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Edited Transcript of RSG.AX earnings conference call or presentation 28-Feb-20 5:30am GMT

Full Year 2019 Resolute Mining Ltd Earnings Call

Perth Mar 18, 2020 (Thomson StreetEvents) -- Edited Transcript of Resolute Mining Ltd earnings conference call or presentation Friday, February 28, 2020 at 5:30:00am GMT

TEXT version of Transcript

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Corporate Participants

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* David Nicholas Kelly

Resolute Mining Limited - COO

* John Paul Welborn

Resolute Mining Limited - MD, CEO & Director

* Stuart Gale

Resolute Mining Limited - CFO

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Conference Call Participants

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* Ben Crowley

Macquarie Research - Gold Analyst

* Reg Spencer

Canaccord Genuity Corp., Research Division - Mining Analyst

* Warren Edney

E.L. & C. Baillieu Limited, Research Division - Equity Research Analyst

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Presentation

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Operator [1]

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Thank you for standing by and welcome to the Resolute Mining 2019 Preliminary Final Report Conference Call. (Operator Instructions)

I would now like to hand the conference over to Mr. John Welborn, Managing Director and CEO. Please go ahead.

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John Paul Welborn, Resolute Mining Limited - MD, CEO & Director [2]

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Thanks very much, Rachel, and welcome to everyone dialing in, and thank you for listening in to our conference call on the publication of our preliminary's final report, Appendix 4E, for the year ended 31 December 2019. I'm joined on this call by Resolute's Chief Financial Officer, Mr. Stuart Gale; and Resolute's Chief Operating Officer, Mr. David Kelly. And I'll pass over to both David and Stuart to discuss various elements of our year through to the end of 2019.

We published an Appendix 4E. It's an unaudited financial report for the year, but it does provide some outlines of both the successes we've had during the year and also the challenges we've already faced. Running through the highlights quickly before getting into some of the detail. We achieved sales revenue from our gold and silver sales of AUD 770 million compared to the previous 12 months of AUD 466 million, and that comprised $656 million from our continuing operations at the Syama gold mine in Mali and the Mako gold mine in Senegal and included $114 million from Ravenswood in Queensland. And noting that Ravenswood is treated in the accounts as a discontinued operation after our announcement early in 2020 that we've sold that asset for up to AUD 300 million to a consortium led by EMR Capital.

The strongest number in today's accounts are the underlying EBITDA number of AUD 202 million after adjustments for various nonrecurring items, including the one-off inventory valuation adjustments incurred due to the Syama roaster being taken off-line for repairs in the fourth quarter of the year, an incident that has clearly affected our performance during 2019.

Our net operating cash flow for the 12 months was AUD 124 million compared with AUD 34 million for the previous period. And because of those adjustments, we're actually recording a net loss after tax for continuing operations of AUD 59 million, which corresponds with a loss per share of $0.07, and we'll be talking about various numbers later on in this call.

Some other highlights. Investment in growth projects and other capital and exploration expenditure was AUD 308 million, and that followed the previous period's investment of $181 million. And clearly, the 2019 represents a pivot period for our investment in growth as we move forward to looking to cash flow generation from those investments.

We previously reported our group gold sales of 395,000 ounces off the back of gold production of 385,000 ounces. Both of those numbers compared to our original guidance of 400,000 ounces for the 12 months, which we actually got quite close to despite losing up to 40,000 ounces due to that roaster shutdown. So it would have been a much stronger year but for that issue.

Cash and bullion at the end of the year was $151 million with listed investments of $30 million. And the gross debt number, AUD 611 million at the end of the year with net debt at $460 million. Obviously, we've started 2020 with a lot of activity, the sale of the Ravenswood project, which I've discussed, and also, the equity raise being up to AUD 195 million, which had allowed us to repay the USD 130 million Taurus bridge facility, and we'll see that debt reducing both in terms of gross terms and net debt terms, particularly through our performance through 2020.

On the back of recording a net loss after tax, we've decided to defer our dividend for FY '19. Resolute has a dividend policy which seeks to pay a minimum of 2% of our gold net revenue to shareholders as an annual dividend, and we're deferring the decision on a dividend for FY '19. And noting that the last dividend we paid was for the 12 months for 30 June 2018. Since then, we've moved to a calendar year financial period. So we've effectively got 18 months now where we haven't paid a dividend on those revenues. And we look to put the company in a position where we can declare a future dividend and with reference to the revenue we've generated since that last dividend was announced.

