Resolute Mining Limited — Interim / Quarterly Report 2016

Feb 28, 2016

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Friday, 26 February 2016

Appendix 4D

For the six months ended 31 December 2015

Reporting Period

The reporting period is for the half year ended 31 December 2015 with the corresponding reporting period being for the half year ended 31 December 2014.

Results for announcement to the market

Results for announcement to the market
Results Net profit after tax attributable to members of the parent Revenue from gold and silver sales (continuing operations) Profit before tax attributable to members of the parent	A$'000 up 19% to 248,592 up n/a to 95,450 up n/a to 95,450
Dividends Final dividend Interim dividend Record date for determining entitlements to the dividend	security Amount per	per security Franked amount
	n/a	n/a
	n/a	n/a
	n/a

This half year report should be read in conjunction with the most recent annual financial report.

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Half Year Report for the six months ended 31 December 2015

Corporate Directory

Directors

Chairman PE Huston Chief Executive Officer JP Welborn Non-Executive Director MJ Botha Non-Executive Director HTS Price Non-Executive Director PR Sullivan

Secretary

GW Fitzgerald

Registered Office and Business Address

4th Floor, The BGC Centre 28 The Esplanade Perth, Western Australia 6000

Postal

PO Box 7232 Cloisters Square Perth, Western Australia 6850

Telephone: + 61 8 9261 6100 Facsimile: + 61 8 9322 7597 Email: contact@rml.com.au

ABN 39 097 088 689

Website

RML maintains a website where all major announcements to the ASX are available: www.rml.com.au

Share Registry

Security Transfer Registrars Pty Ltd 770 Canning Highway Applecross, Western Australia 6153 Telephone: + 61 8 9315 2333 Facsimile: + 61 8 9315 2233 Email: registrar@securitytransfer.com.au

Home Exchange

Australian Securities Exchange Limited Exchange Plaza, 2 The Esplanade Perth, Western Australia 6000

Quoted on the official lists of the Australian Securities Exchange

ASX Ordinary Share Code: “RSG” ASX Listed Convertible Notes Code: “RSGG”

Securities on Issue (31/12/2015)

Ordinary Shares Unlisted Options Performance Rights Convertible Notes

641,582,994 3,533,733 17,927,156 15,000,000

Auditor

Ernst & Young Ernst & Young Building 11 Mounts Bay Rd Perth, Western Australia 6000

Bankers

Barclays Bank Plc Level 42, 225 George Street Sydney, New South Wales 2000

Investec Bank Plc Level 23, The Chifley Tower 2 Chifley Square Sydney, NSW 2000

Citibank Limited Level 23, Citigroup Centre 2 Park Street Sydney, New South Wales 2000

Shareholders wishing to receive copies of Resolute’s ASX announcements by e-mail should register their interest by contacting the Company at contact@rml.com.au

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2

Half Year Report for the six months ended 31 December 2015

Table of Contents

Directors’ Report ............................................................................................................................................... 4 Auditors’ Independence Declaration ................................................................................................................. 8 Consolidated Statement of Comprehensive Income ......................................................................................... 9 Consolidated Statement of Financial Position ................................................................................................. 11 Consolidated Statement of Changes in Equity ................................................................................................ 13 Consolidated Cash Flow Statement ................................................................................................................ 15 Notes to the Financial Statements .................................................................................................................. 16 Directors’ Declaration ...................................................................................................................................... 28 Independent Auditor’s Review Report ............................................................................................................. 29

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3

Half Year Report for the six months ended 31 December 2015

Directors’ Report

Your directors present their half year report on the consolidated entity (referred to hereafter as the “Group” or “Resolute”) consisting of Resolute Mining Limited and the entities it controlled at the end of or during the half year ended 31 December 2015.

Corporate Information

Resolute Mining Limited ("RML" or “the Company”) is a company limited by shares that is incorporated and domiciled in Australia.

Directors

The names of the Company’s directors in office during the half year and until the date of this report are as follows. Directors were in office for this entire period.

PE Huston (Chairman)

JP Welborn (Chief Executive Officer)

MJ Botha (Non-Executive Director)

HTS Price (Non-Executive Director)

PR Sullivan (Non-Executive Director)

Company Secretary

GW Fitzgerald

Financial Position and Performance

• Cash and the market value of bullion on hand at 31 December 2015 increased to a total of $75m (June 2015: $54m).

• Debt net of cash/bullion improved from negative $64m at 30 June 2015 to negative $22m by the end of the half year.

• Gross profit of $67m (1H 2015: $29m).

• US$20m Gold Prepay Loan Facility settled in full with final gold instalment delivery in October 2015.

• Revenue from gold sales for the half year period up 19% to $249m (1H 2015: $209m), with higher gold production and sales combined with a higher gold selling price.

• Average cash price received on 158,540 ounces of gold sold (1H 2015: 150,546 ounces) was $1,561/oz (1H 2015: $1,401/oz).

