Resolute Mining Limited (RSG) Earnings Call Transcript & Summary

Thank you for standing by, and welcome to the Resolute Mining Limited 2020 Annual General Meeting Conference Call. [Operator Instructions] I would now like to hand the conference over to Mr. John Welborn, Managing Director and CEO of Resolute Mining Limited. Please go ahead.

Thanks very much, Rachel. And as introduced, my name is John Welborn. I'm the Managing Director and CEO of Resolute Mining Limited, and I'm very pleased to warmly welcome those limited number of people who've joined us here physically in the Resolute offices for this year's AGM and also join everyone who's joining us virtually. Before I pass over to the Chairman to commence the AGM, I'll introduce Mr. Shane O'Sullivan, Resolute's Corporate Security Manager to provide a safety briefing.

Thank you, John. Good afternoon, ladies and gentlemen. As John introduced, I'm Shane O'Sullivan, Corporate Security manager. In the event of an emergency in the building, fire and [indiscernible] you are asked to remain where you are. If we are required subsequently to evacuate the building our flow warden will attend, and they will be wearing a yellow helmet, and that will take us to the fire stairs to exit the building. In compliance with Western Australian Government and the Resolute COVID-19 Response Team, you will notice that we are all to the best availability in this compliance space, seeing 1.5 meters apart maintaining our separation. But I please ask you to maintain that separation marking. The surfaces -- all flat services and chairs have been cleaned with proper chemicals prior to everyone coming into the room. Please feel free to use the hand sanitizer on the desk in front of you. Are there any questions at this stage? Thank you, John.

Thank you, Shane. Resolute respects the local indigenous populations wherever our business operates across the globe. And so in holding the AGM here in our offices, I acknowledge that the meeting is being held on the traditional lands of the Noongar people of the Whadjuk nation. And we pay our respects to their elders past, present and emerging. I thank everyone for their time today, and I now pass over to Resolute's Chairman, Mr. Martin Botha, to open the meeting. Over to you, Martin.

Thank you, John. Good afternoon, ladies and gentlemen. As John introduced, my name is Martin Botha, and I'm the Chairman of Resolute Mining Limited. I'd like to add my welcome to everyone attending and all joining our Annual General Meeting. On behalf of the Board and staff at Resolute, I would also specifically thank those shareholders who've made time to attend today's meeting, whether that be in person or whether you've dialed in or are watching and listing to our live webcast online. Due to the COVID-19 pandemic, we encourage shareholders to participate virtually. As it has turned 3 p.m., and I'm informed that a quorum is present, I will declare the meeting open. If you're present in person and you have not already, can you please ensure you have registered with the Computershare representatives outside the room. Even, if you are not a shareholder and have obtained a admission card. I'd like to introduce my fellow Directors, and ask them to raise their hand, because I cannot point you out, non-executive directors, Mr. Peter Sullivan; Ms Yasmin Broughton; Mark Hot; and Sabina Shugg. Also, I want to introduce you, Mr. John Welborn, our Managing Director and CEO. In addition, I'd like to welcome Gavin Buckingham, who represents Ernst & Young, the company's auditors, and he is available to take questions from shareholders. And finally, welcome, and thank you to Nicole Lewis, the representative of our share registry, Computershare, who is also in attendance today. I note that there have been no apologies received prior to the meeting. Are there any apologies to be noted, John?

No.

