Resolute Mining has frozen the pay of its senior management and taken a $70 million hit as weakness in international gold markets continues to hurt miners of the precious metal.
Perth-based Resolute released a quarterly report today, which flagged a $70 million impairment charge relating to its investments in fellow Africa-focused miner Noble Mineral Resources.
Noble was forced to halt surface mining activities at its Bibiani project in Ghana in May, due to the sharp fall in the price gold bullion that occurred during the June quarter.
Resolute holds a 19.7 per cent stake in Noble, primarily in the form of convertible notes.
Resolute said it would continue to evaluate its operating costs in the face of the significant reduction in gold value over the June quarter, implementing a pay freeze across its senior management positions.
“The company continues to monitor and assess the deployment of its capital across its existing growth projects, new projects and overall capital management program,” Resolute said in a statement.
Resolute’s total output for the quarter was 102,685 ounces of gold on cash costs of $841/oz.
The miner said it was forecasting gold production of 345,000 ounces for the 2014 financial year, at cash costs of $890/oz.
At close of trade today, Resolute shares were up 5.6 per cent, trading at 85 cents.