Other than the financial numbers, we have some highlights in relation to our performance during the year. We're particularly proud of an improving safety performance. Our TRIFR was reduced to 2.09 at the end of the year, down from 2.8 in the previous year, and that is already a very strong result, but we are always looking to improve our focus and delivery of safety outcomes.

A highlight of the year was the acquisition of Mako gold mine in Senegal, a highly cash flow generative asset that expands our footprint into a new jurisdiction and adds to the Syama in -- as part of our focus on becoming a multi-mine low-cost African gold producer. The year was also marked by the full commissioning of the Syama underground mine. We also signed a new agreement with Aggreko for the construction of what will be the world's largest mine site by -- solar hybrid power station, and I'm pleased that work has already started on that new project funded by Aggreko. We signed a new mining convention with the Mali government and had an updated mining permit issued. We've had exploration success at Tabakoroni, and we started study work now on what we believe will be a future underground mine there.

I mentioned the Ravenswood outcome. Obviously, we're working on the strategic review of our Bibiani assets. So there's been a great deal of activity across the group. We, early in 2020, on the back of the acquisition of Mako and positive exploration, we announced an updated mineral resources statement, which included 19.1 million ounces of gold and an enormous revenue -- resource of gold for a company of our size, and that includes 7.4 million ounces of gold reserves sitting underneath mills we own and operate and control.

During 2019, we listed on the London Stock Exchange, and I'm pleased that, that's seen an expansion of our register, and we're particularly pleased to see some long-only London names joining in the recent equity raising. And we started 2020 on the back of the performance of 2019 with guidance of 500,000 ounces at an all-in sustaining cost forecast of USD 980 an ounce. And that guidance obviously will be updated once we've settled on the Ravenswood deal.

Clearly, there's a lot of positives in 2019, but as I mentioned, we are disappointed to be recording a net loss. The figures for 2019 are clearly impacted initially by a slower-than-expected ramp-up of the Syama underground mine and then the impact of what was a structural failure of the Syama roaster, a critical piece of our reprocessing infrastructure and what should be our largest gold-producing unit, and that roaster was down for most of the December quarter.

And while that was a huge challenge for the company, it also represents one of the activities that I'm most proud of across the company in 2019, the focus of our operating team and our project team in bringing that roaster back online by the end of the year and back into nameplate capacity for 2020 was an activity that I've described as Herculean and was expertly done and with 0 lost time injuries and an important recovery that sets us up very well for a strong year in 2020.

Looking for -- I'll come back to talk more about 2020, but to talk about some of the operational challenges and achievements, I'll pass across to Resolute's Chief Operating Officer, Mr. David Kelly.

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David Nicholas Kelly, Resolute Mining Limited - COO [3]

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Thanks very much, John. I suppose I'd just like to reiterate what John said about last year and the fact that we obviously suffered some significant operating challenges in the roaster, which have been very well documented. That occurred on top of the period in which we were ramping up the underground mine, which obviously magnified the effects of that failure.

What I'll move on to now is how things have progressed since that issue was identified and rectified late last year and some of the performance improvements that we're seeing from the operations this year. And starting with the underground mine at Syama, which is obviously the feed source for the sulfide plant, production has accelerated significantly in the first 2 months of 2020, and we're seeing average oil production rates approaching our target annualized rates. So that's been driven by a record production month in January, and we expect to exceed that in February.

So that means I think, for the group, a strong degree of confidence in our capacity to sustain those production rates and to deliver over the remaining mine life at and above the target nameplate capacity of the mine. Combined with a stockpile that was accumulated last year, while the roaster was shut down, we're very well placed to maintain mill throughput right through this year from underground feed exclusively. So we're well on the way to obviously sustaining the production rates that have been anticipated from the mine for some time.

On the processing front and similar to the underground production, mill throughputs stepped up substantially in the first couple of months of 2020, and those rates are in line with our forecast and supported by -- of our full year guidance. The roaster throughput, which is obviously the key item of infrastructure that we had issues with last year, very much have been in line with target, and similarly, overall plant recoveries improving and again, in line with target and guidance for the quarter. So the gradual improvement we've been seeking in recoveries since we started the roaster and the sulfide mill at the start of the year have been observed, and we're obviously building towards our full year targets for that asset and for the overall business.