• Net operating cash inflows for the half year were $70m (1H 2015: $20m), despite scheduled crusher and roaster maintenance work at Syama impacting performance.

• Net investing cash outflows of $21m (1H 2015: $39m).

• Net financing outflows of $28m (1H 2015: $6m inflows) included $28m of debt repayments following the agreement of an Accelerated Debt Restructure with the group’s Lending Syndicate, with the US$50m Cash Advance Facility to be repaid in full by 30 June 2016.

• Profit from discontinued operations of $45m includes the extinguishment of the net liabilities of the Tanzanian group of companies divested during the period ($3m), and that group’s accumulated foreign exchange gain recognised in equity up to the date of the sale ($42m).

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4

Half Year Report for the six months ended 31 December 2015

Directors’ Report (continued)

Review of Operations

Production

• Solid performance in the half year has allowed for accelerated debt reduction to strengthen the Company’s balance sheet.

• Major refurbishment of the Syama Roaster and improvements to the Syama Crushing Circuit completed during the December 2015 quarter.

• A continuous improvement and cost reduction program commenced at Syama with results expected to realise significant value in the second half of the 2016 calendar year.

• Production Guidance for FY2016 is maintained at 315,000 ounces at an average Cash Cost¹ of A$990 (US$725) per ounce and an All‐In‐Sustaining Cost² of A$1,280 (US$940) per ounce.

December 2015 YTD	Units	Ravenswood	Syama Sulphide	Syama Oxide	Total
UG lateral development - capital m 456 - - 456 UG lateral development - operating m 775 - - 775 Total UG lateral development m 1,231 - - 1,231 UG ore mined t 751,166 - - 751,166 UG grade mined g/t 2.34 - - 2.34 OP operating waste BCM - - 2,282,249 2,282,249 OP ore mined BCM - - 249,964 249,964 OP grade mined g/t - - 2.35 2.35 Total ore mined t 751,166 - 455,363 1,206,529
Total tonnes processed t 835,913 621,960 570,067 2,027,940 Grade processed g/t 2.27 3.33 2.62 2.69 Recovery % 94.4 76.6 90.9 88.0 Gold produced oz 58,462 51,061 43,668 153,191
Gold in circuit drawdown/(addition) oz 2,396 3,913 (1,011) 5,298 Gold shipped oz 60,858 54,974 42,657 158,489
Gold bullion in metal account (increase)/decrease oz (2,468) (674) 3,193 51 Gold sold oz 58,390 54,300 45,850 158,540
Achieved gold price A$/oz 1,561 1,561 1,561 1,561 US$/oz 1,131 1,131 1,131 1,131
Cost Summary Mining A$/oz 529 19 660 397 Processing A$/oz 295 611 346 415 Administration A$/oz 125 191 149 154 Stockpile Adjustments A$/oz 45 159 57 86 Amortisation/(Deferral) of stripping costs A$/oz - - (416) (119) Transfer of underground development costs to development A$/oz (61) (1) 0 (24)
Cash Cost A$/oz 934 978 795 909 US$/oz 590 708 574 625
Royalties A$/oz 78 84 115 98 By-product credits A$/oz (7) (2) (1) (4) Amortisation/(Deferral) of stripping costs A$/oz - - 416 119 Sustaining capital + others A$/oz 129 118 48 103 Overhead costs A$/oz 10 23 27 23
All-in Sustaining Cost A$/oz 1,143 1,201 1,401 1,247
US$/oz 827 871 1,012 902
Depreciation and amortisation A$/oz 261 75 29 137

1. Cash cost per ounce of gold produced is calculated as costs of production relating to gold sales excluding gold in circuit inventory movements divided by gold ounces produced.

2. All in Sustaining Costs (“AISC”) per ounce of gold produced is calculated in accordance with World Gold Council guidelines. These measures are included to assist investors to better understand the performance of the business. Cash cost per ounce of gold produced and AISC are non ‐ International Financial Reporting Standards financial information and where included in this Directors’ Report have not been subject to review by the Group’s external auditors.

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Half Year Report for the six months ended 31 December 2015

Directors’ Report (continued)

Review of Operations (continued)

Development

• Resolute’s primary development focus is the Syama Underground Project (Mali) which provides the opportunity to extend Syama’s mine life beyond 2028. During the half year the Syama Underground Feasibility Study program was expanded to include the Syama Grid Connection Project as part of a major focus to enhance the outcomes of the Definitive Feasibility Study (“DFS”). Opportunities identified through the Syama Continuous Improvement and Cost Reduction Program will also be incorporated into the expanded DFS.

