RMGGF - Resolute Mining: Why It's Best To Avoid This Sector Laggard
- Resolute Mining released its Q3 results this week and is tracking well below its initial FY2020 production guidance of 430,000 ounces.
- While the Syama strike has been resolved alleviating the risk of further action, the weakened Q3 results due to lower productivity has been a massive dent in year-to-date gold production.
- Meanwhile, Resolute's average realized gold price continues to come in at the weakest levels sector-wide, with costs likely to come in US$1,080/oz for FY2020.
- Given that Resolute has no real redeeming qualities being a high-cost and partially hedged producer operating in Tier-3 jurisdictions, I see the stock as an Avoid in favor of Tier-1 producers.
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Resolute Mining: Why It's Best To Avoid This Sector Laggard