So it's been a much changed output since the rectification work we undertook last year. The good news, I think, from our perspective is we're continuing to optimize and fine-tune the operation of both the roaster and the other circuits that make up the sulfide processing plant, and we can see significant room for further improvement in both throughput and recovery. So that's been most encouraging.

The oxide operations are proceeding well. Mining is progressing above plan, both waste and ore extraction, ahead of our forecasts and processing is similarly going to plan with recoveries and throughputs at this stage above our internal forecast. So we're certainly confident the oxide business will -- is on track to meet full year guidance.

Finally, of our continuing assets, Mako continues to outperform guidance and budget based on what we've observed year-to-date. The ore volumes and grades in the pit are a little ahead of the plan and process grades are also above target. And Mako, as I think has been aptly demonstrated over the last 5 months, is proving to have been a very robust acquisition, a very sound operation, and it's exceeding and meeting all the expectations we had when we acquired the asset.

Overall, given obviously some of the trials we endured last year, the outlook for this year is very positive. We're looking forward to a good, solid operational year and substantial cash flow generation as a consequence. And obviously, as has been made -- the market has been made aware, on completion of the Ravenswood disposal, we'll reissue guidance. But at this stage, our expectation is that, that will merely be -- merely reflect the removal of the Ravenswood contribution from the overall production predictions.

So with that, I'll hand back to John. And obviously, we can -- I can deal with any questions that might emanate about the operational stuff at the end of the conference call.

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John Paul Welborn, Resolute Mining Limited - MD, CEO & Director [4]

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Thanks very much, David. One of the highlights I neglected to mention in my introduction during 2019 was the recruitment of our new Chief Financial Officer, Mr. Stuart Gale, who joins us from a range of similar roles in the Fortescue Metals Group. So I'm pleased to pass over to Stuart to run through the financials we published today in more detail. Over to you, Stuart.

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Stuart Gale, Resolute Mining Limited - CFO [5]

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Thanks, John, and hello to everyone. Good afternoon. It's a real pleasure to join the Resolute team on what's my first conference call. So I'm looking forward to catching up with everyone who's on the line in the very near future and to work through these results.

I guess John touched on my background just at Fortescue. I think one of the things that's key for me is to really focus on operational performance and to help with Dave and the team, in terms of the delivery of that all-in sustaining cost number at $980 per ounce for FY '20 together with a production focus. So very much my background, and I want to make sure that we can provide every assistance that we can from a finance perspective towards delivering that.

If we're just turning to the financials now. I think it's a real challenge when you look through the details of the 4E to make strong comparisons with the number of complex issues that we're dealing with from an accounting standards perspective in the FY '19 financial statements. There's a couple of things that just make those financial statements a bit tricky. First of all, we have the Toro acquisition and the purchase price accounting allocation to the Mako assets that we flow through. We also have Ravenswood, which is held as discontinuing operations.

And unfortunately, we have to pull those numbers out from an accounting reporting perspective. So the numbers that you look at in the financial statements do not reflect Ravenswood for a year. We just see that come through as one line. And we also have leased -- the leased asset accounting standard coming in, which adds leased assets. And just for good measure, because we changed year-ends, we only have comparators for 6 months. So the comparators that you see in the financial statements because of the accounting standards just make it really difficult to comp to prior years.

So what we've done on Page 4 of the release is just pull together a summary, which brings together effectively Syama, Mako and Ravenswood to give a consolidated view of FY '19. And also, we've added together 2 6-month periods which is an unaudited number that -- effectively to give a sensible comp to the prior year. So you can see that for FY '19, we have a group result from a revenue perspective of $770 million and comparing that to the 465 -- $466 million that we had with the combined FY '18 numbers.

I think the important point to look at there is really around the earnings before interest and tax. You see for the group, it's $123 million, which very closely approximates to our free cash flow number, which is what you'd expect. So we see $123 million flow-through there. John's touched on a couple of points, but I think the nonrecurring items are just worth dwelling on for a second, in particular, as John noted, the roaster shutdown, which had $45 million worth of one-off impacts that flowed through in our FY '19 numbers. And those one-off impacts effectively reflect the fact that we have largely a fixed operating cost base, and that fixed operating cost base obviously didn't have a significant contribution to gold production during that December quarter, so considered as a one-off. It also flowed through as some net realizable value adjustments in inventory.

