Resolute Mining Limited — Interim / Quarterly Report 2022

Aug 24, 2022

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This presentation contains information about Resolute Mining Limited (Resolute or the Company) and its activities that is current as at the date of this presentation unless otherwise stated. The information in this presentation remains subject to change without notice. This presentation has been prepared by Resolute and no party other than Resolute has authorised or caused the issue, lodgement, submission, despatch or provision of this presentation.

The information in this presentation is general in nature and does not purport to be complete. This presentation is not a prospectus, disclosure document or other offering document under Australian law or under the laws of any other jurisdiction. This presentation is provided for information purposes and does not constitute an offer, invitation , inducement or recommendation to subscribe for or purchase securities in Resolute in any jurisdiction.

The information contained in this presentation has been prepared in good faith by Resolute, however no guarantee, representation or warranty expressed or implied is or will be made by any person (including Resolute and its affiliates and their directors, officers, employees, associates, advisers and agents) as to the accuracy, reliability, correctness, completeness or adequacy of any statements, estimates, options, conclusions or other information contained in this presentation.

To the maximum extent permitted by law, Resolute and its affiliates and their directors, officers, employees, associates, advisers and agents each expressly disclaims any and all liability, including, without limitation, any liability arising out of fault or negligence, for any loss or damage suffered by any person relating in any way to the use of or reliance on information contained in this presentation including, without limitation:

• from representations or warranties or in relation to the accuracy or completeness of the information contained within this presentation;

• from statements, opinions, forecasts, reports or other matters, express or implied, contained in, arising out of or derived from this presentation; or

• for omissions from this presentation including, without limitation, any financial information, any estimates, forecasts, or projections and any other financial information derived therefrom.

This presentation does not constitute financial product advice, investment, legal, taxation or other advice and is not intended to be used or relied upon as the basis for making an investment decision. This presentation is not a recommendation to acquire Resolute securities and has been prepared without taking into account the investment objectives, taxation situation, financial situation or needs of individuals.

Before making any investment decision in connection with any acquisition of Resolute securities, prospective investors should consider the appropriateness of the information having regard to their own objectives, tax situation, financial situation and needs and seek financial, legal and taxation advice appropriate to their jurisdiction.

Past performance information given in this presentation is for illustrative purposes only and should not be relied upon as an indication of future performance. This presentation includes certain forward-looking statements, including statements regarding our intent, belief or current expectations with respect to Resolute’s business and operations, market conditions, results of operations and financial condition, and riskmanagement practices. Words such as ‘project’, ‘foresee’, ‘plan’, ‘expect’, ‘aim’, ‘intend’, ‘anticipate’, ‘believe’, ‘estimate’, ‘may’, ‘should’, ‘will’ and similar expressions are intended to identify forward-looking statements. Indications of, and guidance on, future earnings and financial position and performance are also forward-looking statements.

Forward-looking statements are provided as a general guide only and should not be relied upon as an indication or guarantee of future performance. These statements are based upon a number of estimates and assumptions that, while considered reasonable by Resolute, are inherently subject to significant uncertainties and contingencies, many of which are outside the control of Resolute, involve known and unknown risks and uncertainties that could cause actual events or results to differ materially from estimated or anticipated events or results reflected in such forward looking statements on certain assumptions, which may prove to be incorrect. Actual results, performance, actions and developments of Resolute may differ materially from those expressed or implied by the forwardlooking statements in this presentation.

As an Australian company listed on the Australian Securities Exchange (ASX), Resolute is required to report Ore Reserves and Mineral Resources in Australia in accordance with the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (JORC Code). Recipients should note that while Resolute’s Mineral Resource and Ore Reserve estimates comply with the JORC Code, they may not comply with relevant guidelines in other countries.

For details of the Mineral Resources and Ore Reserves used in this presentation, please refer to ASX Announcements dated 4 March 2022 titled “Ore Reserve and Mineral Resource Statement” and 4 March 2022 titled “Life of Mine Production Update”.

The Company is not aware of any new information or data that materially affects the Mineral Resources and Ore Reserves as reported in those ASX

Announcements and confirms that all material assumptions and technical parameters underpinning the estimates in those ASX Announcements continue to apply and have not materially changed. The form and context in which the Competent Persons’ findings are presented have not been materially modified from those ASX Announcements.

All in Sustaining Cost (AISC) per ounce of gold produced are 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.

An investment in Resolute is subject to known and unknown risks, some of which are beyond the control of Resolute, including possible loss of income and principal invested. Resolute does not guarantee any particular rate of return or the performance of Resolute, nor does it guarantee any particular tax treatment. Investors should have regard (amongst other things) to the risk factors outlined in this Presentation when making their investment decision. See the “Key Risks" section of this presentation for certain risks relating to an investment in Resolute.

This presentation includes pro-forma financial information which is provided for illustrative purposes only and is not represented as being indicative of Resolute (or anyone else's) views on Resolute's future financial position or performance.

A number of figures, amounts, percentages, estimates, calculations of value and fractions in this presentation are subject to the effect of rounding. Accordingly, the actual calculation of these figures may differ from the figures set out in this presentation.

