated MRE
for Syama North with Measured and
Indicated Resources increasing to
2.72 Moz grading 3.0g/t. The majority of
this MRE is located within 200m of
surface highlighting the open pit potential
of the deposit. Along with the successful
Mali and Senegal exploration activity over
the last two years, we are very excited by
our five exploration licenses in Guinea on
the prospective Siguiri Basin. Preliminary
results from both geophysics and RC
drilling are expected in due course.
Financially, 2023 was a strong year for
Resolute with Group Revenue of
$631.1 million, and an 8% increase from
2022 in earnings before interest, tax,
depreciation and amortisation (EBITDA1)
to $161.2 million. The Company reported
a net profit after tax of $91.5 million.
1. This is a non-GAAP measure with no standard meaning under IFRS
4
RESOLUTE MINING LIMITED 2023 ANNUAL REPORT
Terry Holohan, CEO
have paved the way for a sustainable
reduction in costs which has been a key
focus over the last year. The result of
tighter control over the costs of our
operations is starting to reflect well. We
have seen huge improvements over 2023
and we are expecting to reduce the cost
per ounce further in the coming year
where we have guided our AISC1 at
$1,300-1,400/oz for the group compared
to our $1,470/oz achieved in 2023, despite
the global headwinds we all face.
We continue to receive support and
maintain excellent relations with the
governments and communities in Mali,
Senegal and Guinea. We endeavour to
uphold our exemplary safe working
conditions with the Group operating
2.3 years LTI-Free (840 days) at Mako
and Syama operating 4.9 years LTI-Free
(1,787 days) at the end of 2023 – statistics
we are all very proud of. In August 2023
we were audited as conformant against
the World Gold Council’s ‘Responsible
Gold Mining Principles’ after a three-year
improvement journey. We also
successfully passed our group-wide ISO
14001 & 45001 certifications surveillance
audits and completed climate change and
human rights risks assessments. The
climate change risk review highlighted a
series of action plans that are now being
formulated to engineer our mines over the
next twenty four months to be more
robust to off-set the expected higher
ambient temperatures and frequency of
major rainfall events going forward.
I would like to thank our employees for
their various initiatives and tireless efforts
during another momentous year for the
Company, and also extend my thanks to
all our shareholders and stakeholders for
your ongoing support.
Resolute’s organic growth and
improvement in operational efficiencies
Terry Holohan
Managing Director and CEO
2023
HIGHLIGHTS
For the year ending 31 December 2023
GOLD PRODUCTION
330,992oz
ALL-IN SUSTAINING COST
$1,469/oz
TOTAL GOLD SOLD
329,061oz
AVERAGE PRICE ACHIEVED
$1,920/oz
RESOLUTE MINING LIMITED 2023 ANNUAL REPORT
5
Board of Directors and Leadership Team
THE BOARD
Terry Holohan
BSc CEng MIMMM
Managing Director and Chief
Executive Officer
Martin Botha
BSc Eng
Non-Executive Chairman
Mark Potts
BSc (Hons), GAICD
Non-Executive Director
(Until 20 March 2024)
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
Keith Marshall
BSc Eng
Non-Executive Director
Adrienne Parker
LLB (Hons)
Non-Executive Director
(Appointed 20 March 2024)
LEADERSHIP TEAM
Geoff Montgomery
BSc Chem Eng (Hons)
MIMM
Chief Operating Officer
Chris Eger
MBA (Exec)
Chief Financial Officer
Bruce Mowat
BSc (Geology)
Executive General Manager -
Exploration
6
RESOLUTE MINING LIMITED 2023 ANNUAL REPORT
Board of Directors and Leadership Team
Other current directorships/
appointments
▪ Non-Executive Director of Linear
Clinical Research Limited
(appointed 2019)
▪ Non-Executive Director of Land
Services WA (appointed 2019)
Sabina Shugg
BSc (Mining Engineering), MBA,
GAICD, MAusIMM
Non-Executive Director
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.
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 recently completed a four year
term 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. Concurrently she served
a three year term as Chair of Goldfields
Esperance Development Commission.
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 and a
Member of the Australasian Institute of
Mining and Metallurgy (AusIMM).
THE BOARD
Terry Holohan
BSc CEng MIMMM
Managing Director and Chief Executive
Officer
Mr Terry Holohan was appointed as
Managing Director and CEO 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 with 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
Martin Botha
BSc Eng
Non-Executive Chairman
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.
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)
Mark Potts
BSc (Hons), GAICD
Non-Executive Director
(Until 20 March 2024)
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 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
RESOLUTE MINING LIMITED 2023 ANNUAL REPORT
7
Adrienne Parker
LLB (Hons)
Non-Executive Director
(Appointed 20 March 2024)
Ms Parker is a lawyer with over 25 years’
experience in the resources, energy, and
infrastructure sectors, with an additional
emphasis on major projects as well as
running complex disputes. Adrienne was
most recently Partner and Head of the
Perth office at global law firm Pinsent
Masons, where she advised in connection
with the procurement and delivery of
infrastructure in the mining, oil and gas
and renewables sectors, including rail,
roads, ports and airports.
Her experience in the resources and
energy sector includes major projects in
Australia, Papua New Guinea and Africa.
This has included advice on risk
assessment and management,
procurement models and strategy, the
preparation and negotiation of mining
services and supply agreements, as well
as EPC and EPCM contracts. Ms Parker
has also acted in large-scale disputes in
many jurisdictions.
With a law degree from the University of
Western Australia, Adrienne currently
serves on the Boards of Liontown
Resources Limited, where she Chairs the
Sustainability and Risk Committee, and
Fleetwood Limited, where she Chairs the
Nominations and Diversity Committee.
Board of Directors and Leadership Team
THE BOARD
Sabina Shugg continued
Current listed directorships
▪ Non-Executive Director of Tietto
Minerals Ltd (appointed
September 2023)
Other current directorships/
appointments
▪ Director of WIMWA Events Pty Ltd
(appointed 2007)
Adrian Reynolds
MSc, GradDipMinEng
Non-Executive Director
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 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
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)
▪ Non-Executive Chairman of Leeuwin
Metals Limited (appointed March 2023)
Other current directorships/
appointments
▪ None
Keith Marshall
BSc Eng
Non-Executive Director
Mr Keith Marshall was appointed to the
Board as a Non-Executive Director in June
2023. Mr Marshall is a member of the
Audit and Risk Committee and
Remuneration Committee.
Skills, experience and expertise
Mr Marshall is a mining engineer with a
wealth of technical and managerial
expertise gained over 40 years in the
sector, with the last fifteen years spent in
senior mine leadership roles. His
experience in underground mining and
caving is particularly relevant.
Mr Marshall’s last two operational roles
were both with Rio Tinto, with whom he
has worked for 22 years, as Managing
Director of the Phalabora Mining
Company in South Africa and as
President of the Oyu Tolgoi Project in
Mongolia.
Mr Marshall holds a mining engineering
degree from the Royal School of Mines at
Imperial College London.
Current listed directorships
▪ Non-Executive Director of Shanta Gold
Ltd (appointed 2017)
Other current directorships/
appointments
▪ None
8
RESOLUTE MINING LIMITED 2023 ANNUAL REPORT
Board of Directors and Leadership Team
RESOLUTE MINING LIMITED 2023 ANNUAL REPORT
9
Board of Directors and Leadership Team
LEADERSHIP TEAM
Geoff Montgomery
BSc Chem Eng (Hons) MIMM
Chief Operating 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.
Chris Eger
MBA (Exec)
Chief Financial Officer
Mr Chris Eger was appointed as Chief
Financial Officer in February 2023, bringing
with him over 25 years of experience
leading the financial, strategic and
commercial functions of businesses in the
natural resources and financial sectors.
Chris has held a number of senior
financial, commercial and leadership roles
in the resources and investment banking
sectors. Most recently he was the CFO of
Chaarat Gold Plc and was previously CFO
of Nyrstar NV and the M&A Director at
Trafigura AG. He commenced his career
in private equity and investment banking
with BP Capital Management, BMO
Capital Markets and Bank of America
Merrill Lynch. Chris has extensive
experience in North America, Africa,
Europe and the UK.
Richard Steenhof
LLB (Dist.)
General Counsel and Company Secretary
(Until 19 January 2024)
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.
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 2023 ANNUAL REPORT
SUSTAINABILITY
AT RESOLUTE
RESOLUTE MINING LIMITED 2023 ANNUAL REPORT
11
Sustainability 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 2023, Resolute was externally assured as conformant with the
RGMPs, in line with the WGC 3-year timeline. This assurance
process certifies that we are addressing the key environmental,
social and governance issues material for the gold mining sector
and that our gold is produced responsibly.
Additionally, we received external assurance against the Conflict
Free Gold Standard, ensuring that our gold production does not
cause, support, or benefit unlawful armed conflict or contribute
to serious human rights abuses or breaches of international
humanitarian law.
Resolute continued to refine its sustainability frameworks,
systems, protocols, and management standards in line leading
practice. In 2023, we maintained our group ISO 14001 and 45001
certifications and are actively working toward compliance with
the Global Industry Standard on Tailings Management (GISTM)
by August 2025.
Resolute’s Sustainability Strategy continues to evolve as the
Company’s understanding of ESG risk and opportunity at our
assets matures. In 2023, we commissioned our first group
Human Rights Risk Assessment, and will address identified areas
of improvements during 2024.
We welcome the recommendations of the Task Force on
Climate-related Financial Disclosures (TCFD). In 2023, we
underwent a group climate change physical and transitional risk
assessment under the following low (SSP1-2.6), medium
(SSP3-7.0) and high (SSP5-8.5) emissions scenarios, and the
2030-2050 time horizons. The results of this assessment are
disclosed in our 2023 Sustainability Report.
In 2023 we maintained a strong operational ESG performance,
distributing over $575 million of economic value in Senegal and
Mali through our operations. We recorded zero significant
environmental incidents or non-compliances, zero community
grievances and zero industrial disputes. Our TRIFR of 1.71 per
million hours worked is below industry average, and we have
recorded zero LTIs since 2021.
We recognise the importance of disclosing our ESG metrics to
the investment community to allow the benchmarking of
sustainability performance across the mining sector. We are
committed to increasing our disclosure of material ESG
information and we are actively working to improve our ESG
ratings across providers. We are pleased that our performance
continues to rate highly amongst our peers, and continues to
rate highly in transparency and disclosure. Of note, we are rated
in the 81st percentile by the S&P Jones CSA, in the 92nd
percentile by Moody’s, and in the 76th percentile by MSCI.
Additional information on Resolute’s ESG performance can be
found in our 2023 Sustainability Report which will be available to
download on the Company’s website at rml.com.au in April 2024.
12
RESOLUTE MINING LIMITED 2023 ANNUAL REPORT
Percentile ranking based on:
S&P CSA – Score 45, 81st percentile, out of 243 companies in the metals
mining sector.
Moody – 92nd percentile, rank 5 of 66 in the metals in mining & metals
Asia pacific sector.
MSCI – 76th percentile, ranked 63rd out of 83 in the precious metals universe
assuming Resolute are at the midpoint of the AA percentile group.
Sustainalytics – 65th percentile in the gold sub-industry; Ranked 31st out of 89 with
1 being the top score.
ISS – 49th percentile, ranked 91st out of 186 in the mining and integrated production
industry group assuming RML are at the midpoint of the C- percentile group.
OPERATIONS
REVIEW
RESOLUTE MINING LIMITED 2023 ANNUAL REPORT
13
Operations Review
OVERVIEW
With more than 30 years' experience, Resolute
has the expertise to continue optimising the
performance of its two producing gold mines in
Africa: the Syama Mine in Mali (Syama) and the
Mako Mine in Senegal (Mako).
During 2023, Resolute continued to focus on productivity
improvements and cost efficiencies at its gold mines,
implementing a range of cost cutting initiatives as well as
progressing organic growth projects such as the Phase I
Expansion at Syama.
In 2023, Resolute poured 330,992oz of gold at an AISC of
$1,469/oz, compared to 353,069oz at an AISC of $1,498/oz in the
prior year which included an extra contribution of residual gold
processed from legacy ponds.
Syama and Mako mined a near-record 6.6 million tonnes (Mt)
of ore with the processing plants milling 6.0Mt of ore at a grade
of 2.06 grams per tonne of gold (g/t).
The 2023 result was impacted by production challenges
including mining accessibility during the rainy season at both
sites and a high-carbon pocket in the Tabakoroni pit at Syama.
These were remedied and both sites returned to design levels
in the December quarter.
Resolute had stable performance across both mines successfully
implementing a number of initiatives to improve operational
performance and reduce costs. At Syama this involved stricter
inventory management and capital reviews. At Mako an oxygen
plant was commissioned improving recoveries and the power
plant purchased reducing reliance on contractors.
The Company’s mine in Mali provides a strong platform for
organic growth. This is being realised with the Phase I Expansion
Project which is underpinned by the Syama North Resource that
increased to over three and a half million ounces of gold.
Construction of Phase I is expected to commence in the first
quarter of 2024 providing a strong growth opportunity for
the Company.
14
RESOLUTE MINING LIMITED 2023 ANNUAL REPORT
Operations Review
Mine Operations Review
for the year ended 31 December 2023
Total Ore Mined
Total Ore Processed
Grade Processed
Recovery
Gold Recovered
Gold in Circuit Additions/(Drawdown)
Gold Poured
AISC
Measure/
Units
Syama
Sulphide
Syama Oxide Syama Total
Mako
Group Total
Tonnes
Tonnes
g/t
%
oz
oz
oz
2,396,913
1,843,780
4,240,693
2,367,808
6,608,501
2,264,443
1,579,581
3,844,024
2,118,221
5,962,245
2.65
78.2
151,358
102
151,256
1.42
84.5
60,773
883
59,890
2.15
80.8
1.91
92.0
2.06
84.8
212,131
119,820
331,951
985
(26)
959
211,146
119,846
330,992
$/oz
1,390
1,631
1,458
1,373
1,469
In Mali, the Syama sulphide circuit delivered gold production of 151.4koz at an AISC of $1,390/oz. This was 6% lower than in 2022
despite the similar mining and milling metrics as in 2022 gold production was positively impacted by over 21koz of residual gold
processed from legacy ponds containing high-grade sulphide concentrate material which had been largely exhausted by Q2 2023.
The AISC decreased by 1.5% to $1,390/oz despite 10koz fewer ounces being produced. This reduction has been attributed to the
ongoing cost efficiencies being realised at the mine.
The sub-level cave underground operation achieved 4% higher production with ore mined increasing to 2.4Mt and at a higher grade.
This was due to the productivity improvements around the truck fill and loader operations and the addition of two new trucks in the
second half of 2023. The roaster throughput was 169.5kt, down slightly from 2022 (175.2kt), and continued to perform well after the
successful 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 gold production for the year decreased 4% due to recoveries being impacted due to pockets of ‘transitional’ ores being
processed in Q2 2023 from the final cuts in the Tabakoroni pits containing marginally higher levels of organic carbon.
In Senegal, the Mako mine delivered a stable year of production that was expected to be lower given the stripping required and
consequent reduction in grades. Gold production for the year of 119.9koz at $1,373/oz AISC beat guidance (117koz at $1,470/oz). At
Mako, in 2023, Resolute successfully completed a pit cut back, exposing high grade areas that will be mined over the next two years.
Group AISC at $1,469/oz, was 2% lower than the prior year, due to improved operational efficiency from decreased operating and
capital costs that were partially offset by the volume effect of lower gold production. These cost saving initiatives will continue and
should lead to further cost reductions across both operations.
2024 Outlook
Resolute forecasts gold production for 2024 to be between 345,000-365,000 ounces at an AISC between $1,300-1,400/oz from the
Syama and Mako operations.
Total sustaining capital included in AISC is forecast to be between $15-25 million primarily consisting of sustaining capital projects
and stripping across both sites.
Total non-sustaining capital expenditure is forecast to be between $90-105 million. This includes $55 million for the Phase I expansion
project at Syama with the remaining capital expenditure relating to fleet replacement, TSF lifts and waste stripping. Non-sustaining
capital expenditure at Mako primarily consists of the final waste stripping in the pit.
The Group exploration budget for 2024 is $15-18 million of which $10-15 million is capital expenditure and the remainder being
operating expenditures.