Thanks. I've been advised by the company secretary that the Notice of Meeting has been properly circulated, and it has no objection, I'll take the Notice of Meeting as having been read. The minutes of the previous AGM were approved by the Board and signed by myself as Chairman. A copy is available should any member wish to see them. On voting, in the interest of equitably representing the views of shareholders, we intend to call a poll in relation to each of the resolutions to be considered at this meeting. The poll will be conducted at the end of the meeting, and the results will be released to the Australian Securities Exchange after the meeting has concluded. The persons entitled to vote in each poll are all shareholders, representatives and attorneys of shareholders and proxy holders who are in attendance at the meeting in person have been provided with the green voting card and are not otherwise excluded from voting. If you have any questions in relation to completion of your voting cards, please speak to the Computershare staff, we will circulate the ballot boxes after reading all resolutions. And if you've already voted your proxy prior to this meeting, you do not need to vote again. Please refer to the Notice of Meeting for details of any voting exclusions on particular resolutions. The proxies are available for inspection, and the proxies to see through each resolution will be shown on the screen. Undirected proxies that default to the Chairman of the meeting will be voted in favor of the resolution, including whether resolutions are connected directly or indirectly with the remuneration of key management personnel. On the format of the meeting, there will be an opportunity to ask questions relating to each resolution as it is considered. If I may ask prior to asking your questions, speak your name and whether you are a shareholder in your own right or are present as an attorney, proxy or corporate representative of the shareholder and the name of that shareholder. Please ensure the questions pertain directly to the resolution being considered at that time. Only shareholders or those present representing a shareholder are permitted to ask questions. After the close of the meeting, I'll invite John Welborn to make a presentation, and there will be an opportunity then to ask more general questions relating to the company following that presentation. The first item on today's agenda relates to consideration of the annual report of the company and its controlled entities for the year ended December 31, 2019, which includes the financial report, the Directors report and the auditors report. It is not necessary to formally part the report. However, as shareholders have gathered today, and we have the full Board and auditors available, it is a convenient time to ask shareholders whether they wish to address any matters in those documents. The annual report details the company's approach to governance, disclosure issues and management. It includes the remuneration report and the details of the company's approach to sustainability. I now invite shareholders to comment or ask questions on the reports. Questions may also be asked of the auditors in relation to the conduct of the audit, the content of the audit report, accounting policies adopted by the company and the independence of the auditor in carrying out the audit. First, in the room. Are there any questions in the room, John?

Yes, Martin, there is.

[ Bob Callahan ] from the ASA, representing 10 shareholders, 51,000 shares. Mr. Chairman, it was well-advertised that dividends would be 2% of gold sales and last year, the dividend was about 3 -- more than 3% of gold sales. This year, no dividend. Is that a change of policy or just for the situation we're in at this -- we are now in. Has the policy changed or is it just a special thing for this year?

Thanks, Bob. I think, clearly, the current environment is unique. But the policy has not changed, and we will consider the revenues that the company has received or made since the last dividend declaration as we move forward to consider dividends in the future. And John, if you want to add anything more to that answer?

No, I think that's very accurate, Martin. Bob. Policy is still there. It's reported in our annual report. And as Martin says, we'll -- the full results for 2020, the current year, we'll consider a dividend and obviously consider the revenues that we've earned since we last paid a dividend, which, as you say was in 2018. There are no other questions here, Martin. Sorry, Bob?

I may have a question on protocols. We -- with other companies, and we asked Computershare to send us the copy. We only received them today. I think the proxy representative form to Computershare and ask them to record our proxy votes. [indiscernible] Resolute does not allow the attorneys voting that way. I say, why you won't allow Computershare to allow our proxy votes to be recorded electronically.

With your permission, Mr. Chairman, I'll pass that either to Amber or Nicole Lewis from Computershare. Yes.

For the Computershare [indiscernible] holding. So probably holding of [indiscernible]. So when it comes to polling at the meeting, it was Resolute's -- at the teleconference and the actual telecom polling. And that is why we can't access whole cards electronically.

That was your preference?

In the exceptional circumstances for this year's AGM and recognizing that at the time, we were thinking that a physical meeting was not going to be possible. We have implemented a more appropriate form of voting in consultation with Computershare. And we'll consider that again next year, Bob, particularly, if you want to pass on any difficulties you had in relation to registration and the time cutoffs that were required to enable the virtual meeting.

John, I wonder if you could just summarize shortly the question that was raised. It was not possible to hear Bob's question clearly on the line. So I would imagine that anyone on the line has not understood that exchange. As I understand it, Bob was just pretraining to a question on being able to make proxy votes, to recognize the proxy vote is that correct?

The question was in relation to registration for polling and the time cutoff are of 48 hours before the meeting. And why Resolute have chosen to do that and the response was in consultation with Computershare and in managing what was going to be a different style of meeting due to COVID-19 that was the protocol that we decided on, and we'll reassess it next year depending on requirements. But I would suggest, Bob, and we all hope, particularly here in Western Australia, that will have a more traditional approach to the meeting next year.

Okay. Any other questions in the room, John?

No -- Bob, any other questions? No? No, Martin.

Are there any questions on the call, Rachel?

[Operator Instructions] There are no phone questions at this stage.