• Work commenced during the half year included:

• A new program of deep diamond drilling to test likely extensions to the underground resource model;

• Infill drilling program within the Syama open pit, targeting the upper levels of the underground resource. Early results strongly support the existing geology interpretation with the potential for additional ore located beneath the completed open pit shell

  • Infill drilling results have been received for diamond holes testing upper levels of the proposed Syama underground development. Significant results included:

    •  SUDD012 43m @ 6.4g/t Au from 118m to End of Hole;

    •  SUDD011 70m @ 3.8g/t Au from 33m;

    •  SUDD015 36m @ 7.0g/t Au from 51m;

    •  SUDD014 79m @ 3.2g/t Au from 66m;

    •  SUDD018 72m @ 2.9g/t Au from 136m;

    •  SUDD021 48m @ 4.4g/t Au from 67m; and,

    •  SUDD007 17m @ 8.3g/t Au from 74m.

  • The infill results extend the mineralised footprint and provide confidence that the Syama underground reserve estimate can be enhanced in the upper levels of the proposed development.

  • Results have been received for the first hole of the resource extension drilling program and have confirmed the potential for significant future resource growth at Syama:

    •  SYRD428 32m @ 2.7g/t Au from 323m; and,

    •  13m @ 3.1g/t Au from 377m.

• installation of power and pumping infrastructure to allow early access for accelerated development; and,

• Revised geotechnical assessment and metallurgical test work programs.

As a result of the expanded and enhanced Feasibility Study Program, the Syama Underground DFS is now expected to be completed during the June 2016 Quarter.

• Strategic options continue to be assessed as part of the Ravenswood Extension Project (Queensland) with a focus on the Nolans East, Buck Reef West and Sarsfield open pit deposits.

• A strategic review of the Bibiani Gold Project (Ghana) was commenced with an immediate focus on reducing Care and Maintenance costs. These costs are expected to reduce by approximately 40% by the end of the current quarter. The Feasibility Study remains on target for completion during the June 2016 quarter.

Exploration

• ’

• • In Cote d Ivoire, soil sampling on the Joint Venture research permit Tiebissou has outlined a strong and coherent Au‐As‐Sb anomaly which will be drill tested this financial year.

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6

Half Year Report for the six months ended 31 December 2015

Directors’ Report (continued)

Significant Events After Balance Date

No significant events have occurred since balance date on 31 December 2015 and the date of this Directors’ Report.

Auditor’s Independence

Refer to page 8 for a copy of the Auditor’s Independence Declaration to the Directors of Resolute Mining Limited.

Rounding

RML is a Company of the kind specified in Australian Securities and Investments Commission Class Order 98/0100. In accordance with that class order, amounts in the financial report and the Directors' Report have been rounded to the nearest thousand dollars unless specifically stated to be otherwise.

Signed in accordance with a resolution of the directors.

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John Welborn Director

Perth, Western Australia 26 February 2016

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7

Half Year Report

for the six months ended 31 December 2015

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8

Half Year Report for the six months ended 31 December 2015

Consolidated Statement of Comprehensive Income

	For the half For the half year ended year ended 31-Dec-15 31-Dec-14 $'000 $'000
Continuing Operations
Revenue from gold and silver sales 4(a) Costs of production relating to gold sales 4(b)	248,592 208,599 (144,358) (133,854)
Gross profit before depreciation, amortisation and other operating costs	104,234 74,745
Depreciation and amortisation relating to gold sales 4(c)	(21,004) (32,820)
Other operating costs relating to gold sales 4(d) Gross profit	(16,117) (13,001)
	67,113 28,924
Other income 4(e) Other expenses 4(f) Exploration and business development expenditure Administration and other corporate expenses 4(g) Treasury - realised (losses)/gains 4(h) Fair value movements and unrealised treasury transactions 4(i) Asset impairment expenses 4(j) Profit/(loss) before interest and tax	64 12,083 (5,798) - (4,572) (3,596) (2,401) (3,201) (6,282) 116 18,356 (29,305) - (321,717)
	66,480 (316,696)
Finance costs 4(k) Profit/(loss) before tax from continuing operations Tax benefit Profit/(loss) for the period from continuing operations Discontinued Operation Profit/(loss) after tax for the discontinued operation 5 Profit/(loss) for the period Profit/(loss) attributable to: Members of the parent	(4,303) (4,611)
	62,177 (321,307) - 6
	62,177 (321,301)
	44,722 (2,495)
	106,899 (323,796)
	95,450 (265,875)
Non-controlling interest	11,449 (57,921)
	106,899 (323,796)

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9

Half Year Report for the six months ended 31 December 2015

Consolidated Statement of Comprehensive Income (continued)

