Jan 08, 2019

No decision on Ravenswood spin-off says Resolute

No decision on Ravenswood spin-off says Resolute

Resolute Mining has moved to hose down reports of a planned spin-off or sale of the Ravenswood gold operation to focus on its African interests.

But it will be reviewing the asset – saying this is consistent with the company’s ongoing efforts to identify cost savings and revenue enhancements as the Ravenswood Expansion Project develops.

“Resolute has not made any decision in relation to the spin-off or sale of its Ravenswood gold mine in Queensland,” it said in a company statement.

“Resolute expects to undertake a strategic review of Ravenswood in the first half of 2019.

“The company will keep shareholders informed of the progress of the review and of any decisions regarding its future ownership of Ravenswood.”

The Australian newspaper quoted Resolute chief executive John Welborn as saying ‘we love the asset but it’s in the wrong continent for us’.

In a quarterly production update on Monday, Resolute reported that gold production from its Syama operation in Mali, West Africa was up more than 50 per cent to 56,207oz. Ravenswood produced a consistent 17,484oz of gold.

In that update Mr Welborn described the December quarter was a turning point for the company.

Resolute Mining chief executive John Welborn.

“Production from Syama and Ravenswood is now on track and the commencement of sublevel caving at our Syama underground ine will provide further improvements as we commission the world’s first fully automated underground mine,” he said.

“Resolute is now ready to prioritise growth and take bold steps in 2019 including listing on the London Stock Exchange”.

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