Thanks, Rachel. We will move to the resolution #1 on the agenda, which relates to the adoption of the remuneration report for the year ended December 31, 2019. There is a detailed explanation of this resolution in the Notice of Meeting, commencing on Page 11. I now move resolution 1 as follows: that for the purposes of Section 250 are 2 of the Corporations Act and for all other purposes, approval is given for the adoption of the remuneration report as contained in the company's remuneration report for the year ended December 31, 2019. The proxy receival resolution 1 show 97.58% of votes in favor of the resolution they're on the screen. Are there any questions in the room, John.

Yes. Martin, and Bob has a question.

Mr. Chairman, we see that the short-term incentive is all paid in cash and it starts to look like annual salary. When will you consider that something like half the STI is paid in deferred share? So it's a real incentive, and it doesn't look like annual salary. And secondly, on LTI, the odds paid at 100% at the 75th percentile. So for such a successful company, why do you pay 100% when 25% of your peers outperform you?

All right. Thank you, Bob. I will pass that to our remuneration share Mark Potts. I'm not quite sure that the STI is entirely accrued or as the members -- all the key executives in the way you mentioned it. But Mark perhaps you can cover it and start with?

Yes. Thanks, Bob. So a couple of things just on the first question around STI. We felt like really with the LTIs and the components of all of the package that we do around REM, that it was appropriate to do that. The long-term incentives where we actually issue equity. So really, the STI is for performance over and above what we think as sort of set out as our interim goals in the company. So this is still over and above what we think of as normal salary or just doing your job, et cetera. So I think that's always been our policy for a long time around that. And with regard to the LTI, the reason that we look at the 70, we did benchmark against an awful lot of people in terms of how those LTIs are paid out. And it is a relative TSR, so we're actually looking at some companies. There are always going to be some companies based on gold price, the stage of development, other things, et cetera, that are going to see some overall performance, et cetera. But we think that 75 percentile is actually benchmarked pretty well. And it's actually quite an aggressive target when you look at the peer group that we have. I hope that answers -- Okay. Great.

Thanks, Mark. Any other questions in the room, John?

No, there are no other questions, Martin.

Are there any questions on the call, Rachel?

No questions on the phone.

Thanks, Rachel. I'll now put the resolution to a poll. For those in attendance in person please complete your voting card for this resolution now. [Voting]

While you do that, I will move on to Resolution 2 on the agenda, which seeks the approval for the reelection of Mr. Mark Potts as a director. There is a detailed explanation of this resolution in the Notice of Meeting, commencing on Page 12. I now move resolution 2 as follows: that Mr. Mark Potts, Director, who retired by rotation pursuant to and in accordance with the listing 14.4 and article 3.6 of the constitution, being eligible for reelection pursuant to article 3.5A of the constitution, pursuant to article 3.4 of the constitution and for all other purposes, is reelected as a director on the terms and conditions in the explanatory memorandum. As you can see on the screen, or the proxies received for resolution 2 show 98.61% of votes. In favor of the resolution. Are there any questions on this resolution in the room, John?

No, Martin.

Are there any questions on the call, Rachel?

There are no phone questions.

Thanks, Rachel. I will now put the resolution to a poll. For those in attendance in person, please now complete your voting card for this resolution. [Voting]

While you're doing that, we will move to resolution 3 on the agenda, which seeks approval for the reelection of Ms. Sabina Shugg as a director. Again, there is a detailed explanation of this resolution in the Notice of Meeting, commencing on Page 13. I'll now move resolution 3 as follows: That Ms. Sabina Shugg, Director, who retired by rotation pursuant to and in accordance with listing Rule 14.4 and Article 3.6 of the constitution, being eligible for reelection pursuant to article 3.5A of the constitution pursuant to article 3.4 of the constitution, and for all other purposes, is reelected as a director on the terms and conditions in the explanatory memorandum. The proxies received for Resolution 3, show 97.96% of votes in favor of the resolution. Again, let's go first for any questions on this resolution to the meeting room? John, any questions?

Yes, there is.

Thank you, Mr. Chairman. We note that Ms. Sabina Shugg obtained to first share at the February SPP. When will this director acquire more shares to more equal the value of her annual salary as is a standard policy that most Board members have achieved.

Was that question from Bob, John?

Yes, Martin? Yes.

Here, I think I yes, I can. I think I just wanted to restate, we do not have a policy that requires directors to can either own any shares or to own any particular level of shares in the company. Clearly, we do note your position on this, which you have made clear before and that's the policy of the company. Obviously, Sabina, if you wish to add anything you can, but you're much required to. Okay. Is that clear, John?

