By: Creamer media

The updated Doropo DFS, compiled by Lycopodium and building on the 2024 DFS prepared by Centamin, outlines a larger project, with a 55% increase in ore and a three-year extension to mine life, higher average life-of-mine (LoM) production and strong financials.

The study indicates a LoM average production of 170 000 oz/y over 13 years, for total production of 2.2-million ounces, compared with the previous estimate of 167 000 oz/y over ten years.

The DFS delivers significant returns, with a post-tax project net present value (NPV) at a 5%  discount (100% basis) of $1.46-billion and an internal rate of return (IRR) of 49%, based on a conservative gold price assumption of $3 000/oz.

Over the first five years, average yearly gold production is expected to be 204 000 oz at an all-in sustaining cost (AISC) of $1 294/oz.

Eger says this means that the updated construction capital cost of $516-million will be paid back in under two years at a $3 000/oz gold price.

There is an updated and competitive LoM AISC of about $1 406/oz, compared to the previous $1 047/oz.

The updates shows a significant upside at recent average spot gold prices of about $4 200/oz where post-tax NPV5% increases to $2.76-billion (100% basis) with an IRR of 77% and payback period of about one year.

The revised capital cost estimate of $516-million from $373-million reflects the larger scale project and up-to-date pricing. The study also incorporates a 33% increase in contained gold.

During the  first five years, there is an average yearly post-tax free cash flow and earnings before interest, taxes, depreciation and amortisation (100% basis) of $268-million and $364-million respectively, with a payback period of 1.7 years.

Resolute notes that the updated DFS strengthens its path to becoming a highly diversified gold producer across multiple assets and countries, targeting yearly production of more than 500 000 oz/y from 2028.

Eger says the company remains confident of the potential for future mine life extensions at Doropo through growing the existing resources as well as exploration potential on the permits.

“In addition to the value Doropo will add to Resolute and its shareholders we anticipate the project will provide major benefits to the local communities and Côte d’Ivoire. In our $3 000/oz base case we expect to contribute more than $420-million in government royalties and social fund payments over the project’s current life.

“Beyond these direct financial benefits, the project will also create significant employment opportunities, with a peak construction workforce of over 1 500 personnel and over 400 employees during operations,” he highlights.

“We have spent significant time in Cote D’Ivoire, since the acquisition, meeting stakeholders and the Minister of Mines has reaffirmed the government's commitment to deliver our mining licence by early 2026, if not before.

“Our November meeting in Abidjan was highly productive, and we remain confident in the collaborative relationship we have built with the Ivorian authorities. Receipt of the permit will let us to proceed with final investment decisions and financing, keeping us on track for construction to begin in half one 2026,” Eger explains.