	For the half For the half year ended year ended 31-Dec-15 31-Dec-14 $'000 $'000
Profit/(loss) for the period (brought forward) Other comprehensive income/(loss) Items that may be reclassified subsequently to profit or loss Exchange differences on translation of foreign operations: - Members of the parent - Transferred to profit and loss - disposed subsidiaries Changes in the fair value/realisation of available for sale financial assets, net of tax Items that may not be reclassified subsequently to profit or loss Exchange differences on translation of foreign operations:	106,899 (323,796)
	181 39,732 (42,488) - (57) (11,918)
- Non-controlling interest	(2,639) (804)
Other comprehensive (loss)/income for the period, net of tax Total comprehensive income/(loss) for the period Total comprehensive income/(loss) attributable to: Members of the parent Non-controlling interest
	(45,003) 27,010
	61,896 (296,786)
	53,086 (238,061) 8,810 (58,725)
	61,896 (296,786)
Earnings/(loss) per share for net profit/(loss) attributable to the ordinary equity holders of the parent: Basic earnings/(loss) per share Diluted earnings/(loss) per share Earnings/(loss) per share for net profit/(loss) from continuing operations attributable to the ordinary equity holders of the parent: Basic earnings/(loss) per share Diluted earnings/(loss) per share	CENTS CENTS 14.88 (41.47) 14.50 (41.47) 7.91 (41.08) 7.71 (41.08)

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10

Half Year Report for the six months ended 31 December 2015

Consolidated Statement of Financial Position

Note	As at As at 31-Dec-15 30-Jun-15 $'000 $'000
Current assets
Cash and cash equivalents Receivables Inventories Available for sale financial assets	33,289 9,885 7,841 11,451 188,415 194,606 57 114
Other current assets Total current assets Non current assets Receivables Other financial assets Exploration and evaluation expenditure Development expenditure Property, plant and equipment Total non current assets Total assets Current liabilities Payables Interest bearing liabilities 7 Provisions Unearned revenue Total current liabilities Non current liabilities Interest bearing liabilities 7 Provisions Total non current liabilities Total liabilities Net assets	3,649 3,535
	233,251 219,591
	- 558 3,761 3,584 40,379 33,951 105,969 90,469 66,690 66,318
	216,799 194,880
	450,050 414,471
	33,153 36,485 82,929 99,430 25,815 32,151 - 3,307
	141,897 171,373
	14,258 14,286 65,867 63,586
	80,125 77,872
	222,022 249,245
	228,028 165,226

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11

Half Year Report for the six months ended 31 December 2015

Consolidated Statement of Financial Position (continued)

Note	As at As at 31-Dec-15 30-Jun-15 $'000 $'000
Equity attributable to equity holders of the parent Contributed equity 8 Reserves Accumulated losses	380,305 380,305 31,568 73,026 (118,343) (213,793)
Total equity attributable to equity holders of the parent Non-controlling interest Total equity	293,530 239,538
	(65,502) (74,312)
	228,028 165,226

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12

Half Year Report for the six months ended 31 December 2015

Consolidated Statement of Changes in Equity

At 1 July 2015 Profit for the period Other comprehensive loss, net of tax Total comprehensive (loss)/income for the period, net of tax Share-based payments to employees At 31 December 2015	Contributed equity Net unrealised gain/(loss) reserve Convertible notes equity reserve Share options equity reserve Employee equity benefits reserve Foreign currency translation reserve Retained earnings Non-controlling interest Total $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000
	380,305 (127) 384 5,987 10,507 56,275 (213,793) (74,312) 165,226
	- - - - - - 95,450 11,449 106,899 - (57) - - - (42,307) - (2,639) (45,003)
	- (57) - - - (42,307) 95,450 8,810 61,896
	- - - - 906 - - - 906
	380,305 (184) 384 5,987 11,413 13,968 (118,343) (65,502) 228,028

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13

Half Year Report for the six months ended 31 December 2015

Consolidated Statement of Changes in Equity (continued)

At 1 July 2014 Loss for the period Other comprehensive (loss)/income, net of tax Total comprehensive (loss)/income for the period, net of tax Equity portion of compound financial instruments, net of tax and transaction costs Share-based payments to employees At 31 December 2014	Contributed equity Net unrealised gain/(loss) reserve Convertible notes equity reserve Share options equity reserve Employee equity benefits reserve Foreign currency translation reserve Retained earnings Non-controlling interest Total $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000
	380,305 11,488 - 5,987 7,695 14,914 292,049 (13,133) 699,305
	- - - - - - (265,875) (57,921) (323,796) - (11,918) - - - 39,732 - (804) 27,010
	- (11,918) - - - 39,732 (265,875) (58,725) (296,786)
	- - 568 - - - - - 568 - - - - 1,422 - - - 1,422
	380,305 (430) 568 5,987 9,117 54,646 26,174 (71,858) 404,509