Yes. Thank you. Thank you, Martin. Yes. There are no other questions in the room.

Are there any questions on the call, Rachel?

There are no phone questions.

Thank you, Rachel. I will now put the resolution to a poll. For those in attendance in person, please now complete your voting cards for this resolution. [Voting]

I'll now move to resolution 4, while that's continuing. The resolution 4 seeks approval for the annual Grant of Performance rights to Mr. John Welborn. There is, again, a detailed explanation of this resolution in the Notice of Meeting, which commences on Page 14 of that notice. I now move resolution 4 as follows. That, for the purposes of listing rules 10.14 and 10.19, Section 200 E of the Corporations Act and for all other purposes, shareholders approved the issue of 699,668 performance rights to Mr. John Welborn and/or his nominee under the 2020 Performance Rights plan in accordance with the terms and conditions described in the explanatory memorandum. The proxies received for Resolution 4 are on the screen, and they show 98.39% of votes in favor of the resolution. Are there any questions in the room, John?

Yes.

Thank you, Mr. Chairman, [ Bob Callahan ], again. We know that with this resolution you have adjusted your peer group from last time. What's your rationale for keeping Australian gold miners in your peer group just because you are listed on the ASX, when performance, you're totally networked after Ravenswood divestment, you're totally focused on African miners. So the African comparable companies. And what's the rationale for keeping some Australian miners there.

Thank you. Bob. The peer group to later peer group -- our peer group is reviewed each year, and we do that carefully looking at where Resolute is, and where our existing peer group is and look through them all, and we are continuously looking to define a more accurate peer group for the company. I think you will find in the remuneration report this year that we have made changes to the peer group to reflect companies, which are listed on other exchanges. And to reflect the fact that the company is more African-focused. Clearly, there are other Australian listed companies, which also have activities in Africa. So I would see that for the future, there will always be Australian mining companies within the peer group as well. But the peer group has been changed since last year, and I think we consider -- the Board that, that accurately reflects the peer group against which to be measured. Again, either Mark or John, I don't know if either of you would like to add any comments to that?

I think the only thing I'd add, Bob, is that, obviously, investors have a range of choice of gold companies who are listed on the London Stock Exchange in the ASX Stock Exchange. And we do -- notwithstanding jurisdiction, there's only one factor to consider amongst our peers. We also see ourselves very much as an international gold miner and in evaluating our investment returns for shareholders we are quite happy to be compared against other jurisdictional gold miners. You'd be aware of how successfully the Australian gold miners are performing at the moment. So it's also -- you'd be pleased with the peer group that we're measuring against. The other thing I'd note is that the landscape of listed African -- for purely African focused gold miners is a very small peer group and would by necessity create an issue. So I think the Board has taken steps over many years, as Martin said, to reevaluate the peer group to make sure it's [Audio Gap] peers that actually have assets all around the world as well. It's not just geographically restricted in terms of where the asset base is. So as I say, we continue to evolve and look at that as the landscape changes.

Thanks, Mark. Thanks, John, and thanks for the question, Bob. Any other question in the room, John?

No. No question in the room.

Are there any other questions on the call, Rachel?

There are no phone questions.

Thanks, Rachel. I will now put the resolution to a poll. For those in attendance in person, he is now complete your voting card for this resolution. [Voting]

While you're doing that, we will move to resolution 5 on the agenda, which seeks approval for renewal of the Resolute Mining Limited Performance Rights Plan. There is a detailed explanation of this resolution in the Notice of Meeting, commencing on Page 19. And then I now move resolution 5 as follows. That for the purposes of listing Rule 7.2 exception 9 B and for all other purposes, shareholders approve the Resolute Mining Limited 2020 Performance Rights Plan. The principal terms of which are summarized in the explanatory memorandum and approved issue of performance rights under that plan, including the issue of shares upon divesting of those performance rights. The proxies received for resolution 5, as shown on the screen, show 98.4% of votes in favor of the resolution. Again, are there any questions on this resolution from the meeting room, John?

No questions in the room, Martin.

Thank you. Are there any questions on the call, Rachel?

There are no phone questions.