Mako acquisition, the number that you see there is $19 million of one-off, is effectively the purchase price accounting and therefore, the allocation of a purchase price uplift to our inventory balances that sit at Mako, so it's not reflective of the cost of producing that inventory, but we've essentially had to have a $19 million uplift that's gone on to that as a result. So that's just a one-off thing that we shouldn't -- we wouldn't expect to see flowing through in future years. And there's obviously a number of transactional costs that occurred throughout the course of FY '19 as well that flow through into that $13 million worth of business development and other costs.

So taking those into account and looking at the business on a go-forward basis, if you just want to look purely from an operational perspective, we're running an underlying EBITDA number of $201 million compared to the $51 million relative to last year.

A couple of other points that I'd just like to highlight in that table. You'd also note that the depreciation and amortization charges increased significantly relative to the prior year. That's essentially reflective of having the Mako operations online for 6 months likewise with the Syama underground coming into production increases our D&A charge on that. We've had lease accounting, which flows through as well. That's about $12 million just worth of additional D&A as a result of changes in accounting. And we've also had the Tabakoroni pit, which there's been a significant charge that's flowed through there as we really mined that area very, very hard during the course of FY '19.

The other point I'd just like to make is on tax. We see tax which is about $25 million there. The majority of that relates to our oxide operations at Syama and the Mali tax expense associated with the profit that was generated from those oxide operations, so that was key. If you look at the number of ounces that were produced and the margin per ounce, you can pretty much work back to that number given that the Mali tax rate is at 25%.

So hopefully, that gives people a reasonably clear picture at a high level of what our P&L looks like on a consolidated basis and what it comps back to in 2018. From a balance sheet perspective, we finished the year with cash of $124 million, bullion value of about $27 million, which gave us a total of $151 million of cash and bullion. Comparing that to our gross debt number of $610 million gives us a net debt position of $430 million (sic) [$460 million]. So obviously, an increase in our gross debt position, but obviously reflective of the value-accretive transactions that we've put in place during the course of the year in the acquisition of Mako.

So John, I think with that, I'll hand it back to you and wait for some questions.

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John Paul Welborn, Resolute Mining Limited - MD, CEO & Director [6]

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Thank you very much, Stuart, and back to you, Rachel, for any questions from listeners. I'll come back and close off with some comments when we're finished with Q&A.

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Questions and Answers

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Operator [1]

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(Operator Instructions) Your first question comes from Reg Spencer from Canaccord Genuity.

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Reg Spencer, Canaccord Genuity Corp., Research Division - Mining Analyst [2]

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Just got one. It's a good overview of the financials. Thanks, Stuart. Just relating to the Malian tax assessment. I was just wondering if you could provide a little bit more color on that, if you can, and what we might expect given -- this early stage, given that you were notified of that assessment only yesterday, as to the possible implications and outcomes there.

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John Paul Welborn, Resolute Mining Limited - MD, CEO & Director [3]

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Yes. Thanks, Reg. And you're correct to note that we've received some correspondence yesterday. You might imagine that, that is somewhat complicated what we had originally hoped was going to be the publication of our audited financial statements.

This is not uncommon in African jurisdictions. We've made that disclosure quite clear in today's announcement that we are disputing the assessment and the timing of that correspondence is somewhat unfortunate. We're confident that we've got a very strong basis to refute the assessment of that claim under the terms of our establishment convention.

And if you're familiar with Mali, there has been a very similar case a few years ago where Randgold disputed an assessment and eventually were successful. We're at an early stage of assessing this assessment, and we'll be in discussions with the Mali tax authority, the Mali mining minister and the Mali finance minister over the coming days and weeks to get some more detail. And we've made it clear that we don't believe it's valid, but this is obviously a complicated situation.

I'll pass over to Stuart, perhaps just to mention any further detail or talk about the accounting treatment.

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Stuart Gale, Resolute Mining Limited - CFO [4]

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Yes. No. Thanks, John. I think you've summed it up pretty well. I think I sort of wrapped my discussion up there just around the income tax expense that you're seeing booked in FY '19. That has nothing to do with this dispute that we just received. So this is on top of that, but we pay our tax on a monthly basis, on an installment basis.