In Mali, approximately $7 million is allocated for continued exploration of oxides and sulphides at Syama North (on the Syama Permit)
and exploration on the Finkolo Permit to the south.
In Senegal, $6 million of exploration has been budgeted in 2024 with a focus on Tomboronkoto where a maiden mineral resource
estimate has been produced and at the Bantaco JV. The $4 million budget for Tomboronkoto is to both infill drill to convert Inferred
resources to the Indicated category and further drilling to expand the resource. At Bantaco the 2024 budget of $1.5 million will include
a 10,000m RC drilling program, over areas of known outcropping mineralisation. The remaining budget will be used across other
projects in Senegal including at Laminia.
In Guinea, approximately $2.5 million is budgeted for 2024. The primary aim for 2024 is to outline an Inferred resource at the Mansala
Prospect (Niagassolo Permit).
2024 Guidance
Syama
Mako
Total
Production (oz)
AISC ($/oz)
205,000-215,000
140,000-150,000
1400-1,500
1,100-1,200
345,000-365,000
1,300-1,400
RESOLUTE MINING LIMITED 2023 ANNUAL REPORT
15
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.
Syama Gold Mine is a large-scale operation, comprising the established Syama Underground Mine, the Tabakoroni Complex and
the 3.5Moz Syama North 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%.
2023 AT A GLANCE
MINING
4.2Mt of ore
SALES
209,111oz
PRODUCTION
211,146oz
AISC
1,458/oz
GROWTH POTENTIAL
▪ Implement Phase I Expansion
to increase sulphide
processing capacity to 4 Mtpa
▪ Progress engineering studies
for a larger Phase 2
Expansion
▪ Progress work on the
extension of mining projects
at Tabakoroni
PROCESSING
3.8Mt at 2.15g/t and
80.8% recovery
RESOURCES
10.3Moz at 2.5g/t
RESERVES
4.0Moz at 2.6g/t
16
RESOLUTE MINING LIMITED 2023 ANNUAL REPORT
Operations Review
Syama Sulphide Operations
Gold production from the Syama sulphide operations for 2023
was down 6% to 151.4koz at a steady AISC of $1,390/oz,
compared to $1,410/oz in 2022. The decrease in AISC in 2023
is attributed to the ongoing cost saving initiatives and was
achieved despite 10koz fewer ounces being produced and
21 koz being released from GIC in 2022.
The sub-level cave underground operation in 2023 achieved
4% higher production and at a higher grade than the prior year
with mined tonnage of approximately 2.4Mt. This was due to
the productivity improvements around the truck fill and loader
operations and the addition of two new trucks in H2. Despite
similar mining and milling metrics gold production was higher
in 2022 because of the positive impact of over 21koz of residual
gold (GIC) processed from legacy ponds containing high-grade
sulphide concentrate material which had been largely
exhausted by Q2 2023.
Resolute made key improvements to the sulphide processing
circuit, with overall eleven days of roaster shutdown during the
year to complete maintenance work. In addition, more reliable
crushers were installed in the third quarter.
Syama Oxide Operations
Gold production from the Syama oxide operations for 2023
of 59.9 koz was similar to 2022 (62.2koz), however AISC
costs were 10% lower than the prior year at $1,631/oz (2022:
$1,801/oz) due to a reduction in operating costs and sustaining
capital expenditures.
Nonetheless 2023 was still a challenging year for oxide
operations as the quality and quantity of the oxide Ore
Reserves, as expected, have been diminishing. The reduction
in oxide ore is the rationale for the Phase 1 expansion to
replace these oxide ounces with higher margin sulphides from
the recently discovered high grade (2.9 g/t) Syama North pit
from 2025.
During 2023 there was an increase in tonnes processed due to
improvements in the crushing and milling circuits and the
softer nature of the material processed. The decreased oxide
recovery from 2022 was due to pockets of ‘transitional’ ores
being processed in Q2 2023 from the final cuts in the
Tabakoroni pits containing marginally higher levels of
organic carbon.
2023
2023
Syama Sulphide Production and Cost Summary
Ore Mined
(t)
Ore Milled
(t)
Head Grade
(g/t)
Syama Oxide Production and Cost Summary
Ore Mined
(t)
Ore Milled
(t)
Head Grade
(g/t)
2,396,913
2,264,443
2.65
1,843,780
1,579,581
1.42
Recovery
(%)
Production
(oz)
78.2
151,256
AISC
($/oz)
1,390
Recovery
(%)
Production
(oz)
85.4
59,890
AISC
($/oz)
1,631
Phase I Expansion Project
The Company is progressing on its Phase I Expansion Project,
also known as the Syama Sulphide Conversion Project (SSCP),
that will increase overall sulphide ore processing capacity by
60% from 2.4Mtpa to 4.0Mtpa by modifying the oxide
comminution circuit and upgrading the roaster.
This Project is being underpinned by the Syama North Mineral
Resource which now totals 38 million tonnes at 2.9g/t for
3.5Moz of gold. This high-grade mineralisation will be exploited
by open pit with the majority of the resource within 200m of
the surface.
The Project is targeting sustainable production levels in excess
of 250koz per annum as well as providing flexibility to switch
between processing oxide or sulphide ore.
A majority of the long lead items were ordered during H2 2023.
Construction is commencing in Q1 2024 with commissioning
expected in the first half of 2025.
Phase II Expansion Project
The Company believe that the large 10.3Moz Resource at
Syama is able to support a larger operation than what is
currently in place.
Therefore, in 2024 work is being initiated on the longer term
Phase II Expansion that targets production levels of over
400koz per annum at Syama. This is being done with
progressive engineering studies over the next two years.
The ultimate aim is to unlock the true potential of the large
gold Resource to endeavour to systematically create a Tier 1
mine over the next five years from the various large sulphide
deposits already identified along the 85km of strike.
RESOLUTE MINING LIMITED 2023 ANNUAL REPORT
17
Operations Review
MAKO
GOLD MINE
The Mako Gold Mine, located in eastern Senegal, is a high
quality, open pit mine with potential life extension through
several near-mine exploration opportunities.
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.
2023 AT A GLANCE
MINING
2.4Mt of ore
SALES
119,950oz
PRODUCTION
119,846oz
AISC
$1,373/oz
GROWTH POTENTIAL
Potential for further discovery
and additional mine life
extensions with the maiden
Mineral Resource Estimate at
the Tomboronkoto prospect.
PROCESSING
2.1Mt at 1.91g/t and
92.0% recovery
RESOURCES
935koz at 1.4g/t
RESERVES
402koz at 1.5g/t
18
RESOLUTE MINING LIMITED 2023 ANNUAL REPORT
Operations Review
Mako Operations Overview
In 2023, Mako poured 119.8koz of gold at an AISC of $1,373/oz,
compared to 129.4koz of gold at an AISC of $1,318/oz in the year
prior. AISC costs were up 4% on the prior year due to higher
costs associated with the planned pit cutback consisting
$25 million of waste stripping.
Due to the stripping gold production and ore mined at Mako
decreased from 2022. During the year 2.4Mt of ore was mined
(2022: 2.9Mt) albeit at a higher grade 1.89 g/t (2022: 1.79 g/t)
as higher grade zones started to be accessed at the bottom
of the pit.
The last portion of stripping is expected to finish at the end
of Q1 2024. During the final quarter of 2023 ore tonnes mined
increased by 9% to 540kt from the prior quarter as a result
of the ore material being exposed by the major strip.
Tonnes processed remained flat due to the increased throughput
of softer felsic material. Recovery increased from 91% to 93% due
to better recovery rates associated with felsic materials processed
and the optimisation of the new (Q3 2023) oxygen plant.
The reduced number of relines from four to three in 2023, and
dropping to two in 2024, has helped increase throughput rates as
well as reduced costs. Other cost reduction initiatives including
moving to owner operated power generation and continued
scrutiny of all contracts across the site should enable further
reductions in the AISC at Mako.
Looking forward we are expecting high grades for the next two
years as >2g/t material in the pit is mined.
2023
Mako Production and Cost Summary
Ore Mined
(t)
Ore Milled
(t)
Head Grade
(g/t)
2,367,808
2,118,221
Recovery
(%)
Production
(oz)
92.0
119,846
1.91
AISC
($/oz)
1,373
RESOLUTE MINING LIMITED 2023 ANNUAL REPORT
19
Operations Review
EXPLORATION
Exploration to expand oxide and sulphide resources and extend mine life at
Syama and Mako are key priorities for Resolute.
Intensive exploration programs were undertaken in Mali, Senegal and Guinea during 2024. In Mali, exploration drilling focused on
resource drilling at Syama North and oxide drilling programs on all the granted exploitation permits. In Senegal, an accelerated
reverse circulation (RC) drilling program was undertaken at the Tomboronkoto prospect leading to a maiden Mineral Resource
Estimate (MRE) being published in early 2024. In Guinea, exploration RC and diamond drilling continued on the newly discovered
Mansala Prospect.
Syama North
Resolute published a MRE update on 19 January 2023 for Syama North after extensive drilling programs in 2022. The January 2023
MRE contained 1.3 million ounces of Inferred Resources which require upgrading prior to be included into Ore Reserve calculations.
Diamond and RC drilling continued throughout the first half of 2023 with two drill rigs concentrating on converting the large
proportion of Inferred Resources to the Indicated category.
The majority of the drilling focused on achieving a nominal 50 x 50m pattern required for Indicated classification on areas of the
mineralisation which optimized during initial open pit engineering studies.
As part of the resource drilling program additional deeper diamond drillholes were also completed to extend the three north plunging
mineralized shoots. Results from this drilling campaign were in line with expectations with ore grade intervals seen in most holes.
The wide zone of gold mineralisation located in the centre of the A21 area, which has been previously described in ASX
announcements 30 August 2022 and 19 January 2023, was consolidated with infill drilling this year. Excellent wide intersections
continued down plunge to the north and drill lines were added to extend this zone of mineralisation. The drill section shown as Figure
1 displays the results of this additional drilling to the north and confirms the extension of the wide zone down plunge.
Drilling from the Quartz Vein Hill area continued to return high grade intersections which would be sufficient tenor for underground
mining following the initial open pit operation.
Figure 1. Syama North (A21 area) Cross Section at 1201850N showing drillholes and results
20
RESOLUTE MINING LIMITED 2023 ANNUAL REPORT
Operations Review
Figure 2. Syama North (A21 area) Longitudinal Section showing Mineral Resource Block Model historic oxide pits, proposed pits, and
drillhole pierce points.
The Syama Mineral Resource Estimation was updated in August 2023 using wireframe constrained Ordinary Kriged (OK) estimation
methodology, with identical parameters to the previous estimate published in January 2023.
The Global Mineral Resources at Syama North is now estimated at 37.9 million tonnes at 2.9g/t Au for 3.5 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 strategy of converting Inferred to Indicated Mineral Resources was very successful with now 28.3Mt containing 2.7Moz in the
Measured and Indicated Category a 47% increase over the previous MRE released in January 2023.
The total Mineral Resource has increased by 11.3% over the previous estimate driven entirely by an increase in volume of gold
mineralisation.
The Syama North gold deposit remains open down-dip over the entire 6km strike length. Diamond drilling is ongoing and expected
to continue in 2024.
Syama North Satellite Deposits Mineral Resource (>1g/t)
Oxidation
Oxide
Transitional
Sub-Total
Primary (sulphide)
Total
Tonnes
2,243,000
1,400,000
3,643,000
34,227,000
37,870,000
Grade
2.7
2.8
2.7
2.9
2.9
Table 1: Syama North Mineral Resources at August 2023 (1g/t cut off)
Syama North Satellite Deposits Mineral Resource (>1g/t)
Category
Tonnes
Grade
Measured
Indicated
M and I Sub-Total
Inferred
Total
2,548,000
25,767,000
28,315,000
9,556,000
37,871,000
3.2
3.0
3.0
2.6
2.9
Table 2: Syama North Mineral Resources at August 2023 (1.0g/t cut off)
Ounces
196,000
125,000
321,000
3,213,000
3,534,000
Ounces
262,000
2,461,000
2,723,000
811,000
3,534,000
RESOLUTE MINING LIMITED 2023 ANNUAL REPORT
21
Operations Review
Senegal
Tomboronkoto
Resolute is commenced its first Reverse Circulation (RC) drilling campaign at Tomboronkoto in mid-2023. A total of 54 holes for
8,900 metres was completed with the first phase program being completed by October 2023.
This was the first program completed by Resolute on the prospect and was focused on better defining the gold mineralisation zone
identified by previous explorers including Randgold Resources.
The drilling program achieved the goals as set out with assay results confirming the target zone with broad intersections of medium
to high-grade gold mineralisation in most holes drilled during the program.
Mineralisation is currently interpreted to be within a shear in the granodiorite unit. Intensity of gold mineralisation appears to
correlate with the intensity of pyrite development and exhibits good lateral and vertical continuity through the mineralised zone.
Mineralisation has a relatively simple geometry comprising a zone that varies from 30 to 60m in width, along the 1,700m strike length
drilled to date. The zone dips approximately 70⁰ to the south-southeast-a cross section representative of the typical mineralisation
shape is shown on Figure 3.
The Tomboronkoto MRE was developed in December 2023 using wireframe constrained Ordinary Kriged (“OK”) estimation
methodology, within two nested Leapfrog Indicator wireframes at 0.2 g/t Au and 0.75g/t Au. The MRE was announced to the ASX/
LSE markets on 24 January, 2024.
A Global Mineral Resource Estimate of 10.2Mt grading 1.2g/t Au for 403,000oz was estimated at a cut-off of 0.5g/t (in-line with the
current cut-off grade used to define Mako’s Mineral Resources). At a higher 1g/t cut off the grade increases to 2.2g/t with a total of
264,000oz Au. Further cost analysis is required to determine the appropriate cut-off grade for Tomboronkoto.
To date the Tomboronkoto deposit is only drilled to 100m below surface and is open along strike and down dip. Follow up drilling
currently underway is expected to expand the Mineral Resources.
Preliminary metallurgical test work was undertaken by Resolute on Reverse Circulation (“RC”) samples from the recent drilling
campaign conducted at Tomboronkoto. The sample selection encompassed different ore types of the ore body across various depths
from the surface. Leach tests were conducted under conditions that closely mimic the current Mako Plant CIL circuit parameters. The
results from the leach test work demonstrate that the Tomboronkoto ore body.
Drilling at Tomboronkoto will focus on open pit extractable Mineral Resources and will generally be restricted to mineralisation within
200m of the surface. The 2024 exploration program at Tomboronkoto comprises a drilling program of 20,000m of RC drilling and
3,000m of diamond drilling with a budget cost of US$4 million.
22
RESOLUTE MINING LIMITED 2023 ANNUAL REPORT
Operations Review
Figure 3. Project Geological setting and Location Diagram
Bantaco JV
On 14 December 2023 Resolute signed a Joint Venture with SNEPAC, a local Senegalese company, to earn into the Bantaco prospect
located east of Mako – see Figure 3 for location.
The Bantaco project presents an opportunity in the short term to find an economically exploitable gold resource to extend the life
of Mako.
The project area has extensive artisanal workings in two main locations, Baisso in the southwest and Bantaco in the northeast
of the permit.
Exploration activity is expected to commence in the first quarter of 2024. The approved exploration budget for Bantaco for 2024
is US$1.4 million which will include a 10,000m RC drilling program, over areas of known outcropping mineralisation.
RESOLUTE MINING LIMITED 2023 ANNUAL REPORT
23
Operations Review
Laminia Joint Venture
Guinea
Resolute signed a Joint Venture on the Laminia Project on
29 April 2022 which is located east and contiguous with the
Bantaco JV area – see figure 3. The Laminia Project covers the
southern extensions of the Massawa Shear zone which controls
the gold mineralisation hosted in the Massawa Deposits held by
Endeavour Mining Corporation.
Auger drilling in the northwestern part of the permit covering the
southern extensions of the Massawa shear zone, delineated a
3km gold anomaly open to the South. Subsequent RC drilling
encountered encouraging results.
The eastern part of the permit covers the southern extension
of the Makosa (Thor Exploration) and Makabingui (Bishop
Resources) shears. Gold in soil results highlighted two long
anomalies along the shears which will be tested by auger drilling.