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14

Half Year Report for the six months ended 31 December 2015

Consolidated Cash Flow Statement

Consolidated Cash Flow Statement	Consolidated Cash Flow Statement
Consolidated
For the half- For the half- year ended year ended 31-Dec-15 31-Dec-14
	$'000 $'000
Cash flows from operating activities Receipts from customers Payments to suppliers, employees and others Exploration expenditure Interest paid Interest received Income tax paid Net cash flows from operating activities Cash flows used in investing activities Payments for property, plant & equipment Proceeds from sale of available for sale financial assets Payments for development activities Payments for evaluation activities Proceeds from sale of property, plant & equipment Proceeds from sale of other assets Other investing activities Net cash flows used in investing activities Cash flows from financing activities Repayment of borrowings Repayment of lease liability Proceeds from finance facilities Net cash flows (used in)/from financing activities Net increase/(decrease) in cash and cash equivalents Cash and cash equivalents at the beginning of the financial year Exchange rate adjustment Cash and cash equivalents at the end of the period Cash and cash equivalents comprise the following: Cash at bank and on hand Bank overdraft	248,592 211,684 (169,655) (184,234) (5,061) (4,452) (3,411) (2,732) 22 17 - (331)
	70,487 19,952
	(8,789) (3,914) 14 24,134 (7,971) (41,492) (5,392) (22,384) 2,654 2,321 - 3,087 (1,319) (786)
	(20,803) (39,034)
	(25,365) (5,263) (2,522) (3,278) - 14,456
	(27,887) 5,915
	21,797 (13,167) (19,735) (7,344) (1,483) (675)
	579 (21,186)
	33,289 13,186 (32,710) (34,372)
	579 (21,186)

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15

Half Year Report for the six months ended 31 December 2015

Notes to the Financial Statements

Note 1: Corporate Information

The financial report of Resolute Mining Limited and its controlled entities (“Resolute”, the “Group” or “consolidated entity”) for the half year ended 31 December 2015 was authorised for issue in accordance with a resolution of directors on 25 February 2016.

Resolute Mining Limited (the parent) is a for profit company limited by shares incorporated and domiciled in Australia whose shares are publicly traded on the Australian Securities Exchange.

The principal activities of entities within the consolidated entity during the half year were:

• Gold mining; and,

• prospecting and exploration for minerals.

There has been no significant change in the nature of those activities during the half year.

Note 2: Basis of Preparation and Summary of Significant Accounting Practices

This interim financial report for the half year ended 31 December 2015 has been prepared in accordance with AASB 134 Interim Financial Reporting and the Corporations Act 2001 .

The half year financial report does not include all notes of the type normally included within the annual financial report and therefore cannot be expected to provide as full an understanding of the financial performance, financial position and financing and investing activities of the Group as the full financial report.

It is recommended that the half year financial report be read in conjunction with the Annual Report for the year ended 30 June 2015 and considered together with any public announcements made by Resolute Mining Limited during the half year ended 31 December 2015 in accordance with the continuous disclosure obligations of the Australian Securities Exchange listing rules.

The accounting policies and methods of computation are the same as those adopted in the most recent annual financial report.

Significant accounting judgements

The determination of gold reserves and resource impacts the accounting for asset carrying values, depreciation and amortisation rates, deferred stripping costs and provisions for decommissioning and restoration. In line with the Group’s usual practice as occurs twice yearly, the Group has applied the effects of updated life of mine modelling to this reporting period, effective from 1 July 2015.

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16

Half Year Report for the six months ended 31 December 2015

Notes to the Financial Statements

Note 3: Operating Segments

Note 3: Operating Segments
For the six months ended 31 December 2015 Revenue Gold and silver sales at spot to external customers (a) Total segment gold and silver sales revenue Cash costs Other operating costs (including gold in circuit movement) Other corporate/admin costs Exploration and business development expenditure Earnings/(loss) before interest, tax, depreciation and amortisation Depreciation and amortisation Segment operating result before treasury, other income/(expenses) and tax Other income Other expenses Finance costs Fair value movements and unrealised treasury transactions Segment operating result before treasury and tax Profit for the period from discontinued operation, net of tax Treasury - realised losses Treasury - unrealised gains Profit/(loss) for the period	RAVENSWOOD SYAMA BIBIANI CORP/OTHER TREASURY TOTAL (AUSTRALIA) (MALI) (GHANA) $'000 $'000 $'000 $'000 $'000 $'000 91,287 155,980 - - 1,325 248,592 UNALLOCATED (b)
	91,287 155,980 - - 1,325 248,592 (54,593) (84,634) - - - (139,227) (5,099) (16,835) - (1,077) - (23,011) (21) - - (617) - (638) (1,637) (210) (1,089) (1,636) - (4,572)
	29,937 54,301 (1,089) (3,330) 1,325 81,144 (15,285) (5,719) - - - (21,004)
	14,652 48,582 (1,089) (3,330) 1,325 60,140 14 - - 50 - 64 - (5,734) - (64) - (5,798) - - - - (4,303) (4,303) (499) 6,728 - - - 6,229
	14,167 49,576 (1,089) (3,344) (2,978) 56,332 - - - 44,722 - 44,722 - - - - (6,282) (6,282) - - - - 12,127 12,127
	14,167 49,576 (1,089) 41,378 2,867 106,899

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17

Half Year Report for the six months ended 31 December 2015

Notes to the Financial Statements

Note 3: Operating Segments (continued)