Thanks, Rachel. I'll now put the resolution to a poll. For those in attendance in person, please now complete your voting cards for this resolution. [Voting]

And again. While those in person are doing that, I will move to resolution 6 on the agenda, which seeks approval of potential termination benefits under the 2020 performance rights plan. Again, this is a renewal of what has been approved. There is a detailed explanation of this resolution in the Notice of Meeting, commencing on Page 20. And I'll now move resolution 6 as follows: that for the purposes of Part 2B.2 of the Corporations Act, listing rule 10.19 and for all other purposes, the approval be given to the company to provide a benefit to each key officeholder under the 2020 performance rights plan in connection with the person ceasing to hold up managerial or executive office on the terms and conditions described in the explanatory memorandum. Proxies received for resolution 6 show 98.51% of votes are in favor of the resolution. Again, are there any questions in the room on this resolution, John?

No questions in the room, Martin.

Thank you. Are there any questions on the call, Rachel?

There are no phone questions.

Thanks, Rachel. I'll now put the resolution to a poll. For those in attendance in person, please now complete your voting card for this resolution. [Voting]

Thank you. Again, we'll move to resolution 7 on the agenda, which seeks approval of the deed of indemnity, access and insurance. There is a detailed explanation of this resolution in the Notice of Meeting, commencing on Page 23. I now move to solution 7 as follows. That pursuant to and in accordance with Chapter 2D and 2E of the Corporations Act and for all other purposes, approval be given to the company to: A, indemnify Mr. Stuart Gale during his office and after the succession of that office in respect of certain claims made against Mr. Gale in relation to the period of his office, b uses reasonable endeavors to procure an insurance policy and pay the premiums of insurance as a safe at market rates from Mr. Gale in respect of certain claims made against Mr. Gale in relation to the period of his office, except to the extent such insurance cannot be procured at a reasonable cost or is otherwise unavailable to the company. C, Uses reasonable endeavors to ensure that Mr. Gale is at all times covered under an insurance policy for the period of 7 years from the date Mr. Gale ceases to hold offers the insurance runoff period, which will be on terms not materially less favorable to Mr. Gale and the terms of insurance applicable at the date of termination of his office and to continue to pay those premiums during that insurance runoff period. Except to the extent such insurance cannot be procured at a reasonable cost or is otherwise unavailable to the company. And, D, to provide Mr. Gale with access upon the termination of his office for a period of not less than 7 years following that termination to any group company records, which are either prepared by or provided to him during the retention period. On the terms and conditions as in the explanatory memorandum. The proxies received for Resolution 7 show 98.84% of votes in favor of the resolution. Regarding our new CFO are there any questions, John?

No.

Are any questions on the call, Rachel?

There are no poling questions.

Thank you. I will now put the resolution to a poll. For those in attendance in person, please now complete your voting card for this resolution. [Voting]

Now that all resolutions have been read. For those in attendance in person, please ensure you have completed the voting card and timely logic voting cards in the ballot boxes circling in the room. If you have any questions, please ask a Computershare representative. And I'll ask John to let me know when those that are attending have voted such that we could move on.

Those in attendance have voted, Martin.

Great. Thank you, John. I declare the poll closed. The auditors in the general meeting, I'll ask the share registry and our company's secretary to calculate the poll results and to announce into the AFX when that is completed following the close of the meeting. Thank you all again for your participation in today's Annual General meeting. I now declare the meeting closed. And John will now make a presentation, and there'll be an opportunity to ask more general questions relating to the company following that presentation. Thanks. Over to you, John.