Resolute controls four gold projects in Guinea located within and
along the margin of the Siguiri Basin. Work carried out during
2023 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 2023 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 2024.
24
RESOLUTE MINING LIMITED 2023 ANNUAL REPORT
ORE RESERVES AND
MINERAL RESOURCES
RESOLUTE MINING LIMITED 2023 ANNUAL REPORT
25
Ore Reserves and Mineral Resources
ORE RESERVES AND
MINERAL RESOURCES
Significant increase in mineral resources and an increase in
ore reserves after accounting for 2023 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
Competent Persons
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.
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
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
26
RESOLUTE MINING LIMITED 2023 ANNUAL REPORT
Ore Reserves and Mineral Resources
ORE RESERVES STATEMENT
as at 31 December 2023
Ore Reserves
Proved
Probable
Total Reserves
Group
Share
Tonnes
g/t
oz
Tonnes
g/t
oz
Tonnes
g/t
oz
oz
(000s)
(000s)
(000s)
(000s)
(000s)
(000s)
(000s)
Mali
Syama Underground
Syama Stockpiles
Sub Total (Sulphides)
Satellite Deposits
Stockpiles (Satellite
Deposits)
Sub Total Satellite
Deposits
Tabakoroni Underground
Tabakoroni Open Pit
Tabakoroni Satellite
Deposits
Tabakoroni Stockpiles
Sub Total Tabakoroni
Mali Total
Senegal
Mako
Mako Stockpiles
Senegal Total
Total Ore Reserves
0
1,071
1,071
285
919
1,204
0
0
0
975
975
3,250
345
4,100
4,445
7,695
0.0
1.8
1.8
2.4
1.5
1.7
0
0
0
1,347
1,347
1,618
1.9
1.0
1.1
1.3
0
61
61
22
44
23,588
1,823
25,411
12,566
1,403
2.5
1.3
2.4
2.6
1.0
1,865
23,588
79
2,894
1,943
26,482
1,033
12,852
43
2,322
2.5
1.5
2.4
2.6
1.2
80%
1,492
112
1,865
139
2,004
1,603
1,055
844
87
70
66
13,969
2.4
1,076
15,174
2.3
1,142
914
0
0
0
42
42
5,028
4,740
766
5,028
4,738
766
0
0
0
0
0
0
0
0
0
0
0
975
5,028
4,738
766
6,003
0
0
1,347
4,187
0
0
42
808
90%
689
0
0
38
727
169
44,408
2,651
3,785
47,659
2,580
3,954
3,244
21
131
152
321
3,652
0
3,652
48,061
2
0
2
3
250
0
250
3,997
4,100
8,097
4,035
55,756
2.1
1.0
1.5
2.4
90%
244
118
362
271
131
402
4,356
3,606
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. Syama Underground mine planning is based on a cut-off grade of 2g/t.
4. Syama Satellite Reserves are reported above 0.8g/t cut-off.
5. Syama North Sulphide Reserves are reported above 1.0g/t cut-off.
6. Tabakoroni Underground Reserves are reported above a 2.75g/t cut-off.
7. Tabakoroni Satellite Reserves are reported above 1.1g/t cut-off.
8. Mako Reserves are reported above 0.9g/t cut-off.
RESOLUTE MINING LIMITED 2023 ANNUAL REPORT
27
Ore Reserves and Mineral Resources
MINERAL RESOURCE STATEMENT
as at 31 December 2023
Mineral Resources
Measured
Indicated
Inferred
Total Resources
Group
Share
Tonnes g/t
oz
Tonnes g/t
oz
Tonnes g/t
oz
Tonnes g/t
oz
oz
(000s)
(000s)
(000s)
(000s)
(000s)
(000s)
(000s)
(000s) (000s)
Mali
Syama Underground
Stockpiles (Sulphide)
24,023
1,071
3.1
1.8
2,356
24,940
2.6
2,061
1,903
62
1,777
1.3
75
0
Sub Total Sulphides
25,094 3.0 2,418
26,717
2.5 2,136
1,903
80 %
2.0
0.0
2.0
2.5
1.1
124
50,866
2.8
4,540
3,632
0
2,848
1.5
137
110
124
53,714
2.7
4,677
3,742
1,013
46,263
2
3,343
2.7
1.2
4,034
3,227
131
105
30,032
2.8
2,709
12,783
1,449
45
46
Satellite Deposits
3,448
Stockpiles (Satellite Deposits)
1,848
Sub Total Satellite Deposits
5,296
Old Tailings
Tabakoroni Open Pit
Tabakoroni Underground
Tabakoroni Satellite Deposits
Tabakoroni Stockpiles
Sub Total Tabakoroni
0
33
6
191
954
1,184
2.8
1.4
2.3
0.0
3.9
3.5
2.0
1.5
1.6
311
85
0
4
1
12
46
63
1.0
2.7
0.0
5.0
4.8
0.0
0.0
0
205
5,179
0
0
396
31,481
2,754
12,829 2.5
1,015
49,606 2.6 4,165
3,332
0
17,000
0.7
365
17,000
0.7
365
292
33
792
0
0
1
1,644
0
0
6.0
3.5
0.0
0.0
0
183
0
0
239
6,829
191
954
5,384
4.8
826
1,646
3.5
183
8,214
90%
34
878
11
41
38
976
12
46
1,071
964
4.9
4.4
2.0
1.5
4.1
Mali Total
31,574 2.8 2,876
63,582 2.8 5,715
33,378 1.6
1,686 128,534 2.5 10,278 8,330
Senegal
Mako
Tombo
Mako Stockpiles
Senegal Total
507
0
4,100
4,608
1.6
0.0
1.0
1.1
25
0
131
6,234
0
0
156
6,234
1.8
0.0
0.0
1.8
363
464
0
0
10,204
0
0.9
1.2
0.0
13
7,206
403
10,204
0
4,100
1.7
1.2
1.0
401
403
131
363
10,668 1.2
416
21,510
1.4
935
90%
361
363
118
842
Total Mineral Resources
36,182 2.6 3,033
69,816 2.7 6,078 44,046 1.5
2,102 150,044 2.3 11,213
9,171
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 1.5g/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.
9. Tomboronkoto Resources are reported above a cut-off of 0.5g/t.
28
RESOLUTE MINING LIMITED 2023 ANNUAL REPORT
FINANCIAL
REVIEW
RESOLUTE MINING LIMITED 2023 ANNUAL REPORT
29
Financial Review
30
RESOLUTE MINING LIMITED 2023 ANNUAL REPORT
FINANCIAL PERFORMANCE
The financial performance of Resolute for the year ended 31 December 2023 is summarised below:
Profit and Loss Analysis1
$'000
Revenue
Cost of sales excluding depreciation and amortisation
Royalties
Administration and other corporate expenses
Exploration expenses
EBITDA2
Depreciation and amortisation
Net interest and finance costs
Inventories net realisable value movements and obsolete consumables
Fair value movements and treasury transactions
Other
Net profit before tax
Income tax expense
Reported net profit after tax
Financial Review
2023 Group 2022 Group
631,073
651,129
(400,378)
(433,924)
(36,313)
(39,574)
(18,450)
(14,393)
(14,720)
(14,615)
161,211
148,623
(81,044)
(85,894)
(11,177)
(15,273)
(12,665)
(36,077)
22,442
17,555
(14,822)
(10,662)
96,324
(14,104)
(4,791)
(20,560)
91,533
(34,664)
1. Amounts presented above are aggregate balances of certain line items presented in the Financial Statements.
2. This is a non-GAAP measure with no standard meaning under IFRS.
Group Revenue of $631.1 million in 2023 was 3% lower than the
comparative period as the increase in the average realised gold
price of $1,920/oz (2022: $1,819/oz) was offset by an expected
decrease in gold sales of 329,061oz compared to prior year
(357,447oz).
Group EBITDA of $161.2 million in 2023 was a 9% improvement
on the comparative period driven by a significant decrease in
cost of sales as well as the one-time non-cash benefit of
$16.4 million relating to the reversal of historic tax provisions
in Senegal.
Cost of sales excluding depreciation and amortisation decreased
to $400.4 million compared to $433.9 million in 2022. This is due
to our ongoing cost reduction initiatives as well as the reversal
of historic provisions related to the tax exoneration timing
dispute in Senegal resulting in a onetime non-cash benefit of
$16.4 million.
Administration and other corporate expenses were higher in
2023 due to one-off expenses because of the relocation of select
back-office support functions from Perth, Australia to London,
United Kingdom to align time zones with operations.
Net interest and finance expenses decreased in 2023 to
$11.2 million (2022: $15.3 million) due to reduced debt levels
relative to 2022. During 2023 Resolute made $55.0 million in
principal repayments ($30.0 million and $25.0 million in Q1 and
Q3 respectively). $25.0 million remains outstanding on the Term
Loan portion of the Syndicated Facility Agreement and is due to
be paid in March 2024.
RESOLUTE MINING LIMITED 2023 ANNUAL REPORT
31
Financial Review
Financial Performance (continued)
Movements in the cash and bullion1 balances are summarised in the cashflow waterfall below
1. This financial performance indicator is a non-IFRS measure and unaudited.
Financial Position
Net cash at 31 December 2023 of $14.0 million comprised of $67.6 million of cash and $17.6 million of bullion (valued at spot price
at 31 December 2023) less $25.0 million of syndicated debt and $46.2 million of overdraft facilities. This represents a $45.6 million
reduction from the $31.6 million net debt position at the end of 2022.
Available liquidity of $165.2 ($189.0 million in 2022) includes cash and gold sales receivable of $67.6 million, bullion of $17.6 million, and
the undrawn RCF of $80.0 million. Total borrowings at 31 December 2023 were $71.2 million, comprising $25.0 million on the Term
Loan Facility and $46.2 million on the overdraft facilities in Mali.
Resolute continued to invest in the business in 2023 with spending on development, property, plant, and equipment totalling
$67.6 million (2022: $63.4 million) including outlays for tailings facilities across both sites, capitalised stripping costs and project
capital at Syama.
32
RESOLUTE MINING LIMITED 2023 ANNUAL REPORT
RISK
MANAGEMENT
RESOLUTE MINING LIMITED 2023 ANNUAL REPORT
33
Risk Management
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.
Systemising Resolute’s risk management approach across the
Group ensures a standardised risk approach is consistently
applied and enables improved reporting.
34
RESOLUTE MINING LIMITED 2023 ANNUAL REPORT
Risk and Mitigation Summary
The following table provides a high-level account of Group material exposures1
▪ Permanent disability (physical
▪ Fatality
S
T
C
A
P
M
▪
or mental)
Injury and illness
I
L
A
I
T
N
E
T
O
P
Risk Management
▪ Legal and legislative implications
▪ Financial loss
▪ Reputational damage
RISK
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
▪
Industry standard safety
management systems
▪ Embedded safety
conscious culture
▪ Staff safety training programs
G
N
I
T
A
G
I
T
I
M
S
E
C
I
T
C
A
R
P
▪ Contractor pre qualification,
induction and training
▪ Regular review processes
and procedures
▪ Critical Hazard Management
▪ High risk training systems and
competency verification
S ▪ Kidnap/ransom
T
C
A
P
M
▪ Compromised asset security
▪ Theft (e.g. fuel, inventory etc.)
I
▪ Financial loss
▪ Reputational damage
Increased attrition
▪
S ▪ Security Management Framework
E
▪ Specialist internal/external security
C
I
T
C
A
R
P
services providers
▪ Crisis and Emergency
Management System
▪ Multi-source real-time intelligence
▪ Regular review and audits
▪ Strong stakeholder relations and
engagement
S ▪ Material increase in
operating costs
T
C
A
P
M
suspended
▪ Licence to operate threatened/
I
Inability to acquire debt
▪
funding/financing
▪
▪ Reputational damage
▪ Loss of investor confidence
L
A
I
T
N
E
T
O
P
G
N
I
T
A
G
I
T
I
M
L
A
I
T
N
E
T
O
P
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
▪ Environmental licence conditions
▪ Robust environmental monitoring
▪ Ongoing operational emissions
modelling
▪ Regular community interactions
and engagement
▪ Continual air quality monitoring
▪ External assurance (tailings,
▪ Group Sustainability Strategy and
environmental etc)
net zero commitment
▪ Loss of, or significant reduction to,
▪ Productivity and cost of production
▪
licence to operate
Increased regulation and
operating scrutiny
▪ Reputational damage and
deterioration of social licence
to operate
affected
▪ Supply chain disruptions
▪ Ongoing stakeholder/government
▪ Active proponents of non-political
engagement
government agendas
▪ Dedicated Country Manager and
▪ Mining Agreements in each operating
other in-country expertise
▪ Strong local development
track record and local
stakeholder support
jurisdiction
▪ Business continuity planning
RESOLUTE MINING LIMITED 2023 ANNUAL REPORT
35
Risk Management
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
RISK
Bribery or corruption
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
Infectious disease
management protocols
Implementation of WHO guidelines
and other industry standards
▪
▪
▪ Primary, occupational and
emergency medical capability
established at each asset
S ▪ Compliance breach
▪ Financial impact
T
C
▪ Reputational damage
A
P
M
I
L
A
I
T
N
E
T
O
P
G
N
I
T
A
G
I
T
I
M
S
E
C
I
T
C
A
R
P
▪ Ongoing Anti-Bribery and
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
RISK
Inability to achieve and
maintain required/planned
operational performance to
meet ROI and shareholder
expectations
RISK
Project delivery failure
L
A
I
T
N
E
T
O
P
G
N
I
T
A
G
I
T
I
M
L
A
I
T
N
E
T
O
P
G
N
I
T
A
G
I
T
I
M
S ▪ Financial impact
T
C
A
P
M
▪ Negative operational impacts
▪ Reputational damage and unmet
shareholder expectations
I
S ▪ Established Life of Mine, budgeting
and forecasting processes
E
C
▪ Maintenance schedules and
I
T
C
A
R
P
▪ Mine performance management
processes
and reporting processes
S ▪ Suboptimal project outcomes
▪ Future operational impacts
T
C
▪ Safety of staff
A
P
M
I
S ▪ Established project methodology
E
▪ Project governance structures
C
I
T
C
A
R
P
▪ Use of third-party technical
advisors and consultants
in place
▪ Reputational damage impacting ability
to maintain and attract staff/contractors
to site
▪ Deterioration of government/stakeholder
relations
▪ Medical review and external audits
▪ Occupational health assessments/
▪
surveillance
Injury and medical emergency
evacuation protocols
▪ Malaria mitigation program
Independently operated whistle-
▪
▪ blower hotline
▪ Financial system controls in place
▪ Fraud risk assessments
▪ Regular review and audits
Inability to service debt
▪ Significant operational delays
▪
▪ Share price decline
▪ Hostile takeover
▪ 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
▪ Financial impact
▪ Reputational damage
▪ Failure to meet performance indicators
▪ Project monitoring and reporting
processes
▪ Procurement and contract management
procedures and practices
▪ Regular review and audits
36
RESOLUTE MINING LIMITED 2023 ANNUAL REPORT
Risk Management
Risk and Mitigation Summary
The following table provides a high-level account of Group material exposures1
RISK
Critical operational
or informational
technology failure
▪ Loss of critical information
S ▪ Financial loss
T
C
A
P
M
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
▪ Network security design
and firewalls
▪ Network backups and disaster
▪ Network penetration testing
▪
Information technology and operational
technology convergence strategy
recovery processes
▪ Ongoing IT training
▪
IT infrastructure upgrade
programs
▪ Regular review and audits
RISK
Human Rights exposures
associated with Resolute’s
business activities threatens
business continuity/viability
RISK
Inability to maintain/grow
Resources and Reserves
resulting in material decline
in market confidence and
Company valuation
RISK
Inflationary impact on costs
RISK
Capital & Liquidity
S ▪ Reputational damage
T
C
A
P
M
▪ Loss of investor confidence
▪ Decreased ability to acquire debt
funding/financing
I
L
A
I
T
N
E
T
O
P
▪ Deterioration in key stakeholder
relationships
▪ Supply chain disruptions
▪ Suspension/revocation of licence
to operate
G
N
I
T
A
G
I
T
I
M
S
E
C
I
T
C
A
R
P
▪ Human Rights provisions in all
contract service agreements with
key suppliers
▪ Labour law compliance for all
▪ Training and education of workforce
▪ Stakeholder engagement
▪ Human Rights Policy
▪ Modern Slavery Voluntary Statement
employment practices
▪ Commitment to Voluntary
Principles of Security and
Human Rights
S ▪ Financial impact
T
C
A
P
M
▪ Reputational damage
▪ Share price decline
I
L
A
I
T
N
E
T
O
P
G
N
I
T
A
G
I
T
I
M
S
E
C
I
T
C
A
R
P
▪ Active well-funded
exploration campaigns
▪ Highly qualified professional
personnel
▪ Established relationships with
multiple drilling contractors for
contract labour/technical
capability
Inability to service debt
▪
▪ Hostile takeover
▪ Effective utilisation of external
consultants to broaden capability
▪ Well managed and controlled mining
tenement administration
▪ Stakeholder engagement
▪
Identification and acquisition of new
exploration projects
S
T
C
A
P
M
I
▪ 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
▪
▪
S ▪ Maintaining a strong balance
E
sheet with low gearing levels
C
I
▪ Maintain conservative levels
T
C
A
R
P
of liquidity
▪ 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
S ▪
T
C
A
P
M
I
Inability to refinance existing debt
facilities may lead to more
expensive funding
▪ May require additional equity to
pay down debt
S ▪ Meet or exceed budgeted
E
C
I
T
C
A
R
P
production and costs to pay
down remaining debt
▪ Seek to early refinance of
debt facilities
▪ Banks may impose onerous reporting and
repayment schedules
▪ Reputational damage
▪ Loss of investor confidence
▪ Continual focus on cost control
▪ Maintain prudent levels of hedging which
deliver profitable margins
L
A
I
T
N
E
T
O
P
G
N
I
T
A
G
I
T
I
M
L
A
I
T
N
E
T
O
P
G
N
I
T
A
G
I
T
I
M
RESOLUTE MINING LIMITED 2023 ANNUAL REPORT
37
Risk Management
Risk and Mitigation Summary
The following table provides a high-level account of Group material exposures1
L
A
I
T
N
E
T
O
P
RISK
Failure to deliver technology
to support operational and
strategic needs and/or
exposes Resolute to
cyber attack
S ▪ Financial impact (failure to realise
T
C
A
P
M
efficiencies and become
uneconomical)
▪ Shift in skillset required
▪ Data privacy and security issue
IFS deployed across Corporate
office, Syama and Bamako
I
▪
▪ Operational impacts
▪ Failure to report (financial,
operational etc)
▪ Cyber Security Policy and
standards implemented
▪ End user computing remediation
▪ Significant cyber security remediation
G
N
I
T
A
G
I
T
I
M
S
E
C
I
T
C
A
R
P
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
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)
▪ Long-term environmental damage
▪ Health decline/fatality
▪ Asset Shutdown
▪ Reputational damage
▪ Loss of investor/stakeholder confidence
▪ Annual external audits
▪ Piezometers – ground stability
▪ Deposition strategies
▪ Operation and design parameters
▪ Specialist TSF contractors/expertise
(non-engineering)
RISK
Catastrophic failure of
Tailings Storage Facility
(TSF)
L
A
I
T
N
E
T
O
P
S ▪ Suspension/revocation of
operating licence
T
C
A
P
M
▪ Social activism/outrage
▪ Financial penalties
▪ Significant production impacts
▪ Tailings governance framework
▪ Daily, weekly, monthly TSF
I
monitoring
▪ Environmental monitoring
e.g. ground/surface water quality
▪ Engineer on Record e.g.