Note 3: Operating Segments (continued)
For the six months ended 31 December 2015	RAVENSWOOD SYAMA BIBIANI CORP/OTHER TREASURY TOTAL (AUSTRALIA) (MALI) (GHANA) $'000 $'000 $'000 $'000 $'000 $'000 UNALLOCATED (b)
Cash flow by segment, including gold bullion, and gold shipped but unsold and held in metal accounts Reconciliation of cash flow by segment to the cash flow statement: Movement in gold shipped but unsold and held in metal accounts Mark to market movement in gold unsold Movement in bank overdraft, including foreign exchange movements Exchange rate adjustment in cash on hand Cash flows from discontinued operation Movement in cash and cash equivalents per consolidated cash flow statement	31,604 29,994 (6,923) (3,856) (26,689) 24,130 1,429 858 (3,090) 844 (2,374) 21,797
		21,797
Capital expenditure	4,822 14,191 5,107 36 -	24,156
Segment assets Segment liabilities	84,714 272,463 60,433 32,440 -	450,050
	44,909 88,469 16,549 9,879 62,216	222,022

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18

Half Year Report for the six months ended 31 December 2015

Notes to the Financial Statements

Note 3: Operating Segments (continued)

Note 3: Operating Segments (continued)
For the six months ended 31 December 2014 Revenue Gold and silver sales at spot to external customers (a) Total segment gold and silver sales revenue Cash costs Other operating costs (including gold in circuit movement) Other corporate/admin costs Exploration and business development expenditure Earnings/(loss) before interest, tax, depreciation and amortisation Depreciation and amortisation Segment operating result before treasury, other income/(expenses) and tax Other income Finance costs Asset impairment expenses and inventory net realisable value movements Segment operating result before treasury and tax Loss for the period from discontinued operation, net of tax Treasury - realised gains Treasury - unrealised losses Tax benefit/(expense) Profit/(loss) for the period	RAVENSWOOD SYAMA BIBIANI CORP/OTHER TREASURY TOTAL (AUSTRALIA) (MALI) (GHANA) $'000 $'000 $'000 $'000 $'000 $'000 76,837 130,331 - 1,431 - 208,599 UNALLOCATED (b)
	76,837 130,331 - 1,431 - 208,599 (47,761) (75,614) - - - (123,375) (9,264) (16,044) - - - (25,308) (35) - - (1,338) - (1,373) (1,107) (584) - (1,905) - (3,596)
	18,670 38,089 - (1,812) - 54,947 (15,551) (17,269) - - - (32,820)
	3,119 20,820 - (1,812) - 22,127 56 - - - 12,027 12,083 - - - - (4,611) (4,611) 263 (310,355) (17,464) - - (327,556)
	3,438 (289,535) (17,464) (1,812) 7,416 (297,957) - - - (2,495) - (2,495) - - - - 116 116 - - - - (23,466) (23,466) - - 100 (94) - 6
	3,438 (289,535) (17,364) (4,401) (15,934) (323,796)

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19

Half Year Report for the six months ended 31 December 2015

Notes to the Financial Statements

Note 3: Operating Segments (continued)

Note 3: Operating Segments (continued)
For the six months ended 31 December 2014	RAVENSWOOD SYAMA BIBIANI CORP/OTHER TREASURY TOTAL (AUSTRALIA) (MALI) (GHANA) $'000 $'000 $'000 $'000 $'000 $'000 UNALLOCATED (b)
Cash flow by segment, including gold bullion, and gold shipped but unsold and held in metal accounts	13,087 (33,413) (25,673) (488) 39,166	(7,321)
Reconciliation of cash flow by segment to the cash flow statement: Movement in gold shipped but unsold and held in metal accounts		17,066
Mark to market movement in gold unsold		(180)
Movement in bank overdraft, including foreign exchange movements Exchange rate adjustment in cash on hand Cash flows from discontinued operation Movement in cash and cash equivalents per consolidated cash flow statement		(8,482) 468 (14,718)
		(13,167)
Capital expenditure	5,544 38,595 9,981 22 -	54,142
Segment assets in continuing operations Segment assets in discontinued operation	101,312 417,469 100,269 26,999 - - - - 12,349 -	646,049 12,349
Total segment assets	101,312 417,469 100,269 39,348 -	658,398
Segment liabilities in continuing operations Segment liabilities in discontinued operation Total segment liabilities	51,928 84,971 19,793 75,548 15,381 - - - 6,268 -	247,621 6,268
	51,928 84,971 19,793 81,816 15,381	253,889

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20

Half Year Report for the six months ended 31 December 2015

Notes to the Financial Statements

Note 3: Operating Segments (continued)

• (a) Revenue from external sales for each reportable segment is derived from several customers.

• (b) This information does not represent an operating segment as defined by AASB 8, however this information is analysed in this format by the Chief Operating Decision Maker, and forms part of the reconciliation of the results and positions of the operating segments to the financial statements.