Thanks very much, Martin, and thanks, everyone, for the continued presence, both here at the meeting and online. And before I give a presentation, on behalf of management and the Board, I want to thank shareholders for their engagement and exceptionally strong support. So it's very pleasing to have received such a strong turnout from the register with, as you've seen on the proxy votes, more than 600 million votes for all the resolutions. And in terms of the proxies presented, if not the final poll, all resolutions being put to the meeting, having support at or above 97% for. So that's very pleasing, and I thank shareholders both for their engagement and the support of the Board and management and process. This presentation has been lodged today on the ASX with our usual disclaimer and notice. And it obviously is appropriate at the Annual General Meeting to summarize the reports of the 2019 year that the annual report is responsible for but I'll also use the presentation to update shareholders where appropriate. Shareholders will note the change significant to this first slide that we have always used for Resolute being that we are now a purely African-focused gold miner, having divested Ravenswood. And that's a big change represented not only in the map, but also in the underlying reserves and resources that we now control. And the adjustment of our 2020 guidance from the original number of 500,000 ounces of gold production from Syama and Mako and Ravenswood to revise guidance of 430,000 ounces after the sale of Ravenswood earlier this year. We maintained the cost guidance of USD 980 an ounce. That was largely in response to the significant uncertainties at that stage around COVID-19. And I'm pleased that we -- the confidence we have in maintaining guidance in the current circumstances continues to stay. And that conservative approach to guidance allows us to proceed with confidence, both in terms of production and compliance with guidance. I'll move on to the next slide, if you're watching on the screen. There's a little bit of a delay. So I'll just talk, I wanted to cover our response to COVID-19. It's been a comprehensive response. Anyone listening anywhere in the world would be aware of the impacts of COVID-19, and I'm very pleased to say that we have continued our operations safely. We don't have any confirmed cases across the company in any of our locations in Africa, in Senegal, in Mali and Ghana, our exploration activities in Côte d'Ivoire and Guinea, our offices in London and in Perth. I'm also very pleased with the adherence to protocols across all of those jurisdictions and our ability to keep operating. Shareholders should be confident we're a company that have operated in Africa for more than 20 years. At Syama, we've demonstrated, we had robust supply lines during similar challenges in the Ebola pandemic as well as coup d'etats, political instability and other challenges. And all of that experience has been important in responding to COVID-19. And while here in Perth, the office that people who are physically present here are currently in, you will see that we've had returned to work from our corporate workforce. Obviously, the COVID-19 story in Africa is still unfolding. We've been really pleased that while we prepare for a steep curve and crisis, we have not yet seen that. And it's scientifically uncertain as to whether that's something to do with the jurisdiction or the virus. But for whether it's scientific or anecdotal, long may it continue. So populations, our workforces are safe, and we continue to operate. And we'll obviously update the market for that and I do commend our staff, particularly in Africa for their response. And I'm also very pleased about the shareholders that we've been able to support the local communities and the host governments where we work with very important PPE in responding to the pandemic. Shareholders will have noticed in this year's annual report that we have again increased our disclosure on sustainability and our activities. And we're very proud of that, and it's the disclosure improvement we expect to continue, which importantly maps the important improvement we believe we're having on the ground. So this slide is actually a picture of one of our community farms in Senegal, and there's a number of these in the communities in and around the Mako Gold mine in Eastern Senegal. It's been an incredibly successful program, where we engage local people in growing produce, which that they can then sell in local markets. And it's obviously one of our key sustainability pillars in terms of providing food and sustainable agricultural activity. The structure and framework of our activities in sustainability is very much part of the responsible gold mining principles that we've adopted. Resolute is proudly a member of the World Gold Council, we participated in the communities that established these principles. And we are one of the companies who are adopting them. Adopting them is fairly simple. We now have the process of implementing them and then reporting against them, and that's a 3-year project that will be reported on in future annual reports. But it's an important framework and one that we're pleased to participate in. It effectively aligns us with best practice across the industry. A quick review of 2019. We had an improved safety performance across all of our operations. A couple of key things that shareholders are aware of. We acquired the Mako Gold Mine in Senegal, a very value-accretive acquisition and now forms a key part of our portfolio. We completed the commissioning of the Syama Underground Mine. And we had significant success at Tabakoroni. The picture in the background of this slide is actually the Namakan open pit at Tabakoroni, and that is effectively a new open cut mine that we established during 2019. And although, obviously, we focus on the highlights, the open pit and the oxide mining performance at Syama was an incredibly important and positive outperformance during 2019, which allowed us to fund the acquisition of Mako and to handle the significant operational challenges we had with the sulfide circuit at Syama and the well-documented and credentialed crack in the roaster. So that the -- in putting the picture of the Namakan open-pit mine in the background of 2019, at least for me, it's a recognition that the success we