▪ Golder, Advision, Knight Piesold
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
RESOLUTE MINING LIMITED 2023 ANNUAL REPORT
CORPORATE
GOVERNANCE
RESOLUTE MINING LIMITED 2023 ANNUAL REPORT
39
Corporate Governance
CORPORATE GOVERNANCE
Resolute is committed to the highest standards of corporate governance
and ethical conduct.
Director
R Non-Executive
O
T
C
E
R
D
I
I
D June 2017
E
T
N
O
P
P
A
Director
R Non-Executive
O
T
C
E
R
D
I
I
D September 2018
E
T
N
O
P
P
A
Director
R Non-Executive
O
T
C
E
R
D
I
I
D May 2021
E
T
N
O
P
P
A
Director
R Non-Executive
O
T
C
E
R
D
I
I
D October 2021
E
T
N
O
P
P
A
Director
R Non-Executive
O
T
C
E
R
D
I
I
D June 2023
E
T
N
O
P
P
A
Director
R Non-Executive
O
T
C
E
R
D
I
I
D March 2024
E
T
N
O
P
P
A
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.
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 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/
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/
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 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
BSc Eng
DIRECTOR
Terry Holohan
BSc CEng MIMMM
Non-Executive
Director and
Chairman (appointed
Chairman June 2017)
February 2014
F
O
E
L
O
R
T
S
R
I
F
R
O
T
C
E
R
D
I
I
D
E
T
N
O
P
P
A
F
O
E
L
O
R
R Managing Director
O
and Chief Executive
T
C
Officer
E
R
D
I
T
S
R
I
F
I
D May 2022
E
T
N
O
P
P
A
DIRECTOR
Mark Potts
BSc (Hons), GAICD
(Until 20 March 2024)
DIRECTOR
Sabina Shugg
BSc (Mining
Engineering), MBA,
GAICD
DIRECTOR
Adrian Reynolds
MSc, GradDipMinEng
DIRECTOR
Simon Jackson
B.Com FCA
DIRECTOR
Keith Marshall
BSc Eng
DIRECTOR
Adrienne Parker
LLB (Hons)
F
O
E
L
O
R
T
S
R
I
F
F
O
E
L
O
R
T
S
R
I
F
F
O
E
L
O
R
T
S
R
I
F
F
O
E
L
O
R
T
S
R
I
F
F
O
E
L
O
R
T
S
R
I
F
F
O
E
L
O
R
T
S
R
I
F
40
RESOLUTE MINING LIMITED 2023 ANNUAL REPORT
Corporate Governance
The table below sets out the detail of the independence of each Director as at 31 December 2023.
Director
Martin Botha
Terry Holohan
Mark Potts
Sabina Shugg
Adrian Reynolds
Keith Marshall
Simon Jackson
Non-Executive
Independent
Yes
No
Yes
Yes
Yes
Yes
Yes
Yes
No
Yes
Yes
Yes
Yes
Yes
Gender
Male
Male
Male
Female
Male
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 2023, the
Remuneration Committee consisted of the
following Non-Executive Directors:
Sustainability Committee
As at 31 December 2023, the
Sustainability Committee consisted of the
following members:
▪ Audit and Risk Committee
▪ Mr M. Potts (Chair)
▪ Mr T. Holohan (Chair)
▪ Remuneration Committee
▪ Nomination Committee
▪ Sustainability Committee
Audit and Risk Committee
As at 31 December 2023, 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 2023 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
▪ Mr K. Marshall
▪ Ms S. Shugg
As at 31 December 2023 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 2023, 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 2023 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/
▪ Ms S. Shugg
▪ Mr A. Reynolds
▪ Mr M. Potts
As at 31 December 2023 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
atwww.rml.com.au/about-us/corporate-
goverance/
RESOLUTE MINING LIMITED 2023 ANNUAL REPORT
41
Corporate Governance
42
RESOLUTE MINING LIMITED 2023 ANNUAL REPORT
FINANCIAL
REPORT
RESOLUTE MINING LIMITED 2023 ANNUAL REPORT
43
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 2023.
Corporate Information
Resolute Mining Limited is a company limited by shares that
is incorporated and domiciled in Australia.
Directors
The Directors of Resolute in office at the end of the 2023
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
2023 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
—
50,000
234,839
27,273
—
548,517
—
6,950,417
—
—
—
—
6,950,417
As at the date of this report, there were no options on issue held
by Directors.
Nature of Operations and Principal
Activities
The principal activities of entities within the consolidated entity
during the year were:
▪ 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
There have been no significant events after the reporting date.
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 2023 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 2023 ANNUAL REPORT
45
Financial Report
DIRECTORS’ REPORT
1. LETTER FROM THE CHAIR OF THE 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 2023.
The Company’s last Remuneration Report for the year ended
31 December 2022 received substantial support at the
Company’s annual general meeting held on 25 May 2023, with
98.59% 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 2023. We continue to strive to provide a high level of
disclosure and transparency of our remuneration framework,
particularly with regard to:
Proposed Remuneration Changes for 2024
Short Term and Long Term Incentive Plans
The STI and LTI framework is under revision for the Group
related to 2024 exercise.
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.
▪ Objectives of our remuneration framework
▪ Pay mix (the disclosure of the pay mix and total remuneration
opportunity is discussed at target remuneration)
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.
▪ 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
2023 for the KMP STIP outcome was 77% of the maximum
outcome possible.
Performance Rights were granted in 2021 (performance hurdle
tested) with a vesting date of 31 December 2023. Of the
3,747,596 Performance Rights granted, zero Performance
Rights vested on 31 December 2023.
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
The relative TSR hurdle, which accounts for 100% of the total
vesting outcome, was not achieved. As a result, no Performance
Rights were granted.
Mark Potts
Chair – Remuneration Committee
The next period in which an LTIP grant will be tested to
determine the level of vesting is 31 December 2024, for awards
granted on 1 January 2022.
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$15,000. Members of Committees do not receive a separate
fee. There was no increase in NED fees during 2023 and since
1 March 2019.
46
RESOLUTE MINING LIMITED 2023 ANNUAL REPORT
Financial Report
DIRECTORS’ REPORT
Remuneration 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.
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.
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
▪ Keith Marshall
▪ 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.
During 2023, 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 dollars comparatives between 2023 and
2022, the Australian dollars compensation paid during the year
ended 31 December 2023 was converted to US dollars at the
average exchange rate of US$1: A$1.4934 and the British Pound
Sterling was converted to US dollars at the average exchange
rate of US$1: £0.7898. The Australian dollars compensation paid
during the year ended 31 December 2022 was converted to US
dollars at the average exchange rate of US$1: A$1.4810 and the
British Pound Sterling was converted to US dollars at the
average exchange rate of US$1: £0.8113.
RESOLUTE MINING LIMITED 2023 ANNUAL REPORT
47
Financial Report
DIRECTORS’ 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
l
d
e
h
n
o
i
t
i
s
o
P
l
d
e
h
n
o
i
t
i
s
o
P
l
d
e
h
n
o
i
t
i
s
o
P
l
d
e
h
n
o
i
t
i
s
o
P
r
a
e
y
e
h
t
g
n
i
r
u
d
r
a
e
y
e
h
t
g
n
i
r
u
d
r
a
e
y
e
h
t
g
n
i
r
u
d
r
a
e
y
e
h
t
g
n
i
r
u
d
Chief Operating Officer
Chief Financial Officer
(until 31 March 2023)
Chief Financial Officer
(from 27 February 2023)
General Counsel and
Company Secretary
(until 19 January 2024)
DIRECTOR
M. Botha
DIRECTOR
T. Holohan
DIRECTOR
S. Jackson
DIRECTOR
S. Shugg
DIRECTOR
M. Potts
DIRECTOR
A. Reynolds
DIRECTOR
K. Marshall
l
d
e
h
n
o
i
t
i
s
o
P
l
d
e
h
n
o
i
t
i
s
o
P
l
d
e
h
n
o
i
t
i
s
o
P
l
d
e
h
n
o
i
t
i
s
o
P
l
d
e
h
n
o
i
t
i
s
o
P
l
d
e
h
n
o
i
t
i
s
o
P
l
d
e
h
n
o
i
t
i
s
o
P
r
a
e
y
e
h
t
g
n
i
r
u
d
r
a
e
y
e
h
t
g
n
i
r
u
d
r
a
e
y
e
h
t
g
n
i
r
u
d
r
a
e
y
e
h
t
g
n
i
r
u
d
r
a
e
y
e
h
t
g
n
i
r
u
d
r
a
e
y
e
h
t
g
n
i
r
u
d
r
a
e
y
e
h
t
g
n
i
r
u
d
Non-Executive Director
(Non-Executive Chairman)
EXECUTIVE
G. Montgomery
EXECUTIVE
D. Warden
EXECUTIVE
C. Eger
EXECUTIVE
R. Steenhof
Managing Director and
Chief Executive Officer
Non-Executive Director
Non-Executive Director
Non-Executive Director
(until 20 March 2024)
Non-Executive Director
Non-Executive Director
(from 19 June 2023)
48
RESOLUTE MINING LIMITED 2023 ANNUAL REPORT
Financial Report
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.
DIRECTORS’ REPORT
Remuneration 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 caliber
Executives, with relevant international experience
▪ 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.
RESOLUTE MINING LIMITED 2023 ANNUAL REPORT
49
Financial Report
DIRECTORS’ 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
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.
t
n
e
n
o
p
m
o
C
n
o
i
t
a
r
e
n
u
m
e
R
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
responsibilities 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.
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.
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 2023 ANNUAL REPORT
Financial Report
DIRECTORS’ REPORT
Remuneration 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. The only
changes to the FAR are outlined below:
Name
Richard Steenhof1
2022 FAR
AUD
297,657
2023 FAR
AUD
338,846
Increase
%
14%
1. Change in FAR was due to Mr Steenhof becoming General Counsel and Company Secretary
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 225% of FAR. A target STI opportunity of 50% of FAR aligns partially
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%)
▪ cash 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.
RESOLUTE MINING LIMITED 2023 ANNUAL REPORT
51
Financial Report
DIRECTORS’ REPORT
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 target
▪ Target Performance = 100% of KPI target
▪ Stretch performance = 150% of KPI target.
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
RESOLUTE MINING LIMITED 2023 ANNUAL REPORT
Financial Report
DIRECTORS’ REPORT
Remuneration 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 between 50%
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
2023 were:
▪ Asante Gold Corporation
▪ 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
▪ Tietto Minerals
▪ 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?
With the hurdle, Resolute’s goals is to manage achievements against comparators and
outperform our peers to ensure sustainable growth to our share price above the market.
RESOLUTE MINING LIMITED 2023 ANNUAL REPORT
53
Financial Report
DIRECTORS’ 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.
How is vesting determined?
Therefore, LTI awards have a three-year performance period and provide a structure that
is focused on long term sustainable Shareholder value generation.
Relative TSR performance
Less than 50th percentile
At the 50th percentile
Between 50th and 75th percentile
Performance Vesting Outcomes
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 exceptional circumstances.
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
RESOLUTE MINING LIMITED 2023 ANNUAL REPORT
Financial Report
DIRECTORS’ REPORT
Remuneration 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
2023
31 December
2022
31 December
2021
31 December
2020
31 December
2019
Net profit/(loss) after tax
$'000
91,533
(34,665)
(367,471)
4,995
(78,824)
Basic earnings/(loss) per share
cents/share
Share price
Dividends
$A/share
cents/share
3.08
0.45
—
(2.85)
0.20
—
(28.92)
0.39
—
1.62
0.71
—
(8.30)
1.26
—
KMP remuneration disclosures
Table 1 below shows the remuneration expense recognised for each KMP for the year ended 31 December 2023. Table 2 below shows
the remuneration expense recognised for each KMP for the year ended 31 December 2022.
Table 1 – Statutory Executive KMP remuneration for the year ended 31 December 2023
Short Term Benefits
Post
Employ
ment
Benefits
Long
Term
Benefits
Share
Based
Payments
1
s
t
i
f
e
n
e
B
y
r
a
t
e
n
o
M
n
o
N
$
2
e
v
i
t
n
e
c
n
I
m
r
e
T
t
r
o
h
S
$
5
s
t
n
e
m
y
a
P
y
c
n
a
d
n
u
d
e
R
$
e
s
n
e
p
x
E
e
v
a
e
L
l
a
u
n
n
A
$
n
o
i
t
a
r
e
n
u
m
e
R
e
s
a
B
$
n
o
i
s
n
e
P
/
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
$
Performance
Related
d
n
a
e
v
i
t
n
e
c
n
I
m
r
e
T
t
r
o
h
S
i
s
t
h
g
R
e
c
n
a
m
r
o
f
r
e
P
%
i
s
t
h
g
R
e
c
n
a
m
r
o
f
r
e
P
%
T. Holohan
C. Eger3
506,457
4,533
253,229
—
58,437
45,581
392,504
2,401
196,252
—
22,644
35,325
G. Montgomery
364,906
2,599
197,658
—
30,409
—
—
—
—
376,687
1,244,924
20 % 30 %
98,424
747,550
26 % 13 %
154,413
749,985
26 % 21 %
R. Steenhof
210,928
1,004
114,638
—
7,070
17,642
6,980
(17,809) 340,453
34 % (5) %
D. Warden4
87,887
—
—
289,688
—
8,468
(12,986)
(70,775) 302,282
(23) % (23) %
Total
1,562,682 10,537
761,777
289,688
118,560 107,016
(6,006) 540,940
3,385,194
1. 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.