Note 4: Profit/(Loss) from Continuing Operations

(a) Revenue from gold and silver sales Gold and silver sales (b) Costs of production relating to gold sales Costs of production (excluding gold in circuit inventories movement) Gold in circuit inventories movement (c) Depreciation and amortisation relating to gold sales Amortisation of evaluation, development and rehabilitation costs Depreciation of mine site properties, plant and equipment (d) Other operating costs relating to gold sales Royalty expense Operational support costs (e) Other income Profit on sale of property, plant and equipment Profit on sale of available for sale financial assets Interest income Dividend income Other	For the half For the half year ended year ended 31-Dec-15 31-Dec-14 $'000 $'000 248,592 208,599 Consolidated
	139,227 123,375 5,131 10,479
	144,358 133,854
	10,212 17,843 10,792 14,977
	21,004 32,820
	14,953 12,491 1,164 510
	16,117 13,001
	1 45 - 11,921 22 17 - 64 41 36
	64 12,083

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21

Half Year Report for the six months ended 31 December 2015

Notes to the Financial Statements

Note 4: Profit/(Loss) from Continuing Operations (continued)

Note 4: Profit/(Loss) from Continuing Operations (continued)
	For the half For the half year ended year ended 31-Dec-15 31-Dec-14 $'000 $'000 Consolidated
(f) Other expenses Withholding tax	5,798 -
(g) Administration and other corporate expenses Other management and administration expenses Share based payments expense Depreciation of non mine site assets	1,643 2,358 711 791 47 52
	2,401 3,201
(h) Treasury - realised (losses)/gains Realised foreign exchange (loss)/gain Realised loss on repayment of gold prepay loan (i) Fair value movements and unrealised treasury losses Inventories net realisable value movements and obsolete consumables (i) Unrealised foreign exchange gain/(loss)	(5,769) 235 (513) (119)
	(6,282) 116
	5,700 (5,839) 3,100 (8,329)
Unrealised foreign exchange gain/(loss) on intercompany balances	9,027 (13,644)
Unrealised loss on financial derivative assets Other Total fair value movements and unrealised treasury transactions	- (1,493) 529 -
	18,356 (29,305)

(i) These amounts predominantly relate to ore stockpile and gold in circuit inventory net realisable value movements. The changing gold price impacts the market value of the gold inventories held by Resolute. Hence, non-cash movements are recorded against the ore stockpile and gold in circuit inventory values. These inventories are recorded on the Statement of Financial Position at the lower of cost and net realisable value.

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22

Half Year Report for the six months ended 31 December 2015

Notes to the Financial Statements

Note 4: Profit/(Loss) from Continuing Operations (continued)

Note 4: Profit/(Loss) from Continuing Operations (continued)
	For the half For the half year ended year ended 31-Dec-15 31-Dec-14 $'000 $'000 Consolidated
(j) Asset impairment expenses Impairment of property, plant and equipment Impairment of exploration, evaluation and development Impairment of gold equity investments Impairment of deferred mining (ii) Total asset impairment expenses	- (70,330) - (251,387) - - - -
	- (321,717)
(k) Finance costs Interest and fees Rehabilitation and restoration provision accretion	3,749 3,970 554 641
	4,303 4,611

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23

Half Year Report for the six months ended 31 December 2015

Notes to the Financial Statements

Note 5: Discontinued Operation

On 12 December 2014, the formal handover of the Golden Pride site and all remaining infrastructure to the Madini Institute to set up a mining institute of learning was completed, as agreed with the Government of Tanzania. This ended Resolute’s presence on site at Golden Pride after 15 years and production of over 2.2 million ounces of gold. This arm of the business, previously represented as the Golden Pride operating segment, has been classified as a discontinued operation and is no longer presented as a segment in Note 3.

In October 2015, Resolute completed the divestment of Resolute Pty Ltd, the company holding all of Resolute’s subsidiaries, assets, liabilities, contingent liabilities, and mineral rights in Tanzania (the “RPL group”). Resolute entered into an agreement with Cienega S.A.R.L. whereby Cienega S.A.R.L. acquired the RPL group for nominal initial consideration, with a potential deferred consideration equal to 50% of the proceeds of the sale of any mineral rights, related physical assets, and other specific legal actions.

The results for the period are presented below:

Revenue Expenses Gain on sale of the Resolute Pty Ltd group (i) Accounts receivable impairment expenses and inventory net realisable value movements Profit/(loss) before tax from a discontinued operation Tax benefit Profit/(loss) for the period from a discontinued operation Earnings/(loss) per share: Basic earnings/(loss) per share of discontinued operation Diluted earnings/(loss) per share of discontinued operation The net cash flows of the discontinued operation are as follows: Operating cash flows Net cash outflow	For the half For the half year ended year ended 31-Dec-15 31-Dec-14 $'000 $'000 - 3,085 (1,381) (5,826) 46,103 - - (811)
	44,722 (3,552) - 1,057
	44,722 (2,495)
	6.97 cents (0.39) cents 6.79 cents (0.39) cents (2,374) (14,718)
	(2,374) (14,718)

(i) The net liabilities of the RPL Group sold for nil consideration totalled $3.615 million. Additionally, the RPL Group’s accumulated foreign exchange gain recognised in equity was A$42.488m and has now been recycled to profit and loss.