So from our perspective, where we're at from the tax payments is we're up to date and we're totally clear on those things. You'll note we have a VAT receivable that sits in our accounts as well. And that's something that we are also very strong in terms of our receipt of that moving forwards. In actual fact, we have been using that to offset some of our monthly installments. So yes, as John said, we'll be fighting this strenuously.

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John Paul Welborn, Resolute Mining Limited - MD, CEO & Director [5]

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And as we disclosed, it relates back to 2015, '16 and '17. It's a treatment that is inconsistent with our convention, and we'll have to establish more understanding as to how we resolve that. But clearly, at this stage, as we said, we're not including those amounts in the financial accounts.

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Operator [6]

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Your next question comes from Ben Crowley from Macquarie Group.

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Ben Crowley, Macquarie Research - Gold Analyst [7]

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Yes. Just wondering, just a quick one for David, I think, really. David, whether you could maybe just run us through those recovery targets that you talked about, what you mentioned for the roaster. And then also just sort of remembering back to the P85 project and sort of where we're at and whether that's still a potential target for recoveries at the roaster.

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David Nicholas Kelly, Resolute Mining Limited - COO [8]

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Yes, sure. So for the year, we have set slightly lower recoveries overall in pursuit of our overall budget and guidance production for Syama so far for this year. So we're assuming in the low 80% recoveries for their current budget and guidance. The 80 -- and that reflects the fact that we expect recoveries to build up over a period of time given all of the changes and modifications and hopefully, enhancements we've made to the plant over the last little while. Long run, 85% above remains our target for the asset, and there's been no change to our view of our capacity to achieve that, and that's very much the sort of life-of-mine view for that asset.

What we're seeing so far, I think, is very supportive of that in terms of the contribution of recovery from both flotation recovery and calcine CIL recovery, calcine being the product obviously after we have combusted the sulfide concentrate in the roaster. And we're seeing both of those improving to the point where they're capable of in the long run, supporting the 85% recovery that we remain committed to achieving.

But this year, we've been a little more conservative given the need to sort of slowly and gently bring the thing back up to speed over the course of this year. So hence, the fact that, as I say, our current guidance is supported by slightly lower-than-average life-of-mine recovery assumptions for the sulfide asset.

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Operator [9]

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(Operator Instructions) Your next question is from Warren Edney from Baillieu.

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Warren Edney, E.L. & C. Baillieu Limited, Research Division - Equity Research Analyst [10]

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I've got 2 questions. One on recurring -- the nonrecurring items and one just on the balance sheet. Firstly, on the nonrecurring items. Am I right in thinking that the $45 million related to the inventory adjustments was already previously recognized in the operating cost that you quote on a quarterly basis, whereas the other 2 are sort of something separate and just one-off as a result of your adopting whatever changes in accounting standards are?

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Stuart Gale, Resolute Mining Limited - CFO [11]

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Yes. Warren, Stuart here. I'll jump in on that one. Yes, certainly, the inventory adjustments for the roaster essentially reflect what flowed through from an operating cost perspective in that December quarter. So our figure operating cost...

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Warren Edney, E.L. & C. Baillieu Limited, Research Division - Equity Research Analyst [12]

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Okay. Because that was quite a big number. I just wanted to check, that's all. And...

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Stuart Gale, Resolute Mining Limited - CFO [13]

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So the reason that we've treated it there is because we basically got no ounces out of the process during that quarter. So obviously, had you got ounces out, then that $45 million would have been contributing to those ounces and it wouldn't have been a one-off.

And the other points, yes, are straight up. The Mako acquisition is a purchase price accounting position that we have to take from accounting standards perspective and those costs go into inventory. And that inventory gets released and it's just a one-off cost because it's not reflective of the actual Mako cost of production.

So it's just one of those things, again, from an accounting perspective. And yes, it flowed through into the all-in sustaining -- no, it didn't flow into the all-in sustaining cost. And yes, those other BD costs, again, not part of the AISC costs. And yes, you're right. They're just one-off costs that we've written off.

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Warren Edney, E.L. & C. Baillieu Limited, Research Division - Equity Research Analyst [14]

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Okay. Now what I wanted to do is just try and get a handle on what the balance sheet looks like now post the equity raise. So just so I understand it, you've got the $195 million that you've raised in equity. You've spent $130 million of that paying down the debt, so the debt is now, on that basis, would be $480 million instead of $610 million, and you've got $65 million cash to go to your cash balance at the end of the year. Is that sort of vaguely how it works or have I missed something?