2. The STI for the year ended 31 December 2023 will be paid in cash in April 2024.
3. Mr C. Eger was appointed as Chief Financial Officer effective 27 February 2023.
4. Mr D. Warden ceased employment as Chief Financial Officer effective 31 March 2023.
5. This relates to a redundancy payment for Mr D. Warden after he ceased employment on 31 March 2023.
6. The table above is presented in United States dollar currency. The remuneration for 2023 was converted at the average exchange rate of US$1:A$1.4934 and an average
exchange rate of US$1:£0.7898. Mr T. Holohan, C. Eger and G. Montgomery are remunerated in £ and the other KMPs are remunerated in A$.
RESOLUTE MINING LIMITED 2023 ANNUAL REPORT
55
Financial Report
DIRECTORS’ REPORT
3d. Remuneration Policy and Outcomes (continued)
Table 2 – Statutory Executive KMP remuneration for the year ended 31 December 2022
Short Term Benefits
Post
Employ
ment
Benefits
Long
Term
Benefits
Share
Based
Payments
1
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
$
2
e
v
i
t
n
e
c
n
I
m
r
e
T
t
r
o
h
S
$
6
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
$
T. Holohan3
S. Gale4
499,619
—
180,775
69,022
52,118
44,662
—
127,850
974,047
144,786
2,086
—
—
18,941
6,534
(25,102)
(298,179) (150,934)
G. Montgomery5
91,678
—
64,650
—
37,558
—
—
38,068
231,954
D. Warden
331,222
6,258
136,207
67,503
29,896
16,975
9,772
64,042
661,875
R. Steenhof
186,383
6,258
80,516
—
18,574
16,697
9,425
18,166
336,019
Total
1,253,688 14,602
462,148
136,525
157,087
84,868
(5,905)
(50,053) 2,052,961
Performance
Related
d
n
a
e
v
i
t
n
e
c
n
I
m
r
e
T
t
r
o
h
S
i
s
t
h
g
R
e
c
n
a
m
r
o
f
r
e
P
%
i
s
t
h
g
R
e
c
n
a
m
r
o
f
r
e
P
%
32
—
44
30
29
13
—
16
10
5
1. 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.
2. The STI for the year ended 31 December 2023 was paid in cash in March 2023.
3. 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.
4. Mr S. Gale ceased employment as Managing Director and Chief Executive Officer effective 19 April 2022.
5. Mr G. Montgomery was appointed as Chief Operating Officer effective 25 August 2022.
6. 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.
7. The table above is presented in United States dollar currency. The remuneration for 2023 was converted at the average exchange rate of US$1:A$1.4934 and an average
exchange rate of US$1:£0.7898. Mr T. Holohan is remunerated in £. Mr G. Montgomery is remunerated in USD and the other KMPs are remunerated in A$.
56
RESOLUTE MINING LIMITED 2023 ANNUAL REPORT
DIRECTORS’ REPORT
Remuneration Report
3d. Remuneration Policy and Outcomes (continued)
STI outcomes
Performance Measure
Company Operating
Cash Flow ($million)
Cash Operating Cost
Per Tonne Milled ($)
Production Target
(Gold Poured) (oz)
Sustainability
Performance Area
Weighting
30.0%
30.0%
30.0%
10.0%
Financial Report
Actual Performance
Outcome
Weighted Performance
Outcome
Target
146,694
64.06
350,000
133,753
69.55
330,994
YOY Improvement
YOY Improvement
Total Payout
20.1%
29.5%
17.8%
10.0%
77.4%
RESOLUTE MINING LIMITED 2023 ANNUAL REPORT
57
Financial Report
DIRECTORS’ 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$15,000. Members of Committees do not receive a
separate fee.
The amount of aggregate remuneration sought to be approved
by Shareholders and the manner in which it is apportioned
amongst Directors is reviewed annually.
The Board considers fees paid to NEDs of comparable
companies when undertaking the annual review process.
Each NED receives a fee for being a Director of the Company.
The fee size is commensurate with the workload and
responsibilities undertaken. NEDs do not participate in any
incentive programs.
Position
Current Annual Fee (A$)
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 20231
Short Term Benefits
Post Employment Benefits
Remuneration
$
Non-Monetary Benefits
$
Superannuation
$
120,530
77,005
60,685
66,961
36,270
77,005
438,456
—
—
—
—
—
—
—
—
—
6,276
—
—
—
6,276
M. Botha
M. Potts
S. Shugg
A. Reynolds
K. Marshall
S. Jackson
Total
1. The table above is presented in United States dollar currency. The total remuneration for 2023 was converted at the average exchange rate of US$1:A$1.4934.
Non-Executive Director remuneration for the year ended 31 December 20221
Short Term Benefits
Post Employment Benefits
Remuneration
$
Non-Monetary Benefits
$
Superannuation
$
121,506
74,254
61,228
67,503
77,629
402,120
—
—
—
—
—
—
—
—
6,864
—
—
6,864
M. Botha
M. Potts
S. Shugg
A. Reynolds
S. Jackson
Total
1. 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$1.332.
58
RESOLUTE MINING LIMITED 2023 ANNUAL REPORT
$180,000
$100,000
$15,0001
$15,0001
Total
$
120,530
77,005
66,961
66,961
36,270
77,005
444,732
Total
$
121,506
74,254
68,092
67,503
77,629
408,984
Financial Report
DIRECTORS’ REPORT
Remuneration 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:
Term of
Agreement
Notice
Period by
Executive
Notice
Period by
Company
Termination Benefit
Open
6 months
6 months Redundancy as per UK ERA1
Open
Open
Open
Open
6 months
6 months Redundancy as per NES3
6 months
6 months Redundancy as per UK ERA
6 months
6 months Redundancy as per NES
3 months
3 months Redundancy as per NES
Name
Title
Terry Holohan
Managing Director and Chief
Executive Officer
Chris Eger2
Chief Financial Officer
Geoff Montgomery
Doug Warden4
Chief Operating Officer
Chief Financial Officer
Richard Steenhof5
General Counsel and Company
Secretary
1. UK ERA is the UK Employment Rights Act.
2. Appointed effected 27 February 2023.
3. NES is the National Employment Standards.
4. Until 31 March 2023.
5. Until 19 January 2024.
No options were held by KMP during the year.
Details of Performance Rights holdings of KMP are as follows:
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
d
e
t
n
a
r
G
r
e
b
m
u
N
e
t
a
d
t
n
a
r
G
Granted during the year as compensation2
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
i
t
n
a
r
g
t
a
s
t
h
g
R
e
c
n
a
m
r
o
f
r
e
P
l
f
o
e
u
a
v
r
i
a
F
l
a
t
o
T
2
e
t
a
d
A$
A$
)
s
r
a
e
y
(
d
o
i
r
e
p
g
n
i
t
s
e
V
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. Holohan1
2,401,863 3,548,554
45,071 —
1,405,227 3
46,022
48,214
nil
443,719 — 5,506,698
Other key management personnel
G. Montgomery 697,950
1,800,385 45,062 —
712,953 3
46,022
48,214
C. Eger
— 1,513,325
44,927 —
599,277 3
46,022 47,484
D. Warden
1,204,960
— 45,062 —
— 3
46,022
48,214
R. Steenhof
431,738
1,105,952 45,062 —
437,957 3
46,022
48,214
nil
nil
nil
nil
211,276 — 2,287,059
—
1,513,325
1,204,960 —
1,537,690 —
—
—
1. Mr T. Holohan had 1,000,000 shares approved at the Annual General Meeting on 25 May 2023 which have not been granted as the performance measures have not
been finalised.
2. 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.
RESOLUTE MINING LIMITED 2023 ANNUAL REPORT
59
Financial Report
DIRECTORS’ 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
M. Potts
S. Shugg
K. Marshall
A. Reynolds
S. Jackson
236,405
—
234,839
27,273
—
50,000
—
Other key management personnel
G. Montgomery
C. Eger
D. Warden
R. Steenhof
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
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.
This is the end of the remuneration report.
7. OTHER INFORMATION
Performance Rights
Outstanding Performance Rights at the date of this report are as follows:
Grant date
26/10/2018
21/5/2019
22/6/2022
1/1/2023
Vesting date
Exercise price
Number on issue
30/6/2021
31/12/2021
31/12/2024
31/12/2025
—
—
—
—
13,550
73,377
5,266,104
8,883,437
14,236,468
60
RESOLUTE MINING LIMITED 2023 ANNUAL REPORT
Financial 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:
M. Botha
T. Holohan
M. Potts
S. Shugg
A. Reynolds
K. Marshall1
S. Jackson
Number of meetings held
Board
Audit and Risk
Remuneration
Nomination
Sustainability
8
8
8
8
8
4
8
8
4
n/a
4
4
4
2
4
4
3
n/a
3
2
3
2
3
3
2
n/a
2
2
2
1
2
2
n/a
2
n/a
3
3
2
n/a
3
1. Mr K. Marshall was appointed as Non Executive Director, effective 17 June 2023.
The details of the functions of the other committees of the Board are presented in the Corporate Governance Statement.
The Directors Report has been prepared in US dollars and all values are rounded to the nearest thousand dollars ($'000) unless
otherwise stated in line with Australian Securities and Investments Commission (ASIC) Corporations (Rounding in Financial/
Directors’ Reports) Instrument 2016/191
Non-Audit Services
Non-audit services have been provided by the entity’s auditor, Ernst & Young for the year ended 31 December 2023 for $nil
(year ended 31 December 2022: $17,045).
Signed in accordance with a resolution of the Directors.
Martin Botha
Chairman
Perth, Western Australia
27 March 2024
RESOLUTE MINING LIMITED 2023 ANNUAL REPORT
61
Financial Report
62
RESOLUTE MINING LIMITED 2023 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
A
A.1
A.2
A.3
A.4
B
B.1
B.2
B.3
C
C.1
C.2
C.3
C.4
C.5
C.6
D
D.1
D.2
D.3
D.4
D.5
D.6
E
E.1
E.2
E.3
E.4
E.5
E.6
E.7
E.8
E.9
Earnings for the year
Segment revenues and expenses
Dividends paid or proposed
Loss per share
Taxes
Production and growth assets
Mine properties and property, plant
and equipment
Exploration and evaluation assets
Segment expenditure, assets and liabilities
Cash, debt and capital
Cash
Financial liabilities
Interest bearing liabilities
Financing facilities
Contributed equity
Other reserves
Other assets and liabilities
Receivables
Inventories
Payables
Provisions
Leases
Financial instruments
Other items
Ravenswood receivables
Commitments
Auditor remuneration
Subsidiaries and non-controlling interests
Subsequent events
Related party disclosures
Parent entity information
Employee benefits and share-based payments
Other accounting policies
Directors’ Declaration
Independent Auditor’s Report
Shareholder Information
64
66
68
69
70
71
71
74
74
75
78
78
80
80
82
82
83
84
85
85
85
87
87
88
88
89
91
93
94
94
95
96
96
97
97
98
98
102
103
104
110
Financial Report
RESOLUTE MINING LIMITED 2023 ANNUAL REPORT
63
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 2023 was authorized for
issue on 27 March 2024 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 Financial Report
complies with Australian Accounting Standards as issued by the
Australian Accounting Standards Board and International
Financial Reporting Standards (IFRS) as issued by the
International Accounting Standards Board. The accounting
policies are consistent with those disclosed in the 31 December
2022 Financial Report, except for the impact of all new or
amended Standards and Interpretations as detailed in Note E.9.
The Financial Report includes financial information for Resolute
Mining Limited (“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.
The Company has reclassified certain expense items to costs
of production to better reflect the actual costs incurred at
our operations.
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.
Rounding of Amounts
The Financial Report has been prepared in US dollars and all
values are rounded to the nearest thousand dollars ($'000)
unless otherwise stated in line with Australian Securities and
Investments Commission (ASIC) Corporations (Rounding in
Financial/ Directors’ Reports) Instrument 2016/191.
Financial Report
64
RESOLUTE MINING LIMITED 2023 ANNUAL REPORT
Currency
Items in the financial statements of each of the Group’s entities
are measured in their respective currencies. Resolute Mining
Limited’s functional currency is Australian dollars (A$) and
presentation currency is US dollars ($).
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 profit or 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 Report
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 US dollars and Australian dollars and a large
portion of its costs at the Syama Gold Mine, Mako Gold Mine and
the Bibiani Gold Mine are denominated in Euro, US dollars 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.
RESOLUTE MINING LIMITED 2023 ANNUAL REPORT
65
Financial Report
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
for the year ended 31 December 2023
$'000
Note
2023
2022
Revenue from contracts with customers for gold and silver sales
Costs of production
Gross profit
Depreciation and amortisation
Royalties
Gross profit from operations
Interest income
Other income
Exploration expense
Administration and other corporate expenses
Share based payments expense
Fair value movements and treasury transactions
Inventories net realisable value movements and obsolete consumables
Finance costs
Share of associates’ losses
Indirect tax expense
Profit/(loss) before tax from operations
Tax expense
Profit/(loss) for the year from operations
Profit/(loss) attributed 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
631,073
651,129
(400,378)
(433,924)
230,695
217,205
(81,044)
(85,894)
(36,313)
(39,574)
113,338
91,737
2,406
23,527
5,513
4,548
(14,720)
(14,615)
(18,450)
(14,393)
(605)
(457)
22,442
(14,822)
(12,665)
(36,078)
(13,583)
(20,786)
—
(1,305)
(5,367)
(13,449)
96,324
(14,105)
A.1
(4,791)
(20,560)
91,533
(34,665)
65,577
25,956
91,533
(34,083)
(582)
(34,665)
The above consolidated statement of comprehensive income should be read in conjunction with the accompanying notes.
66
RESOLUTE MINING LIMITED 2023 ANNUAL REPORT
Financial Report
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
for the year ended 31 December 2023 (CONTINUED)
$'000
Profit/(loss) for the year (brought forward)
Other comprehensive income/(loss)
Items that may be reclassified subsequently to profit or loss
Exchange differences on translation of foreign operations:
- Members of the parent
- 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
Note
2023
2022
91,533
(34,665)
(19,764)
(18,167)
(1,989)
4,507
(865)
(717)
(22,618)
(14,377)
Total comprehensive income/(loss) for the year
68,915
(49,042)
Total comprehensive income/(loss)attributable to:
Members of the parent
Non-controlling interest
Earnings/(loss) per share for net loss attributable for continuing operations to the
ordinary equity holders of the parent:
Basic earnings/(loss) per share
Diluted earnings/(loss) per share
44,948
23,967
68,915
(52,967)
3,925
(49,042)
A.3
A.3
cents
3.08
3.08
cents
(2.85)
(2.85)
The above consolidated statement of comprehensive income should be read in conjunction with the accompanying notes.