Resolute’s production guidance for 2022 is 345,000oz at $1,425/oz. Resolute does however continue to assess developments and update the Company’s response to COVID19 while placing the highest priority on the safety and wellbeing of its employees, contractors and stakeholders.

Further escalation of COVID-19 (including its variant forms), and the implementation of further government-regulated restrictions or extended periods of supply chain disruption, has the potential to negatively impact gold production, earnings, cash flow and the Company’s balance sheet.

All dollar values are in United States dollars ($) unless otherwise stated.

This presentation has been authorised for release by Managing Director and Chief Executive Officer, Mr. Terry Holohan.

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Disclaimer

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H1 2022 Highlights

• TRIFR of 0.89 the lowest for 12 months

• Gold poured of 170,903oz, a 5% increase on H1 2021

• AISC of $1,463/oz - a 15% increase from H1 2021 reflecting higher fuel and consumable prices and adverse non-cash adjustments

• Revenue of $317.7m from gold sales of 173,717oz; average realised price: $1,824/oz

• Earnings before interest, tax, depreciation, and amortisation (EBITDA) of $78.5m

• Net loss after tax of $24.1m with an underlying net profit after tax of $3.6m

• Net debt at 30 June 2022 of $182.8m with cash and bullion of $81.8m

• Successful extension of the Revolving Credit Facility for 12 months to March 2024

• Highly promising Syama North drilling results potential for new open pit Sulphide operation close to the processing infrastructure

• Full year 2022 guidance maintained at 345,000oz at an AISC of $1,425/oz

• ECOWAS sanctions on Mali lifted 3 July 2022

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Total Gold Production 170,903oz

Total Gold Sold 173,717oz

All-In Sustaining Cost $1,463/oz

Average Price Received $1,824/oz

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Multi asset Multi asset production base production base

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Oz Chart Title AISC $/oz
180,000 1,600
160,000 1,400
140,000
84,068 67,224 1,200
63,506
63,111
120,000
1,000
100,000
30,454 800
28,932
80,000 28,104
34,181
600
60,000
400
40,000
70,680 73,225
64,938
58,942
20,000 200
- -
H2 2020 H1 2021 H2 2021 H1 2022
Syama Sulphide Syama Oxide Mako AISC
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H1 2022 reflects:

• 4% increase in Syama Sulphide production from H1 2021 following planned plant shutdown in H1 2022

• Syama Oxide production increased 5% from H1 2021

• Mako production increased 6% from H1 2021

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Earnings analysis

Profit and Loss Analysis ($'000s)	H1 2022	H1 2021
Revenue	317,658	261,311
Cost of sales excluding depreciation and amortisation	(193,116)	(132,689)
Royalties and other operating expenses	(30,030)	(30,173)
Administration and other corporate expenses	(7,853)	(9,035)
Exploration and business development expenditure	(8,187)	(11,694)
EBITDA	78,472	77,720
Depreciation and amortisation	(43,566)	(60,626)
Net interest and finance costs	(5,725)	(7,222)
Fair value movements and unrealised treasury transactions	(35,440)	(26,282)
Other	3,702	(2,281)
Impairment expense	-	(172,460)
Indirect tax expense	(5,451)	(13,101)
Abnormal items:
+ Fair value movements on loans	23,261	1,715
+ Historical tax adjustments	4,505	-
+ Impairment expense	-	172,460
Underlying net profit/(loss) before tax	19,758	(30,077)
Income tax expense	(16,138)	(15,538)
Underlying net profit/(loss) after tax	3,620	(45,615)
-Add back of abnormal adjustments	(27,766)	(174,175)
Reported net loss after tax	(24,146)	(219,790)

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Revenue

• Gold sales of 173.7koz, at an average price of $1,824/oz (H1 2021: 151.5koz, $1,723/oz).

• • Higher ounces sold reflect:

• Improved performance for Mako and Syama oxide compared to H1 2021

• o Drawdown of 9,693oz from Syama circuit during the half year o Drawdown of 2,604oz bullion on hand (compared to H1 2021 build of 11,615oz)

Cost of sales

• The increase in cost of sales reflects:

• Cost of sales for drawdown of gold in circuit and bullion on hand noted above

• o Change in accounting treatment of mineralised waste costs between periods o Higher fuel and consumable costs in light of the inflationary environment o Increase in Syama Oxide material movement

• Provision for disputed custom duties included in costs of sales

Abnormal non-cash items for H1 2022

• Foreign exchange revaluation of loan accounts $23.3m

• • Write-down of Historical tax asset of $4.5m

Indirect tax expense

• $4.5m of historical tax claims

• $1.0m withholding taxes paid in H1 2022

Income tax expense

• $8.6m of income tax amounts in dispute

• $2.7m of historical income tax claims

• $2.1m Mali income tax offset against VAT receivable

• $3.9m of withholding tax on Mako dividend payments

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Cash Flow Analysis

• Operating Cash flows include $10.3m of royalties, $15.3m of VAT and taxes, and movements in Bullion

• Asset sale proceeds of $30m from the Bibiani sale; and $18.2m from the sale of Orca Gold Inc and Turaco Gold Ltd shares

