Shares in Resolute Mining slide after the company warns its Syma gold mine in Mali will produce far less metal this quarter than first planned. The miner now expects about 30 thousand ounces from Syma in the second quarter, down from earlier guidance of 40 to 45 thousand ounces.
Traders react quickly, pushing the stock down 6.5% to $1.11 in afternoon trade.
Management links the downgrade directly to escalating security issues in Mali between late April and May that hit supply chains hard. Road insecurity delayed critical equipment deliveries to the Syma site, slowing underground operations and pushing back planned work.
Intermittent blasting and temporary shortages of explosives, also tied to regional instability, hurt ore quality. The mine leaned more heavily on lower grade stockpiles, dragging overall output lower.
Operational teams at Syma expect production to recover once they regain steady access to higher grade underground ore and conditions on key transport routes stabilise. Despite the weaker second quarter, Resolute still guides for full year Syma output to land at the bottom of its existing 195 to 210 thousand ounce range.
The broader business remains cash generative, which gives the company flexibility to keep funding its growth pipeline. That includes the Doropo development project which continues to move ahead in line with its current plan.