RESOLUTE MINING LIMITED 2023 ANNUAL REPORT
67
Financial Report
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
As at 31 December 2023
$'000
Current assets
Cash
Other financial assets – restricted cash
Receivables
Inventories
Prepayments and other assets
Income tax asset
Total current assets
Non-current assets
Receivables
Inventories
Evaluation assets
Development assets
Property, plant and equipment
Right of use assets
Deferred tax asset
Income tax asset
Total non current assets
Total assets
Current liabilities
Payables
Financial liabilities
Provisions
Lease liabilities
Current tax liabilities
Total current liabilities
Non current liabilities
Provisions
Financial liabilities
Lease liabilities
Total non current liabilities
Total liabilities
Net assets
Note
2023
2022
C.1
D.1
D.2
D.1
D.2
B.2
B.1
B.1
D.5
A.4
A.4
D.3
C.2
D.4
D.5
A.4
D.4
C.2
D.5
59,769
1,412
60,102
80,873
1,406
48,793
135,417
146,430
11,021
1,810
11,141
—
269,532
288,643
54,456
42,489
6,354
53,651
42,434
3,211
298,927
222,395
160,894
234,461
10,106
3,005
13,453
—
7,317
10,545
583,547
580,150
853,078
868,793
67,302
74,066
66,188
3,070
4,791
63,700
97,180
100,377
3,373
19,107
215,417
283,737
85,863
—
9,625
71,544
29,482
12,536
95,488
113,562
310,905
397,299
542,173
471,494
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
C.5
882,731
882,731
(40,821)
(21,956)
(251,764)
(317,341)
590,146
543,434
E.4
(47,973)
(71,940)
542,173
471,494
The above consolidated statement of financial position should be read in conjunction with the accompanying notes.
68
RESOLUTE MINING LIMITED 2023 ANNUAL REPORT
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
as at 31 December 2023
Financial Report
$'000
At 1 January 2023
Profit 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)
Dividends paid
Share based payments expense
At 31 December 2023
At 1 January 2022
Loss for the year
Other comprehensive (loss)/income,
net of tax
Total comprehensive (loss)/income
for the year, net of tax
y
t
i
u
q
e
d
e
t
u
b
i
r
t
n
o
C
i
/
n
a
g
d
e
s
i
l
a
e
r
n
u
t
e
N
e
v
r
e
s
e
r
)
s
s
o
l
(
y
t
i
u
q
e
s
n
o
i
t
p
o
e
r
a
h
S
l
/
s
e
t
o
n
e
b
i
t
r
e
v
n
o
C
e
v
r
e
s
e
r
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
i
/
s
g
n
n
r
a
e
d
e
n
a
t
e
R
i
l
d
e
t
a
u
m
u
c
c
a
(
)
s
e
s
s
o
l
g
n
i
l
l
o
r
t
n
o
c
-
n
o
N
t
s
e
r
e
t
n
i
l
a
t
o
T
882,731
(9,348)
4,876
(724) 20,447
(37,207)
(317,341) (71,940) 471,494
—
—
—
—
—
—
65,577
25,956
91,533
—
(397)
(555)
88
—
(19,764)
—
(1,989) (22,618)
—
(397)
(555)
88
—
(19,764)
65,577
23,967
68,915
—
—
—
—
—
—
—
—
—
—
—
—
—
—
1,763
—
—
—
—
—
—
—
—
—
—
—
1,763
882,731
(9,745)
4,321
(636) 22,210
(56,971) (251,764) (47,973) 542,173
777,021
(8,631)
4,876
(724) 19,813
(19,040) (283,258) (71,467) 418,590
—
—
—
(717)
—
(717)
—
—
—
—
—
—
—
—
—
—
—
—
(34,083)
(582) (34,665)
—
(18,167)
—
4,507
(14,377)
—
(18,167)
(34,083) 3,925
(49,042)
105,710
—
634
—
—
—
(4,398)
(4,398)
—
—
634
Shares issued (net of cost)
105,710
Dividends paid
Share based payments expense
—
—
—
—
At 31 December 2022
882,731
(9,348)
4,876
(724) 20,447
(37,207)
(317,341) (71,940) 471,494
The above consolidated statement of changes in equity should be read in conjunction with the accompanying notes.
RESOLUTE MINING LIMITED 2023 ANNUAL REPORT
69
Financial Report
CONSOLIDATED CASH FLOW STATEMENT
for the year ended 31 December 2023
$'000
Note
2023
2022
Cash flows from operating activities
Receipts from customers
Payments to suppliers, employees and others
Exploration expenditure
Interest paid
Interest received
Indirect tax receipts/(payments)
Income tax paid
Net cash flows from operating activities
Cash flows used in investing activities
Payments for property, plant & equipment
Payments for development activities
Payments for evaluation activities
Proceeds from sale of asset
Proceeds relating to asset held for sale
Proceeds from investment in associate
Other investing activities
Net cash flows from/(used in) investing activities
Cash flows from financing activities
Repayment of borrowings
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 (decrease)/increase 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
632,444
650,591
(499,808)
(524,706)
(4,650)
(10,745)
(12,279)
(16,619)
519
(374)
214
164
(9,285)
(7,994)
106,567
90,905
(27,264)
(35,811)
(40,299)
(27,602)
(4,234)
(4,372)
3,621
—
—
19,148
60,000
4,534
(725)
(725)
(68,901)
15,172
(55,000)
(195,000)
—
—
—
110,289
(4,579)
(5,089)
(2,354)
(3,457)
(57,354)
(97,836)
(19,688)
35,459
(2,198)
8,240
25,237
1,982
13,573
35,459
C.1
C.1
59,769
80,873
(46,196)
(45,414)
13,573
35,459
The above consolidated cash flow statement should be read in conjunction with the accompanying notes.
70
RESOLUTE MINING LIMITED 2023 ANNUAL REPORT
Financial 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 (the Chief Operating Decision Maker)
in 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.
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.
Key estimates and judgements
Revenue from contracts with customers – Judgement is required
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.
RESOLUTE MINING LIMITED 2023 ANNUAL REPORT
71
Financial Report
Notes to the Financial Statements
for the year ended 31 December 2023
A.1 Segment revenues and expenses (continued)
31 December 2023
$'000
Syama
(Mali)
Mako
(Senegal)
Corporate/
Other (a)
Total
Gold and silver sales at spot to external customers
401,568
229,505
—
631,073
Costs of production
Segment gross profit
Depreciation and amortisation
Royalties
(262,472)
(136,235)
(1,671)
(400,378)
139,096
93,270
(1,671)
230,695
(34,121)
(44,491)
(2,432)
(81,044)
(24,066)
(11,475)
(772)
(36,313)
Segment gross profit from operations
80,909
37,304
(4,875)
113,338
Interest income
Other income (b)
Exploration expense
Administration and corporate expenses (c)
Share based payment expenses
22
(140)
—
2,384
(24)
23,691
2,406
23,527
(7,832)
(4,455)
(2,433)
(14,720)
—
—
—
—
(18,450)
(18,450)
(605)
(605)
Fair value movements and treasury transactions
28,749
(4,339)
(1,968)
22,442
Inventories net realisable value movements and obsolete consumables
(9,096)
(3,569)
—
(12,665)
Finance costs
Indirect tax expense
(5,062)
(1,793)
(6,727)
(13,582)
(5,363)
(4)
—
(5,367)
Segment profit/(loss) before tax from operations
82,187
23,120
(8,983)
96,324
Income tax expense
(20,250)
15,459
—
(4,791)
Profit/(loss) for the 12 months to 31 December 2023
61,937
38,579
(8,983)
91,533
(a) 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.
(b) Other income includes the gain realised on remeasurement of the contingent consideration receivables from the sale of the Ravenswood mine.
(c) Administration and corporate expenses are no longer allocated to operating segments as stated in prior years.
72
RESOLUTE MINING LIMITED 2023 ANNUAL REPORT
Financial Report
Notes to the Financial Statements
for the year ended 31 December 2023
A.1 Segment revenues and expenses (continued)
31 December 2022
$'000
Syama
(Mali)
Mako
(Senegal)
Corporate/
Other (b)
Revenue from contracts with customers for gold and silver sales
414,369
236,760
Costs of production
Segment gross profit
Depreciation and amortisation
Royalties
Segment gross profit from operations
Interest income
Other income
Exploration expense
Administration and corporate expenses
Share based payment expenses
Fair value movements and treasury transactions
Total
651,129
(433,924)
217,205
—
—
—
(285,907)
(148,017)
128,462
88,743
(41,208)
(42,673)
(2,013)
(85,894)
(27,736)
(11,838)
—
(39,574)
59,518
34,232
(2,013)
91,737
24
14
7
—
5,482
4,535
5,513
4,549
(9,578)
(1,160)
(4,018)
(4,777)
(1,019)
(14,615)
(8,456)
(14,393)
—
879
—
(457)
(457)
(163)
(15,538)
(14,822)
Inventories net realisable value movements and obsolete consumables
(29,073)
(7,004)
—
(36,077)
Finance costs
Share of associates' losses
Indirect tax expense
Segment profit/(loss) before tax from operations
Income tax expense
Profit/(Loss) for the 12 months to 31 December 2022
(5,076)
(839)
(14,871)
(20,786)
—
(13,387)
—
(62)
(1,305)
(1,305)
—
(13,449)
2,161
17,376
(33,642)
(14,105)
(4,178)
(2,017)
(13,411)
(2,971)
(20,560)
3,965
(36,613)
(34,665)
RESOLUTE MINING LIMITED 2023 ANNUAL REPORT
73
Financial Report
Notes to the Financial Statements
for the year ended 31 December 2023
A.1 Segment revenues and expenses (continued)
(a) Revenue from external sales for each reportable segment is derived from third parties. Bullion sales are conducted with third
parties at market spot prices or per the terms of forward sales contracts. Customers representing more than 10% of sales in 2023
were ING Bank 49.0% and Perth Mint 37.1% (2022 being ING 17.6%, Perth Mint 27.1%, BNP Paribas 14.7% and Citibank 31.1%).
(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 2023.
A.3 Earnings/(loss) per share
31 December 2023
31 December 2022
Basic earnings/(loss) per share
Profit/(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
65,578
(34,083)
2,129,006,569
1,196,856,518
Basic earnings/(loss) per share from operations (cents per share)
Diluted earnings/(loss) per share from operations (cents per share)1
cents
3.08
3.08
cents
(2.85)
(2.85)
1. At 31 December 2023, a total of 14,236,468 performance rights (10,916,506 at 31 December 2022) could potentially dilute basic earnings per share in the future, but were not
included in diluted earnings/(loss) per share as they are contingently issuable shares.
Measurement
Basic earnings per share (“EPS”) is calculated as net profit/(loss) 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.8 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
RESOLUTE MINING LIMITED 2023 ANNUAL REPORT
NOTES TO THE FINANCIAL STATEMENTS
for the year ended 31 December 2023
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
Profit/(loss) before income tax from operations
Total accounting gain/(loss)
Prima facie income tax expense/(benefit) at 30% (31 December 2022: 30%)
Add/(deduct):
- net movement in temporary differences and tax losses not recognised
- effect of different rates of tax on overseas income
- effect of income not subject to tax
- effect of share based payments expense not deductible
- prior year tax losses recognised
- prior year under / (over) provision
- other permanent differences
Income tax expense attributable to net profit
c) Tax losses (tax effected)
Revenue losses
- Australia
- Mali
- Senegal
- UK
- 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)
Financial Report
31 December 2023
31 December 2022
7,796
(3,005)
4,791
96,324
96,324
29,170
23,091
(7,375)
(29,220)
182
—
(14,422)
3,365
4,791
—
4,818
17,999
—
2,153
—
24,970
37,402
62,372
—
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
—
62,372
108,393
RESOLUTE MINING LIMITED 2023 ANNUAL REPORT
75
Financial Report
NOTES TO THE FINANCIAL STATEMENTS
for the year ended 31 December 2023
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
The amount of franking credits available for subsequent financial years is as
follows. The amount has been determined using a tax rate of 30%.
31 December 2023
31 December 2022
—
—
—
—
30,734
—
81,233
—
—
6,597
—
—
(109,696)
(5,863)
3,005
—
5,568
—
361
(66)
5,863
(5,863)
—
—
—
—
—
—
—
—
—
—
—
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
6,102
74
76
RESOLUTE MINING LIMITED 2023 ANNUAL REPORT
NOTES TO THE FINANCIAL STATEMENTS
for the year ended 31 December 2023
Financial Report
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 deferred income tax asset recognised at
31 December 2023 is in relation to the MAKO mine.
The future benefit will only be obtained if:
(i)
(ii)
future assessable income is derived of a nature
and an amount sufficient to enable the benefit to
be realised
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.
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
applicable 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 Mining Limited. The entities have also entered
into a tax funding agreement under which the wholly-owned
entities fully compensate Resolute Mining Limited for any current
tax payable assumed and are compensated by Resolute Mining
Limited for any current tax receivable.
RESOLUTE MINING LIMITED 2023 ANNUAL REPORT
77
Financial Report
NOTES TO THE FINANCIAL STATEMENTS
for the year ended 31 December 2023
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
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.
The cost of an item of property, plant and equipment comprises:
▪
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
▪ 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
78
RESOLUTE MINING LIMITED 2023 ANNUAL REPORT
Key estimates and judgements
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;
▪ estimates of the quantities of ore reserves and mineral
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.
Financial Report
NOTES TO THE FINANCIAL STATEMENTS
for the year ended 31 December 2023
B.1 Mine properties and property, plant and equipment (continued)
Plant and Equipment
Mine Properties
n
o
i
t
c
u
r
t
s
n
o
C
r
e
d
n
U
s
t
e
s
s
A
s
e
l
c
i
h
e
V
r
o
t
o
M
i
t
n
e
m
p
u
q
E
e
c
i
f
f
O
t
e
s
s
A
y
t
i
v
i
t
c
A
g
n
p
i
r
t
S
i
s
e
i
t
r
e
p
o
r
P
e
n
M
i
l
a
t
o
T
i
t
n
e
m
p
u
q
E
d
n
a
t
n
a
P
l
31 December 2023
$'000
Cost
s
g
n
d
i
l
i
u
B
Balance as at 1 January 2023
26,311
513,899
13,764
18,560
—
746,061
51,876
1,370,471
Additions/expenditures
Transfers/reallocations
Change in estimate of environmental
rehabilitation provision
Disposals
Foreign currency translation
—
—
—
70
26,892
13,654
36,678
77,294
(8,711)
(50,221)
492
2,013
36,894
(311,107) 330,640
—
—
—
73
—
—
987
—
(21)
18
—
—
30
—
—
788
10,619
—
—
—
10,619
(21)
2,451
2,904
7,254
Balance as at 31 December 2023
17,673
464,665
14,253
20,673
64,574
461,679
422,099
1,465,617
Accumulated Depreciation
Balance as at 1 January 2023
Depreciation/amortisation
Transfers/reallocations
Disposals
(16,574) (293,699) (12,117) (15,686)
—
(552,290) (23,252)
(913,618)
(1,063)
(17,612)
(1,105) (2,653)
—
(38,280) (31,488)
(92,199)
6,131
(69,599)
—
—
501
21
242
2,267
181,254
(120,796)
—
—
—
—
—
21
Balance as at 31 December 2023
(11,506) (380,910) (12,700) (18,097) 2,267
(409,316) (175,535) (1,005,796)
Carrying Amounts
As at 1 January 2023
9,737
220,203
1,647
2,874
—
193,771
28,624
456,856
Balance as at 31 December 2023
6,167
83,755
1,553
2,578
66,841
52,363
246,564
459,821
31 December 2022
$'000
s
g
n
d
i
l
i
u
B
i
t
n
e
m
p
u
q
E
d
n
a
t
n
a
P
l
s
e
l
c
i
h
e
V
r
o
t
o
M
i
t
n
e
m
p
u
q
E
e
c
i
f
f
O
s
e
i
t
r
e
p
o
r
P
e
n
M
i
t
e
s
s
A
y
t
i
v
i
t
c
A
g
n
p
i
r
t
S
i
l
a
t
o
T
Opening written down value
10,636
212,425
2,320
3,783
246,714
17,777
493,655
Additions
Transfers (to)/from areas in exploration and
development
Reallocations
Disposals
Depreciation expense
Amortisation expense
Adjustments to rehabilitation and restoration
obligations
671
33,888
428
(12)
463
(412)
—
—
(351)
(223)
—
—
912
78
351
—
(1,009)
(16,645)
(556)
(1,989)
6,024
25,296
67,219
—
—
—
—
—
—
—
—
117
—
(223)
(20,199)
—
—
—
—
—
—
—
(49,472)
(16,233)
(65,705)
—
(197)
—
(197)
Foreign currency translation
(549)
(9,345)
(133)
(261)
(9,298)
1,784
(17,802)
At 31 December net of accumulated
depreciation
Cost
9,737
220,212
26,311
513,899
1,647
13,764
2,874
193,771
28,624
456,865
18,560
746,061
51,876
1,370,471
Accumulated depreciation and impairment
(16,574) (293,696)
(12,117)
(15,686) (552,290)
(23,252)
(913,615)
Net carrying amount
9,737
220,203
1,647
2,874
193,771
28,624
456,856
RESOLUTE MINING LIMITED 2023 ANNUAL REPORT
79
Financial Report
NOTES TO THE FINANCIAL STATEMENTS
for the year ended 31 December 2023
B.2 Exploration and evaluation assets
Exploration and evaluation (at cost)
Balance at the beginning of the year
Evaluation expenditure during the year
Transfers to areas in exploration and development
Foreign currency translation
Balance at the end of the year
31 December 2023
$'000
31 December 2022
$'000
3,211
3,111
—
32
6,354
2,909
1,524
(117)
(1,105)
3,211
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 Company also capitalises any costs incurred from any joint venture
agreements it is a part of. 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 2024 for the consolidated entity is approximately $17.5 million (actual
expenditure for the year ended 31 December 2023: $18.2 million). This includes the minimum amounts required to retain tenure.
