Permitting and Financing Risks Loom as Resolute Expands in Côte d’Ivoire

Strategic Acquisition Expands Resolute’s West African Footprint

Resolute Mining Limited (ASX: RSG) has announced a transformative acquisition of AngloGold Ashanti’s Doropo and ABC gold projects in Côte d’Ivoire, marking a significant step in its diversification and growth strategy. The transaction, valued at US$150 million in cash consideration plus contingent payments, also involves the transfer of Resolute’s exploration permits in Guinea to AngloGold Ashanti, effectively realigning the company’s asset portfolio towards one of West Africa’s premier mining jurisdictions.

The acquisition adds approximately 5.2 million ounces of gold resources to Resolute’s portfolio, representing a 47% increase in group resources. This substantial boost is expected to underpin a pathway to more than 500,000 ounces of annual gold production by 2030, a marked increase from the company’s current guidance of 275,000 to 300,000 ounces in 2025.

Doropo: A High-Quality Development Asset with Strong Economics

The Doropo project stands out as a robust, high-margin development opportunity with a 10-year mine life, supported by a Definitive Feasibility Study (DFS) completed in July 2024. The DFS outlines a project with 1.88 million ounces of proven and probable reserves grading 1.53 grams per tonne, a construction cost estimated at US$373 million, and an average annual production of 167,000 ounces at an all-in sustaining cost (AISC) of approximately US$1,047 per ounce.

Located in the northeastern Bounkani region, Doropo benefits from an awarded environmental permit and is on track for a construction decision by the end of 2025, subject to permitting timelines. The project’s economics are underpinned by a conservative gold price assumption of US$1,450 per ounce for reserves, which is notably below Resolute’s internal price assumption of US$1,950 per ounce, suggesting potential upside.

ABC Project: Exploration Upside and Pipeline Enhancement

The ABC project, an advanced exploration asset in the Kabadougou region, adds further depth to Resolute’s Côte d’Ivoire portfolio with an inferred resource of 2.16 million ounces at 0.9 grams per tonne. While still in the exploration phase, the project offers significant potential for resource growth through targeted drilling programs aimed at higher-grade prospects. Resolute plans to leverage its expertise to unlock value from this greenfield opportunity, complementing the near-term development focus on Doropo.

Financial Structure and Funding Strategy

The acquisition’s US$150 million cash consideration is structured with an upfront payment of US$25 million on closing, followed by deferred payments of US$50 million and US$75 million at 18 and 30 months post-closing, respectively. This deferred payment schedule aligns with Resolute’s cash flow generation from its existing Syama and Mako operations, minimizing the need for external financing.

Development funding for Doropo’s construction is expected to come from a combination of existing liquidity, operational cash flows, and project financing options currently under exploration. As of the end of Q1 2025, Resolute reported a net cash position of US$100.3 million, providing a solid financial foundation to advance the project.

Portfolio Diversification and Growth Outlook

By adding Doropo and ABC, Resolute significantly diversifies its operational and geographic footprint, increasing exposure to Côte d’Ivoire, a jurisdiction known for its mining-friendly policies and exploration potential. This diversification reduces reliance on existing assets in Mali and Senegal and enhances the company’s growth pipeline.

The combined portfolio, including the Mako and Syama mines, positions Resolute on a trajectory to exceed 500,000 ounces of annual gold production by the early 2030s, supported by a cost base expected to improve with the addition of Doropo’s low AISC profile. The company remains open to future accretive growth opportunities and signals a commitment to returning cash to shareholders as it executes this expansion strategy.