Why Resolute Mining (ASX:RSG) Is Up 26.4% After Major Doropo Gold Resource Upgrade – And What's Next

• Earlier this month, Resolute Mining Limited announced a 28% increase in its Mineral Resource Estimate for the Doropo Gold Project in Northern Côte d'Ivoire, raising total measured, indicated, and inferred resources to 4.4 million ounces at a grade of 1.19 grams per tonne gold.
• The update highlights that 84% of these resources are in the higher-confidence Measured and Indicated categories, and most mineralization occurs within 150 meters of surface, indicating substantial near-surface potential.
• We'll explore how this substantial Doropo resource upgrade could reshape Resolute Mining's growth outlook and risk profile in coming years.

Find companies with promising cash flow potential yet trading below their fair value.

Resolute Mining Investment Narrative Recap

To be a shareholder in Resolute Mining right now, you need to have confidence in its strategy to transform resource growth at projects like Doropo into expanding production and cash flow, despite potential permitting risks and execution hurdles. The recent Doropo resource upgrade meaningfully enhances near-term expectations for scale and operational upside, but it does not remove the key risk around timely permitting and fiscal terms in Côte d'Ivoire, which remain the most important near-term factors for unlocking value from this asset.

A recent earnings announcement showed a significant year-over-year jump in net income to US$58.77 million, reinforcing management’s effort to deliver profitability even as gold output in the first half of 2025 was marginally lower compared to the previous year. This profitability, alongside Doropo’s expansion, sets up the potential for both increased production and improved margins if operational and regulatory milestones are met.

Yet, investors should keep in mind that, despite these positive trends, the risk of Burkina Faso election-related permitting delays and exposure to changes in the mining code could still ...

Read the full narrative on Resolute Mining (it's free!)

Resolute Mining's outlook forecasts $1.2 billion in revenue and $338.5 million in earnings by 2028. This assumes an annual revenue growth rate of 11.0% and an earnings increase of $329 million from the current $9.5 million.

Uncover how Resolute Mining's forecasts yield a A$1.05 fair value, a 18% upside to its current price.

Exploring Other Perspectives

Fair value estimates from six Simply Wall St Community members span from A$0.68 up to A$1.60, reflecting sharply varied views on Resolute Mining’s prospects. Many are focused on whether Doropo’s resource boost can meaningfully outweigh continued concerns over permitting delays and shifting fiscal regimes in West Africa.

Explore 6 other fair value estimates on Resolute Mining - why the stock might be worth as much as 81% more than the current price!

Build Your Own Resolute Mining Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Resolute Mining research is our analysis highlighting 1 key reward and 1 important warning sign that could impact your investment decision.
• Our free Resolute Mining research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Resolute Mining's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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