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24

Half Year Report for the six months ended 31 December 2015

Notes to the Financial Statements

Note 6: Dividends

There were no dividends paid or provided for during the half year end up to the date of this report (half year ended 31 December 2014: Nil).

Note 7: Interest Bearing Liabilities

The Group entered into an agreement to accelerate the repayment of its senior secured US$50m Cash Advance Facility with Barclays Bank Plc and Investec Bank Plc which was originally due to expire on 28 February 2016. Under the new repayment arrangements, Resolute volunteered to make monthly repayments of US$5m, starting on 1 October 2015, as part of a new amortisation schedule which will see the Cash Advance Facility entirely repaid as at 30 June 2016. As a result of the restructured repayment schedule the maturity date of the Cash Advance Facility and the Bonding Facilities have been extended and aligned to 30 June 2016.

Note 8: Contributed Equity

Ordinary securities As at 1 July 2015 Changes during current period, net of issue costs Increase through issue of shares to Level 1 employees As at 31 December 2015 Options on issue As at 31 December 2015 Changes during current period Lapsing of unlisted options Lapsing of unlisted options	Total Number 2,000,000 756,333 130,000 647,400	Total Number $'000 Number Quoted 641,189,223 641,189,223 380,305 393,771 393,771 -
		641,582,994 641,582,994 380,305
	3,533,733

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25

Half Year Report for the six months ended 31 December 2015

Notes to the Financial Statements

Note 8: Contributed Equity (continued)

Issue Date Performance rights on issue Level 1 1/07/2013 Level 1 1/07/2014 Level 2 27/08/2014 Level 1 1/07/2015 Level 2 28/08/2015 As at 31 December 2015 Changes during current period Increase through issue of performance rights to eligible employees (Level 1) Increase through issue of performance rights to eligible employees (Level 2) Decrease through conversion of shares upon vesting of performance rights (Level 1) Decrease through lapsing of performance rights (Level 1) Decrease through lapsing of performance rights (Level 2)*

Fair Value Total per Right Number Exercise Vesting Number at Grant Date Quoted Price Date 3,176,743 $0.43 - - 30/06/2016 2,385,834 $0.50 - - 30/06/2017 1,519,282 $0.56 - - 30/06/2016 5,588,771 $0.25 - - 30/06/2018 5,256,526 $0.25 - - 30/06/2017 17,927,156 $0.35 5,588,771 $0.25 - - 30/06/2018 5,838,967 $0.25 - - 30/06/2017 (393,771) $1.46 - - 30/06/2015 (1,193,207) $1.46 - - 30/06/2015 (582,441) $0.25 - - 30/06/2017

*The terms and conditions of the Remuneration Framework are consistent with those disclosed in the Annual Report for the year ended 30 June 2015.

	Total	Number	Conversion	Expiry
	Number	Quoted	Price	Date
Convertible notes on issue
As at 31 December 2015	15,000,000	15,000,000	$1.00	12/12/2017

Note 9: Net Tangible Assets

Note 9: Net Tangible Assets
	As at	As at
	31-Dec-15	30-Jun-15
	$'000	$'000
Net tangible assets per share ($)	0.36	0.26

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26

Half Year Report for the six months ended 31 December 2015

Notes to the Financial Statements

Note 10: Contingent Liabilities

Certain claims arising with third parties have been made by or against certain Group entities in the ordinary course of business, some of which involve litigation or arbitration. The directors do not consider the outcome of any of these claims will have a material adverse impact on the financial position of the Group.

As a result of the divestment of the Tanzanian entities from the Group (refer Note 5), the contingent liabilities previously disclosed in the last full year financial report with respect to Tanzanian Tax Authorities have now been extinguished.

Note 11: Events Occurring after Balance Date

No significant events have occurred since balance date on 31 December 2015 and the date of this report.

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Half Year Report for the six months ended 31 December 2015

Directors’ Declaration

In the opinion of the directors:

• a) the financial statements and notes are in accordance with the Corporations Act 2001, including:

• (i) complying with Accounting Standard AASB 134 Interim Financial Reporting, the Corporations Regulations 2001; and

• (ii) giving a true and fair view of the Group’s financial position as at 31 December 2015 and of its performance, as required by Accounting Standards, for the half year ended on that date.

• b) there are reasonable grounds to believe that the Group will be able to pay its debts as and when they become due and payable.

This declaration has been made in accordance with a resolution of the directors.

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John Welborn Director

Perth, Western Australia 26 February 2016

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Half Year Report

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Half Year Report

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