There are no material exploration commitments further out than one year.
B.3 Segment expenditure, assets and liabilities
31 December 2023
Capital expenditure
Segment assets
Segment liabilities
31 December 2022
Capital expenditure
Segment assets
Segment liabilities
Mako
(Senegal)
Syama
(Mali) Corp/ Other
$'000
$'000
$'000
Total
$'000
30,357
39,880
163
70,400
193,412
613,521
46,145
853,078
74,049
197,114
39,742
310,905
Mako
(Senegal)
Syama
(Mali) Corp/ Other
$'000
$'000
$'000
Total
$'000
21,966
44,662
2,116
68,744
260,949
551,377
56,467
868,793
142,045
211,916
43,338
397,299
80
RESOLUTE MINING LIMITED 2023 ANNUAL REPORT
Financial Report
NOTES TO THE FINANCIAL STATEMENTS
for the year ended 31 December 2023
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
Cash and cash equivalents
For the purpose of the cash flow statement, cash and cash equivalents comprise the
following at the end of each year:
Cash at bank and on hand
Bank overdraft – ref C.3
Total
31 December 2023
$'000
31 December 2022
$'000
59,769
59,769
59,769
(46,196)
13,573
80,873
80,873
80,873
(45,414)
35,459
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 and short-term deposits
Counterparties with external credit ratings (S&P and Fitch)
AA-
A
A+
BB
B
Counterparties without external credit ratings
Total cash at bank and short term deposits
31 December 2023
$'000
31 December 2022
$'000
253
943
48,396
67
10,060
50
59,769
215
520
68,997
67
11,074
—
80,873
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 $59.8 million of cash and cash equivalents at 31 December 2023 (31 December 2022: $72.7 million) in currencies
other than that of the functional currency of the company which holds the item. These exposures are predominantly US dollars
(December 2023: $47.2 million; December 2022: $66.7 million equivalent) and West African CFA franc (December 2023: $7.0 million;
31 December 2022: $4.9 million).
RESOLUTE MINING LIMITED 2023 ANNUAL REPORT
81
Financial Report
NOTES TO THE FINANCIAL STATEMENTS
for the year ended 31 December 2023
C.2 Financial liabilities
Current
Interest bearing liabilities
Financial derivative liabilities
Total financial liabilities
31 December 2023
$'000
31 December 2022
$'000
71,594
2,472
74,066
95,634
1,546
97,180
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 2023 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 $2.5 million (31 December 2022: $1.5 million). 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 trade and other 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.4, 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.
82
RESOLUTE MINING LIMITED 2023 ANNUAL REPORT
NOTES TO THE FINANCIAL STATEMENTS
for the year ended 31 December 2023
C.3 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)
Financial Report
31 December 2023
$'000
31 December 2022
$'000
46,196
180
25,218
71,594
—
71,594
45,414
—
50,220
95,634
29
125,116
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 $853.1million (as at December 2022: $868.8 million). $160.9 million (as at December 2022: $234.5 million) of these assets relate
to property, plant and equipment.
Interest bearing liabilities
The Group’s interest bearing liabilities have a fair value equal to the carrying value.
The Group held $71.6 million of interest bearing liabilities at 31 December 2023 (As at 31 December 2022: $125.1 million) in currencies
other than Australian dollars or a different currency to that of the functional currency of the company which holds the item.
The average interest rates charged on interest bearing liabilities for the year ended 31 December 2023 was 10.24% (2022: 6.79%).
The Group’s main LIBOR exposure at 31 December 2023 was in relation to the Syndicate Borrowing Facility which was indexed to the
3-month US dollar LIBOR. The alternative reference rate for US dollar LIBOR is the Secured Overnight Financing Rate (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:
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
31 December 2023
$'000
31 December 2022
$'000
71,594
—
—
71,594
—
71,594
76,712
26,122
25,340
128,174
(3,057)
125,117
RESOLUTE MINING LIMITED 2023 ANNUAL REPORT
83
Financial Report
NOTES TO THE FINANCIAL STATEMENTS
for the year ended 31 December 2023
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.
C.4 Financing facilities
C.4.1 Bank overdraft
The current overdraft facilities with the Bank Du Mali SA are in
place and are subject to an annual revision in May 2024. The
facilities total CFA 25.0 billion ($42.1 million) ($40.8 million as at
31 December 2022) and as at 31 December 2023, $12.2 million
($4.7 million at 31 December 2022) of the facility was undrawn.
The current overdraft facility with Orabank is subject to an
annual revision in March 2024. The facility totals CFA 7.0 billion
($11.8 million) and as at 31 December 2023, $11.8 million
($1.9 million at 31 December 2022) of the facility was undrawn.
C.4.2 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 C is scheduled to
mature on 25 March 2024.
As at 31 December 2023, $25.0 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 Mining Limited over all
of its shares in Carpentaria Gold Pty Ltd
(iii) Specific security deed granted by Resolute Mining Limited
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
(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 Mining
Limited 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 Mining Limited
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.
84
RESOLUTE MINING LIMITED 2023 ANNUAL REPORT
NOTES TO THE FINANCIAL STATEMENTS
for the year ended 31 December 2023
C.5 Contributed equity
Ordinary share capital:
2,129,050,013 ordinary fully paid shares (2022 2,129,006,569)
Movements in contributed equity, net of issuing costs:
Balance at the beginning of the year
Placement of shares
Share issue costs
Balance at the end of the year
Financial Report
31 December 2023
$'000
31 December 2022
$'000
882,731
882,731
882,731
—
—
882,731
777,021
110,289
(4,579)
882,731
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.6 Other reserves
Reserve
Nature and purpose
Net unrealised gain/(loss) reserve
This reserve records fair value changes on financial assets at fair value through
other comprehensive income.
Convertible notes/Share options
equity reserve
This reserve records the value of the equity portion (conversion rights) of the
convertible notes and records the fair value of share options issued.
Employee benefits equity reserve
Foreign currency translation reserve
Non-controlling interests’ reserve
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.
Represents exchange differences arising on translation of foreign
controlled entities.
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.
RESOLUTE MINING LIMITED 2023 ANNUAL REPORT
85
Financial Report
NOTES TO THE FINANCIAL STATEMENTS
for the year ended 31 December 2023
C.6 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 constantly analyses 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 Life of Mine 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 2023 is 2% (31 December 2022: 8%). 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
Interest rate1
Foreign exchange risk2
-1.00%
+1.00%
-10%
+10%
Profit
$’000
Equity
$’000
Profit
$’000
Equity
$’000
Profit
$’000
Equity
$‘000
Profit
$’000
Equity
$‘000
31 December 2023
Cash
59,769
Interest bearing liabilities
71,594
Total (decrease)/increase
31 December 2022
117
147
117
117
147
117
(117)
(147)
(117)
(117)
(6,221)
(6,221)
5,090
5,090
(147)
(2)
(2)
2
2
(117)
(6,221)
(6,221)
5,090
5,090
Cash
80,873
(484)
(484)
484
484
5,213
5,213
(4,265)
(4,265)
Interest bearing liabilities
125,116
Total (decrease)/increase
876
392
876
392
(876)
(876)
(6,222)
(6,222)
5,091
(392)
(392)
(1,009)
(1,009)
826
5,091
826
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.
86
RESOLUTE MINING LIMITED 2023 ANNUAL REPORT
NOTES TO THE FINANCIAL STATEMENTS
for the year ended 31 December 2023
D: Other assets and liabilities
IN THIS SECTION
Other assets and liabilities position at the end of the reporting year.
D.1 Receivables
Current
Gold price contingent receivable
Trade and other receivables
Taxation receivables¹
Total
Non-current
Gold price contingent receivable
Other receivables
Promissory notes receivables
Taxation receivables¹
Total
Financial Report
31 December 2023
$'000
31 December 2022
$'000
34,060
8,743
17,299
60,102
—
29
42,378
12,049
54,456
—
37
48,756
48,793
13,636
—
40,015
—
53,651
1. The taxation receivables primarily relate to indirect taxes.
Trade and other receivables for $8.7 million relates to gold sales for which funds have not been received at 31 December 2023.
The tax receivable balance includes VAT receivables of $19.4 million (31 December 2022 $12.1 million) largely attributable to the Syama
operation and a VAT receivable of $9.9 million (31 December 2022 $34.9 million) due to the Mako’s operations post exoneration. Resolute
continues to work with its advisors and the Malian and Senegalese Authorities on the timely release of VAT refunds. Refer to Note D.4.
Gold price contingent receivable of $34.1 million (31 December 2022 $13.6 million) relates to the notes receivable for the sale of the
Ravenswood mine have been moved to current assets in the 2023 period as all performance hurdles associated with the sale are
expected to be met, and payment is expected in the next twelve months.
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
F1
AA+
Counterparties without external credit ratings(*)
Group 1
Group 2
Total receivables
31 December 2023
$'000
31 December 2022
$'000
8,743
352
51,003
3
60,102
—
52
34,912
13,829
48,793
* 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.
Taxation 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.
RESOLUTE MINING LIMITED 2023 ANNUAL REPORT
87
Financial Report
NOTES TO THE FINANCIAL STATEMENTS
for the year ended 31 December 2023
D.2 Inventories
Doré bars
Gold in circuit1
Ore stockpiles2
Consumables, spare parts and supplies3
Total inventories
Less: Non-current metal inventories
Current portion of inventories
31 December 2023
$'000
31 December 2022
$'000
13,340
50,837
47,523
66,206
177,906
(42,489)
135,417
10,276
41,755
60,747
76,086
188,864
(42,434)
146,430
1.
2.
3.
Includes a charge of $1.6 million to adjust the costs of gold in circuit to net realisable value ("NRV").
Includes a charge of $85.0 million to adjusts the costs of ore stockpiles to NRV.
Includes a charge of $13.0 million to adjust the costs of consumables, spare parts and supplies to NRV.
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. Cost is determined on a weighted average basis.
D.3 Payables
Trade creditors
Accruals
Total payables
31 December 2023
$'000
31 December 2022
$'000
35,277
32,025
67,302
28,937
34,763
63,700
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.
88
RESOLUTE MINING LIMITED 2023 ANNUAL REPORT
NOTES TO THE FINANCIAL STATEMENTS
for the year ended 31 December 2023
D.4 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)
Financial Report
31 December 2023
$'000
31 December 2022
$'000
626
5,744
136
57,021
2,661
66,188
85,570
293
85,863
1,220
4,336
136
92,936
1,749
100,377
70,874
670
71,544
The Group has reversed $66.7 million (comprised of $34.9 million VAT, $17.3 million indirect taxes, and $14.5 million income tax) of the
tax claim by the Senegalese tax authority as the exoneration dispute was settled for an amount of $5 million.
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.
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
31 December 2023
$'000
31 December 2022
$'000
72,094
2,930
11,647
(1,139)
664
86,196
626
85,570
86,196
73,967
1,047
(996)
(630)
(1,294)
72,094
1,220
70,874
72,094
RESOLUTE MINING LIMITED 2023 ANNUAL REPORT
89
Financial Report
NOTES TO THE FINANCIAL STATEMENTS
for the year ended 31 December 2023
D.4 Provisions (continued)
Balance at the beginning of the year
Reversal of prior year provisions
Tax payments
Foreign exchange translation
Current year provisions
Closing Balance
31 December 2023
$'000
31 December 2022
$'000
92,936
(53,121)
(4,455)
440
21,221
57,021
50,381
—
(1,610)
1,965
42,200
92,936
Key estimates and judgements
Taxation
The Group operates mainly in Australia, Senegal, and Mali, and has entities in several other countries. Accordingly, it is subject to,
and pays taxes under the applicable tax regimes in those countries in which it operates. Significant judgement is required in the
interpretation or application of certain tax rules when determining the provision for taxes due to the complexity of the legislation
and differing government practices.
The Group has recognised tax provisions with respect to current assessments received from the tax authorities in the jurisdictions
in which it operates. The provisions for these assessments are based on management’s and its advisor's best estimate of the outcome
of those assessments, based on the validity of the issues in the assessment, management's support for their position, and the
expectation with respect to any negotiations to settle the assessment.
Management re-evaluates the outstanding tax assessments regularly to update their estimates related to the outcome for those
assessments considering the criteria above. Management considers any other claims to be without merit or foundation and will
strongly defend its position in relation to these matters and follow the appropriate process to support its position. Accordingly, no
provision or further disclosure has been made as the likelihood of a material outflow of economic benefits in respect of those claims
whose outcome is considered to be remote. In forming this assessment, management has considered the professional advice
received, the mining conventions and tax laws in place in the various jurisdictions, and the facts and circumstances of each
individual claim.
As at 31 December 2023, the Group had total tax exposures of up to $250.0 million reflecting new assessments received for which
a provision of $112.1 million has been recognised in current liabilities prior to the application of tax offsets of $55.1 million. (As at
31 December 2022, the Group had total tax exposures of up to $200.0 million for which a net provision of $146.4 million prior to the
application of tax offsets of $53.5 million was recognised as tax payable included in current liabilities).
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.
90
RESOLUTE MINING LIMITED 2023 ANNUAL REPORT
Financial Report
NOTES TO THE FINANCIAL STATEMENTS
for the year ended 31 December 2023
D.5 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 2023
Lease assets
At 1 January 2023
Additions
Lease Termination
Depreciation
Foreign currency translation
Balance at the end of the year
At 31 December 2023
Historical cost
Accumulated depreciation
Net carrying amount
Lease liabilities
At 1 January 2023
Additions
Lease Termination
Repayments
Accreretion of interest
Foreign currency translation
Balance at the end of the year
At 31 December 2023
Current
Non current
Carrying amount at 31 December 2023
Buildings
$'000
Plant and
Equipment
$'000
Total
$'000
1,609
168
(277)
(540)
(12)
948
11,844
13,453
—
—
168
(277)
(2,960)
(3,500)
274
9,158
262
10,106
4,006
36,652
40,658
(3,058)
(27,494)
(30,552)
948
9,158
10,106
1,710
168
(334)
(620)
65
137
14,199
15,909
—
—
168
(334)
(3,408)
(4,028)
817
(39)
882
98
1,126
11,569
12,695
278
848
2,792
8,777
3,070
9,625
1,126
11,569
12,695
RESOLUTE MINING LIMITED 2023 ANNUAL REPORT
91
Financial Report
NOTES TO THE FINANCIAL STATEMENTS
for the year ended 31 December 2023
D.5 Leases (continued)
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
Carrying amount at 31 December 2022
Buildings
$'000
Plant and
Equipment
$'000
1,057
1,137
6,651
7,371
Total
$'000
7,708
8,508
(550)
(1,904)
(2,454)
(35)
(273)
(308)
1,609
11,845
13,453
3,839
36,422
40,261
(2,230)
(24,578)
(26,808)
1,609
11,844
13,453
1,219
1,137
9,858
7,371
11,077
8,508
(614)
(3,084)
(3,698)
39
(71)
447
(393)
486
(464)
1,710
14,199
15,909
645
1,065
1,710
2,728
11,471
14,199
3,373
12,536
15,909
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.