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Stuart Gale, Resolute Mining Limited - CFO [15]

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You're broadly there, Warren, except for the fact that the $130 million was in U.S. dollars.

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Warren Edney, E.L. & C. Baillieu Limited, Research Division - Equity Research Analyst [16]

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Okay. All right. So you haven't -- there's no other debt or anything like that, that I need to take into account?

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Stuart Gale, Resolute Mining Limited - CFO [17]

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No, I think you can see -- we will publicize all that debt that sits out there in that $610 million. Now that's obviously (inaudible). I should also -- just for the record as well, that in FY '20, that we'll see us transition to U.S. dollar reporting as well. So that I think will make it a lot more clear from a gold sales perspective and also when we come to refinance our debt.

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Operator [18]

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Your next question is a follow-up from Reg Spencer.

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Reg Spencer, Canaccord Genuity Corp., Research Division - Mining Analyst [19]

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Just a quick follow-up on the progress of that refinancing. I know you made a comment in the announcement that discussions were continuing. Are we close to completing that process? Are we far away? Just wondering if you could provide a comment on that, please.

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John Paul Welborn, Resolute Mining Limited - MD, CEO & Director [20]

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Yes. Sure, Reg, and it goes to the previous question as well in that we're very close to concluding an expansion of our existing syndicated line facility that has a current balance of USD 150 million. Part of our debt is a stand-alone facility alongside that from the same syndicate of USD 45 million put in place late last year. And our intention is to expand that into a similarly low-cost revolving flexible senior debt facility of USD 300 million.

And we've been updating the market, as you referred to, that we intend to lock that in during the March quarter. So today's disclosure is consistent with strong confidence that the credit process is proceeding positively, and we expect to be concluding that refinance on the back of our equity raise and closing Ravenswood in the months that's left in this quarter.

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Reg Spencer, Canaccord Genuity Corp., Research Division - Mining Analyst [21]

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That's great. And just to comment on that refinancing, John, expectations on additional hedging. I see you put it in place another little hedge just today. Will that refinancing include additional hedges given where the gold price is? Or would you voluntarily look to lock in a little bit more? Or would you just continue the current policy that you have in place?

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John Paul Welborn, Resolute Mining Limited - MD, CEO & Director [22]

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Yes. Look, you're correct to link our recent series of hedges. We've been rolling hedges for a while in what I believe is quite a modest and appropriate fashion given our current debt balances. And the hedges you've seen us put on early in 2020 are consistent with controlling our own destiny in relation to the hedge profile that the syndicate banks will want as we expand that senior debt facility. And with approximately 30% of our 18-month forecast production currently hedged, we would see that, and we're confident that the banks see that as around the appropriate level of hedging.

So I think the answer to your question is we don't see any -- the reason we've been hedging is to make sure that when we close that facility, and the answer to your first question is we're very close to doing so, there will be no need for any additional hedges other than the rolling series of hedges we've now got in place. And obviously, that strategy also has been useful in the strongly rising gold price environment because it's allowed us to, for example, today, access that strong spot price in putting in our longest-dated forwards as well as increase the average balance of that hedge book that the banks are going to be comforted by as they support us with an expanded facility.

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Operator [23]

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There are no further questions at this time. I'll now hand back to Mr. Welborn for closing remarks.

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John Paul Welborn, Resolute Mining Limited - MD, CEO & Director [24]

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Thanks very much, Rachel. Thanks very much who's either joined the call or who's listening to the recording. We have a mission statement at Resolute, which is to mine gold and create value. Clearly, there are lots of positives during 2019, and we achieved a number of the key strategic objectives that we set out to do so at the start of the year.

However, it is disappointing to record a net loss today and we are all dedicated at Resolute to making sure that we perform better in 2020. We have started the year very positively in relation to the positive divestment of the Ravenswood asset. And as David has described in our operating model, we have Syama firing on all cylinders and Mako, a great addition to our asset, and we're looking to generate strong positive free cash flows and returned to supporting our shareholders, both the dividend policy and an appreciating share price.

I look forward to informing the market of the other strategic objectives we're looking to put in place during the March quarter. We'll be publishing our audited financial accounts before we publish the March quarterly activities report. And I look forward to future opportunities to answer questions and deliver conference call results. Thank you very much for your attention today.