Chris Eger, the new CEO of Resolute Mining, is not traveling to Mali after his predecessor’s detention. The company faces increased operating costs due to changes in the mining code and is considering diversifying its operations. Analysts have lowered profit forecasts for the next two years amid the uncertain situation in Mali.
Resolute Mining (RSG) CEO Chris Eger has decided not to travel to Mali, following the troubling detention of his predecessor Terry Holohan, who was held for two weeks after attending a government meeting. Holohan eventually resigned after his leave of absence. Eger, confirmed as the permanent CEO last month, faces significant challenges.
Eger’s top priority is adapting Resolute’s operations to the amended mining code in Mali, which is projected to increase the cost of running the Syama mine by approximately $250 (£127) per ounce. He also indicated that exploring diversification opportunities is essential since all of Resolute’s current mines and exploration sites are situated in West Africa.
The situation in Mali is expected to persist, with Resolute already having paid $160 million to the country amid Holohan’s detention, but finalizing their long-term strategy will hinge on approval of the new mining code. Analysts from Berenberg have adjusted their cash profit estimates downward for 2025 and 2026 by 34% and 39%, predicting $261 million and $219 million respectively.
Resolute Mining is navigating complex operational transitions due to the revisions in Mali’s mining code, which will significantly increase operational costs. With its future prospects contingent upon regulatory approvals, the company is also exploring diversification in response to regional challenges. Analysts anticipate a decrease in projected profits, highlighting the ongoing uncertainties in their financial outlook.
Original Source: www.investorschronicle.co.uk
