Africa-focused gold miner Resolute Mining (ASX:RSG, LSE:RSG) says an updated definitive feasibility study (DFS) has increased the scale and extended the outlook for its Doropo gold project in Côte d’Ivoire, lifting projected output and strengthening returns under its base-case assumptions.
The Australia-headquartered gold producer said the updated DFS, compiled by Lycopodium and based on work that follows the 2024 DFS prepared by Centamin, expands the mine plan, including a 55% increase in ore, a longer operating horizon and higher average life-of-mine production.
Under the revised plan, Doropo is forecast to produce an average 170,000oz/y over 13 years, for total production of 2.2mn oz, compared with the earlier estimate of 167,000oz/y over ten years. Output in the first five years is projected at 204,000oz/y, according to the study.
On the economics, Resolute reported a post-tax NPV5% of $1.46bn and an IRR of 49% using a $3,000/oz gold price assumption. On a sensitivity case using an average spot price of about $4,200/oz, the company said post-tax NPV5% rises to $2.76bn, with an IRR of 77% and payback of about one year.
Costs are higher in the updated plan. The life-of-mine AISC is estimated at $1,406/oz, versus $1,047/oz previously, while the first five years are modelled at $1,294/oz. Resolute attributed the shift to the larger project configuration and updated input costs.
Initial construction capital is now estimated at $516mn, up from $373mn in the prior work. Resolute said the expanded build and refreshed pricing assumptions underpin the higher figure, while Eger said the project could repay capital in under two years at the $3,000/oz base-case price.
Resolute also highlighted projected early cash generation, citing average annual post-tax free cash flow of $268mn and EBITDA of $364mn over the first five years on a 100% basis, which it said supports financing discussions once permitting is secured.
The company said it continues to target a mining licence by early 2026, with construction still aimed for H1 2026 once final approvals, financing and an investment decision are completed. Resolute added that Doropo could be extended further through exploration and resource growth across the permits.
Resolute said Doropo would support its ambition to build a more diversified production base across multiple assets and jurisdictions, targeting output of more than 500,000oz/y from 2028, while contributing over $420mn in royalties and social payments and supporting employment of more than 1,500 workers at peak construction and over 400 during operations.
© 2025 bne IntelliNews, source Magazine