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
31 December 2023
$'000
31 December 2022
$'000
3,346
3,323
826
625
625
5,784
14,529
4,299
3,848
3,421
860
796
6,216
19,440
92
RESOLUTE MINING LIMITED 2023 ANNUAL REPORT
Financial Report
NOTES TO THE FINANCIAL STATEMENTS
for the year ended 31 December 2023
D.5 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 31 December 2023 of 5.8% (December 2022: 8.1%).
D.6 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 2023
Other financial assets
Loans to subsidiaries
Payables
Total increase/(decrease)
31 December 2022
Loans to subsidiaries
Payables
Total increase/(decrease)
Foreign exchange risk1
+10%
-10%
Carrying
Amount
$'000
Profit
$'000
Equity
$'000
Profit
$'000
Equity
$'000
1,412
570,625
67,302
128
51,875
16,157
128
51,875
16,157
(157)
(157)
(63,403)
(63,403)
14,024
14,024
68,160
68,160
(49,536)
(49,536)
691,630
62,876
62,876
(76,848)
(76,848)
63,700
137
137
(168)
(168)
63,013
63,013
(77,016)
(77,016)
1. The above analysis principally relates to the risks associated with movements in the Australian dollar against the US dollar.
RESOLUTE MINING LIMITED 2023 ANNUAL REPORT
93
Financial Report
NOTES TO THE FINANCIAL STATEMENTS
for the year ended 31 December 2023
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 Ravenswood receivables
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 and was reported in the comparative period
as a discontinued operation.
Gold Price Contingent Payment Instrument
A Gold Price Contingent Payment is payable to Resolute for years following Financial Close based on the following bands:
▪ A$10m if the average gold price is greater than A$1,900/oz
▪ A$20m if the average gold price is greater than A$1,975/oz
▪ A$30m if the average gold price is greater than A$2,050/oz
▪ A$40m if the average gold price is greater than A$2,075/oz
▪ A$50m 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 four-year period and is subject to adjustment if the production 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 four-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 four-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 (defined as a completion of a disposal, an initial public offering where
control is not maintained or a winding up of the company) within the 4-year period to be unlikely.
The Gold Price Contingent Payment Instrument is valued at a net present value of A$50.0 million ($34.0 million) at 31 December 2023
and 31 December 2022, based on the most likely amount method.
The Promissory Note is initially valued at net present value of A$50.0 million and subsequently measured at amortised cost under
AASB 9 of A$62.2 million ($42.4 million) as at 31 December 2023 ( $58.7 million/ $40.0 million at 31 December 2022).
Financial Instruments
Due between one and five years
Total contractual receipts
Less future interest charges
Total promissory notes receivable
31 December 2023
$'000
31 December 2022
$'000
51,213
51,213
(8,835)
42,378
51,259
51,259
(11,244)
40,015
94
RESOLUTE MINING LIMITED 2023 ANNUAL REPORT
Financial Report
NOTES TO THE FINANCIAL STATEMENTS
for the year ended 31 December 2023
E.2 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 Limitedand US$5 per ounce on the next three million attributable ounces
of gold production. As at 31 December 2023, 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$5 per ounce.
Gold contracts
As part of its risk management policy, the Group enters into gold forward contracts to manage the gold price for a proportion
of anticipated sales of gold. As at 31 December 2023, 48,500 ounces were hedged.
The gold forward contracts disclosed below did not meet the criteria of financial instruments for accounting purposes on the basis
that they met the normal purchase/sale exemption because physical gold would be delivered into the contract. Accordingly, the
contracts were accounted for as sale contracts with revenue recognised in the year in which the gold commitment was met.
31 December 2023
US$
Within one year
Total
31 December 2022
US$
Within one year
Between one and five years
Total
Gold for Physical
Delivery Ounces
Contracted Gold
Sale Price
per Ounce
Value of
Committed Sales
$'000
48,500
48,500
$1,995
$1,995
$94,818
$94,818
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
RESOLUTE MINING LIMITED 2023 ANNUAL REPORT
95
Financial Report
NOTES TO THE FINANCIAL STATEMENTS
for the year ended 31 December 2023
E.3 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
Other non-EY firms
31 December 2023
$
31 December 2022
$
225,921
225,921
133,227
87,500
113,348
133,522
133,522
193,954
109,375
75,234
Total amounts received or due and receivable for an audit or review of any
controlled entities financial statements
334,075
378,563
E.4 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 2023
%
31 December 2022
%
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 Mining Limited
Resolute UK 2 Limited, UK
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
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 ("Finkolo")
Petowal Mining Company SA ("Mako")
Total Non-Controlling Interest
Profit/(loss) allocated to material Non-Controlling Interest:
SOMISY
Finkolo
Mako
Total Non-Controlling Interest
100
100
90
100
100
100
100
90
80
100
100
90
100
100
100
100
90
80
31 December 2023
$'000
31 December 2022
$'000
(58,199)
(4,043)
14,269
(47,973)
21,079
(382)
5,259
25,956
(77,412)
(3,538)
9,010
(71,940)
(163)
(1,722)
1,303
(582)
96
RESOLUTE MINING LIMITED 2023 ANNUAL REPORT
Financial Report
NOTES TO THE FINANCIAL STATEMENTS
for the year ended 31 December 2023
E.4 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.
Statement of Comprehensive Income
Revenue
Gain/(loss) for the year
31 December
2023
31 December
2022
31 December
2023
31 December
2022
31 December
2023
31 December
2022
$'000
$'000
$'000
$'000
$'000
$'000
SOMISY
Finkolo
Mako
370,429
350,687
31,140
63,682
229,298
236,760
106,114
(3,967)
(14,955)
(18,388)
30,610
4,027
4,470
Total comprehensive (loss)/income for the year
109,130
(26,059)
(15,073)
(19,271)
25,351
Summarised Statement of Financial Position
Current assets
Non current assets
Current Liabilities
183,115
221,905
312,649
295,899
61,917
15,606
12,716
20,139
58
801
76,394
135,422
(133,808)
(143,749)
(3,273)
(16,785)
(122)
(97,083)
Non current liabilities – External
—
(42,279)
—
(9,103)
—
(25,951)
Non current liabilities – Intra Resolute Mining
Limited Group
(538,162)
(695,606)
(65,286)
(48,054)
Net asset/(deficiency)
(176,206) (363,830)
8,964
(41,087)
5,500
6,237
3,739
92,521
E.5 Subsequent events
On 25 March 2024 the Company repaid the remaining $25.0 million outstanding on the Syndicated Debt Facility.
E.6 Related party disclosures
Resolute is the ultimate Australian holding company and there is no controlling entity of Resolute at 31 December 2023. No related
party transactions occurred during the period other than payments to KMP as disclosed in E.8.
RESOLUTE MINING LIMITED 2023 ANNUAL REPORT
97
Financial Report
NOTES TO THE FINANCIAL STATEMENTS
for the year ended 31 December 2023
E.7 Parent entity information
Current assets
Total assets
Current liabilities
Total liabilities
Net assets
Issued capital
Accumulated losses
Reserve
Total shareholders’ equity
Total comprehensive profit/(loss) of Resolute Mining Limited
31 December 2023
$'000
31 December 2022
$'000
76,583
544,342
(2,169)
(2,169)
542,173
882,731
(423,245)
82,687
542,173
71,980
77,242
477,319
(5,825)
(5,825)
471,494
882,731
(469,485)
58,248
471,494
(177,694)
Refer to E.2 for the commitments of Resolute Mining Limited. The parent company guarantees provided by Resolute Mining Limited
are outlined in C.4.
E.8 Employee benefits and share-based payments
Salaries
Superannuation and oncosts
Share-based payments expense
Total employee benefits charged to profit and loss
31 December 2023
$'000
31 December 2022
$'000
44,918
10,324
1,763
57,005
47,036
9,942
634
57,612
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 2023
$
31 December 2022
$
2,743,244
107,016
(6,006)
540,940
3,385,194
2,426,172
91,143
(5,905)
(50,053)
2,461,357
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.
98
RESOLUTE MINING LIMITED 2023 ANNUAL REPORT
Financial Report
NOTES TO THE FINANCIAL STATEMENTS
for the year ended 31 December 2023
E.8 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 & Company Secretary
Band B1
General Managers
Plan category Grant and frequency
Performance measures
Band AO
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
Performance period
3 years
Band A1 and
A2
Annually set at 65% of
fixed remuneration
The rights will be performance tested against the RTSR measure
over a 3 year period
Band B1
Annually set at 40% of
fixed remuneration
The rights will be performance tested against the RTSR measure
over a 3 year period
3 years
3 years
Performance rights on issue
Band A1 and A2
Band A1 and A2
Band A0
Band A1, A2 and B1
Band A0
Band A1, A2 and B1
As at 31 December 2023
Issue Date
Total Number
Fair Value per
Right at Grant
Date
A$
26/10/2018
21/5/2019
22/6/2022
22/6/2022
16/5/2023
16/5/2023
13,550
73,377
1,958,147
3,307,957
3,548,554
5,334,883
14,236,468
$0.92
$0.93
$0.26
$0.26
$0.40
$0.40
Vesting Date
30/6/2021
31/12/2021
31/12/2024
31/12/2024
31/12/2025
31/12/2025
RESOLUTE MINING LIMITED 2023 ANNUAL REPORT
99
Financial Report
NOTES TO THE FINANCIAL STATEMENTS
for the year ended 31 December 2023
E.8 Employee benefits and share-based payments (continued)
Opening number of performance rights1
Decrease through lapsing of performance rights
(Band A0)
Decrease through conversion of shares upon
vesting of performance rights (Band A1 to A2)
Decrease through lapsing of performance rights
(Band A1 to A2)
Decrease through lapsing of performance rights
(Band A1, A2 and B1)
Decrease through lapsing of performance rights
(Band A1)
Decrease through lapsing of performance rights
(Band B1)
Decrease through lapsing of performance rights
(Band A1 to A2)
Decrease through lapsing of performance rights
(Band A1, A2, B1)
Increase through issue of performance rights to
eligible employees (Band A0)
Increase through issue of performance rights to
eligible employees (Band A1, A2 and B1)
Closing number of performance rights
1. All performance rights have an exercise price of $nil.
Fair Value
per Right at
Grant Date
A$
Vesting Date
Issue Date
Total Number
10,916,506
22/5/2020
(194,352)
$0.56
31/12/2022
22/5/2020
(863,792)
$0.85
31/12/2022
14/7/2021
(443,716)
$0.43
31/12/2023
14/7/2021
(1,398,849)
$0.57
31/12/2023
6/12/2021
(211,276)
$0.37
31/12/2023
6/12/2021
(219,942)
$0.31
31/12/2023
6/12/2021
(264,171)
$0.32
31/12/2023
16/5/2023
(3,932,077)
$0.40
31/12/2025
16/5/2023
3,548,554
$0.40
31/12/2025
16/5/2023
9,266,960
$0.40
31/12/2025
14,236,468
100 RESOLUTE MINING LIMITED 2023 ANNUAL REPORT
Financial Report
NOTES TO THE FINANCIAL STATEMENTS
for the year ended 31 December 2023
E.8 Employee benefits and share-based payments (continued)
The following tables list the key variables used in the valuation of each performance rights granted to key management personnel
during the year ended 31 December 2023:
Hurdle
Number of performance rights issued
Underlying share price ($)
Exercise price ($)
Risk free rate
Volatility factor
Dividend yield
Period of the rights from grant date (years)
1 January 2023 Grant
Band A0
1 January 2023 Grant
Band A1,A2 and B1
RTSR rights
RTSR rights
3,548,554
9,266,960
0.20
0.00
3.79%
68.50%
—%
3.00
0.20
0.00
3.79%
68.50%
—%
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)
$0.40
$0.40
The following tables list the key variables used in the valuation of each performance rights granted to key management personnel
during the year ended 31 December 2022:
Hurdle
Number of performance rights issued
Underlying share price ($)
Exercise price ($)
Risk free rate
Volatility factor
Dividend yield
Period of the rights from grant date (years)
22 June 2022 Grant
RTSR rights
$8,516,376
0.28
0.00
79.00%
58.30%
91.00%
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
RESOLUTE MINING LIMITED 2023 ANNUAL REPORT
101
Financial Report
NOTES TO THE FINANCIAL STATEMENTS
for the year ended 31 December 2023
E.9 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
Amendments to AASB 101:
1 January 2024
Classification of Liabilities as
Current or Non-current
Amendments to AASs –
Lack of Exchangeability
1 January 2025
In January 2020, the IASB issued amendments to paragraphs 69 to 76 of
AASB 101 to specify the requirements for classifying liabilities 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 August 2023, the International Accounting Standards Board (IASB)
issued Lack of Exchangeability, which amended IAS 21 The Effects of
Changes in Foreign Exchange Rates.
The amendments require a consistent approach to determining:
▪ Whether a currency is exchangeable into another currency
▪ The spot exchange rate to use when it is not exchangeable.
The amendments are not expected to have a material impact on
the Group.
102 RESOLUTE MINING LIMITED 2023 ANNUAL REPORT
Financial 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 2023 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.
c.
the financial statements and notes also comply with International Financial Reporting Standards as disclosed throughout
this report; and
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 2023.
On behalf of the Board
Terry Holohan
Managing Director and Chief Executive Officer
Perth, Western Australia
27 March 2024
RESOLUTE MINING LIMITED 2023 ANNUAL REPORT
103
Financial Report
AUDITORS' REPORT
104 RESOLUTE MINING LIMITED 2023 ANNUAL REPORT
AUDITORS' REPORT
Financial Report
RESOLUTE MINING LIMITED 2023 ANNUAL REPORT
105
Financial Report
AUDITORS' REPORT
106 RESOLUTE MINING LIMITED 2023 ANNUAL REPORT
AUDITORS' REPORT
Financial Report
RESOLUTE MINING LIMITED 2023 ANNUAL REPORT
107
Financial Report
AUDITORS' REPORT
108 RESOLUTE MINING LIMITED 2023 ANNUAL REPORT
AUDITORS' REPORT
Financial Report
RESOLUTE MINING LIMITED 2023 ANNUAL REPORT
109
Financial Report
SHAREHOLDER INFORMATION
As at 31 December 2023
Substantial Shareholders
Ordinary Shares
Condire Management, LP
Dimensional Fund Advisors LP
Vanguard Group Holdings
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 Rigths
a) Ordinary Shares
Number of Shares
% of Issued Capital
212,509,830
120,855,790
111,602,015
10.04
5.71
5.28
Number of Shares
Ordinary Shares
2,035
4,048
1,941
4,004
696
12,724
1,124
0.05
0.52
0.72
6.13
92.58
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
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
Vinva Investment Management Limited
The Vanguard Group, Inc.
Dimensional Fund Advisors, L.P.
DFA Australia Ltd.
Konwave AG
Macquarie Investment Management Global Ltd.
Asf Yova Mining Holding Ltd
Franklin Advisers, Inc.
State Street Global Advisors Australia Ltd.
Vanguard Investments Australia Ltd.
Regal Funds Management Pty. Ltd.
ICM Limited
First Sentier Investors Realindex Pty Ltd.
UBS Securities Australia Ltd.
Wellington Management Company, LLP
Schroder Investment Management Ltd. (SIM)
20
American Century Investment Management, Inc.
110 RESOLUTE MINING LIMITED 2023 ANNUAL REPORT
Number of Shares
% of Issued Capital
212,509,830
120,855,790
111,602,015
108,717,000
107,758,078
93,567,760
55,572,446
52,514,098
45,460,000
45,086,438
43,538,138
41,189,189
40,600,773
32,606,610
27,095,400
24,225,693
22,155,057
21,900,865
21,850,933
21,101,879
10.04
5.71
5.28
5.14
5.09
4.42
2.63
2.48
2.15
2.13
2.06
1.95
1.92
1.54
1.28
1.15
1.03
1.04
1.03
1.00
1,249,907,992
59.06
ADDITIONAL
INFORMATION
RESOLUTE MINING LIMITED 2023 ANNUAL REPORT
111
Additional Information
Corporate Directory
Stay In Touch
Registered Office
Level 17, Australia
2 Esplanade
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
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
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
@ResoluteMining
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
27 March 2024
Ordinary Shares
Performance Rights
2,129,050,013
14,236,468
112 RESOLUTE MINING LIMITED 2023 ANNUAL REPORT
CREATING VALUE FOR
SHAREHOLDERS
AND COMMUNITIES
WHERE WE OPERATE.