• $25m Term Loan repayment and $30m voluntary payment on the Revolving Credit Facility (RCF), reducing borrowing costs

• Government dividend & withholding tax: $7.1m - includes $2.6m dividend to the Senegalese government (10%), and $4.5m of withholding tax

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Strengthening Balance Sheet

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Hedging

At 30 June 2022, Resolute’s forward sales commitments were:

	US Dollar Forward Sales	US Dollar Forward Sales
	Forward	Delivery
Quarter	Price($/oz)	(oz)
September 2022	$1,803	60,000
December 2022	$1,848	50,000
March 2023	$1,873	35,000
June 2023	$1,953	30,000
September 2023	$1,951	30,000
December 2023	$1,908	25,000
Total	$1,875	230,000

Balance sheet improvement

• Net debt reduced by $46.0m to $182.8m at 30 June 2022 (31 December 2021: $228.8m), including cash and bullion of $81.8m

• Debt repayments of $55m including $30m in voluntary early debt repayments on the RCF

• $30m capacity on $150m RCF

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Corporate Activities

Bibiani Gold Mine

On 24 August 2022, Resolute agreed with Asante Gold Corporation (Asante) a deferred payment arrangement for the final tranche of $30m (plus $2.7m in respect of an environmental bond) previously due on 22 August 2022. The revised payment terms are as follows: payment of $10m on or before 19 September 2022; payment of $10m on or before 19 October 2022; payment of $12.7m and all interest payable on or before 18 November 2022. Interest on outstanding amounts will apply at commercial rates.

Ravenswood Gold Mine[1]

• A$50m 6% promissory note payable by 2027

• A$50m promissory note contingent on gold price and production by March 2024

• A$150m upside liquidity payment

Listed Investments[2]

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Value:$10.4m

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Value: $5.5m

1. Values for listed investments are as at 30 June 2022.

2. Refer to the announcement dated 15 January 2020 for a detailed explanation of these amounts.

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Syama Exploration

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Syama Greenstone Belt

• Resolute controls the entire 85km strike length of the Syama Greenstone Belt

• Highly endowed gold belt with total Mineral Resources of 8.7 Moz

• o Ore Reserves of 3.4 Moz

• 3 Moz production to date since 1990’s

• Very well-known geology and mineralisation systems

• Large sulphide Mineral Resources and Ore Reserves

• Have concentrated on oxide exploration for the last 4 years

• o Limited oxide Mineral Resources and Ore Reserves o Substantial unexplored sulphide potential

• Refocus since mid-2021 on sulphide exploration

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Syama North

December 2021 Resource

• 11.9Mt @ 2.85g/t Au for 1.1Moz

• 1.5g/t Au cut off

A21 Pit

Quartz Vein Hill to A21

Quartz Vein Hill Pit

• Present model of 3km strike length

• Drilled to 150m below surface

• Mineralisation remains open at depth

• Excellent drill intersections continuing

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Syama North Exploration

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Significant drill intersections of sulphide mineralisation below previously mined A21 pit oxides

• Exploration programs in 2022 focused on expanding the 2021 outlined >1 million ounces at 2.85 g/t of mainly sulphide Mineral Resources at Syama North (at a conservative cut-off grade of 1.5 g/t)

• Recent results over 2.9 km of strike represent some of the best ever gold intersections recorded from the Syama North area

• An updated Mineral Resource Estimate for Syama North will be completed in the third quarter of 2022

• Area 4-8km from Syama Complex - largely pre-stripped via previous oxide extraction

• High resolution Helimag scheduled for Q3 22 across full 85 km of strike

• Expected to result in further Oxide and Sulphide resource discoveries

• Recently commenced PFS into low capital expansion options

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Senegal

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Near mine exploration focus to support the capital investment in the operation

Mako

• Several near-mine targets on Mine Lease

• Mako NW target, soil anomaly parallel to Mako mine

Laminia JV

• Recently signed JV on Laminia permit located 15km from Mako

• Outcropping gold mineralisation coincident with soil and rock chip gold anomalies

• Located on the Massawa Shear Zone which is a major regional mineralising structure

Tomboronkoto JV, Senegal

• Historic non-JORC resource of 300,000oz hosted in sheared granite

• Previous drilling by Randgold at the Tomboronkoto prospect

• Excellent potential for satellite mill feed – 15km SE of Mako

• Open along strike and down dip with artisanal mining over 2km strike

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2022 Guidance

Production and AISC

• Maintained at 345,000oz at an AISC of $1,425/oz

2022 Capex

• Sustaining capex included in AISC: $63m

• $33m capitalised stripping costs (Mako: $22m; Syama: $12m)

• o $16m in tailings storage and several minor sustaining capex projects

• Non-sustaining capex: $18m

• milling circuit improvements, Sulphide circuit shut, remaining underground development equipment from contractor

Exploration Expenditure

• $15m focused primarily on near mine targets of Syama Sulphide and Mako

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www.rml.com.au

Contact James Virgo GM – Finance and IR Email: contact@rml.com.au Phone : +61 8 9261 6100

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