Mali challenges force Resolute Mining to cut Syama outlook
Mining and supply constraints have hit the mine’s output, but Resolute targets a fourth-quarter recovery at the operation.
Resolute Mining has reduced its production outlook for the Syama gold mine in Mali, cutting the expected output by nearly a quarter due to mining constraints and supply disruptions. The company now anticipates Syama will produce between 150,000 and 160,000 ounces of gold in 2026, with an all-in sustaining cost of $2,300 to $2,400 per ounce.
This is a significant drop from previous guidance of 195,000 to 210,000 ounces at $1,950 to $2,150 per ounce. CEO Chris Eger stated that despite efforts to improve operations, the challenging environment in Mali has resulted in production falling short of expectations. The setback has also lowered the company's overall group guidance to 205,000 to 225,000 ounces at an AISC of $2,250 to $2,350 per ounce, down from previous estimates of 250,000 to 275,000 ounces at $2,000 to $2,200 per ounce.
Syama's production has remained below plan since Resolute's second-quarter report due to supply issues disrupting underground and open-pit operations and sulphide processing. Underground mining has been hampered by intermittent explosives supplies and ammonium nitrate-fuel oil instead of low emulsion. Wet conditions have slowed down new draw points development and production.
Open-pit mining at A21 is also lagging behind, delaying access to higher-grade ore. Resolute has switched mining contractors and is implementing an accelerated mobilization program to boost productivity and regain access to planned ore sources. Production is expected to improve to about 15,000 oz. in September, with third-quarter output at roughly 31,000 oz.
Recovery is anticipated to continue during the fourth quarter, with output forecasted to range between 45,000 and 50,000 ounces. Resolute is constructing an on-site emulsion plant to reduce reliance on explosives supply disruptions and adding open-pit fleet capacity to improve equipment availability. CEO Chris Eger emphasized that stabilizing explosives supply and working with the contractor to increase fleet availability are the immediate priorities for Resolute.
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