had in establishing and operating a new open pit mine, a new haul road and the higher recoveries and strong performance from the oxide operation at Syama was absolutely crucial in supporting our performance during the year. Obviously, we set the groundwork during 2019 for the sale earlier this year of Ravenswood. We progressed our strategic review of Bibiani. And another key step in the history of Resolute was we listed the company on the main board of the London Stock Exchange, and that now forms a key part of our register and an increasing part of the participation of the company from shareholders. A summary of gold performance. We met revised guidance. It was down on our original guidance 385,000 ounces of gold. And that all-in sustaining cost of USD 1,090 an ounce was heavily influenced by the crack in the roaster. And that is all -- shareholders who are monitoring our performance will note the disclosures we had in the March quarterly report around the improvement that we're seeing from particularly that Syama sulfide operation. We expect that to continue. The production slide in front of you shows 6 monthly productions over the last 2 years in half years. And you can see the important contribution of the Mako Gold Mine in the second half of 2019. We highlighted in the March quarter that Mako and Syama collectively produced 100,000 ounces at USD 918 all-in sustaining cost, and that's the performance that we look to improve and continue during 2019 from those 2 production sources. Revenue for 2019 was AUD 770. We have obviously, shareholders would be aware of the appendix 2E. The first time we published these results was at the end of February and at the end of March, we published a more comprehensive disclosure and a presentation on these results, which documented the one-off nonrecurring items that resulted in the net loss after tax of AUD 113 million. Also, obviously, a key result in the lost revenue from the roaster crack that originally occurred in August, September and then occupied the rest of the year as we repaired that crack. And 2020 is really a story of demonstrating consistent and positive performance from the roaster. This slide, again, showing the increase in costs, particularly in that second half of 2019, in particular, at Syama around the roaster. And shareholders will be aware, obviously, the high-cost production at Ravenswood is now no longer in our portfolio, and we're bringing down as rapidly as we can that per-unit cost at Syama. Group earnings profile, a more positive story as we obviously acquired Mako, and we would look to continue that growth in earnings. And again, on the right-hand side, showing the impact of the roaster crack, which is obviously an ongoing and important theme of 2019. And that's again shown in the cash flow analysis. This waterfall really shows 2 -- a couple of key things. We generated significant operating cash flow, we augmented that with debt, where we borrowed, and we spent that pretty much 50-50 on capital expenditure largely at Syama and the acquisition of Mako. And the benefits of both of those investments, we expect to reach during 2020 from strong performance from Syama and strong performance from Mako. That really sort of brings to an end the ongoing summary of 2019. And moving forward, here's a picture of the twin declines at Syama and an update on what we're working on 2020 guidance of 430,000 ounces. And on that basis, March quarter showed a strong improvement. We expect that improvement, particularly at Syama sulfides to continue. Here's a bigger picture of that Tabakoroni open-pit mine, currently feeding our oxide circuit. We're completing a very exciting feasibility study based on the ongoing exploration program. We have at Tabakoroni. We've identified a number of very high-grade underground shoots where we expect to establish a second underground ore source at Syama and I'm looking forward to publishing that in the second half of this year when it's completed. Our Syama Gold mine, that's a picture of the sulfide processing plant at Syama. It's now operating at full capacity. And as I say, we're looking forward to demonstrating that performance for the rest of 2020 and beyond. We do have significant exploration and ongoing upside at Syama. We published those results recently. We have a number of drill rigs still working on further oxide discoveries as well as the underground at Tabakoroni. And we are now very confident that we've got a good runway in front of us for the oxide ores as we develop potentially alternative sources underground. I mentioned the Tabakoroni Underground. The other key activity during 2020 is the upgrade of our Syama Power Supply, a project with our key partner, Aggreko there, which is underway and should be completed by the end of the year. At Senegal, our operations are very stable and continuing. We're working on potential mine life extensions as well as smoothing out the life of mine plan for Mako, something that we're working on and we'll publish later on in the year. The guidance this year at Mako is 160,000 ounces at USD 800 all-in sustaining and a key improvement to our portfolio, which is presented on the slide here. Obviously, we started the year with Ravenswood. It's now exited our portfolio. We're looking forward to strong performance from the new owners, and we're exposed to that strong performance through a gold price note -- upside note as well as an upside sharing participation in both of those total AUD 200 million of potential future value from the success of the Ravenswood development and obviously, very strong Australian dollar gold prices. Support the value of those potential upside payments. The corporate summary. The share price graph demonstrates the disappointing underperformance during a period of very strong gold prices so far during 2020. We -- management are very aware of that, and we're working on re-rating the performance of the company through consistency, operation and a strong degree of confidence that our ability to cope with and perform during the COVID-19 pandemic and meeting guidance this year of 430,000 ounces at USD 980 all-in sustaining cost in the environment of the current spot price, we'll see a very strong re-rating in our performance and underlying value. And we have confidence that our future is in our hands, and that's what we're working on delivering. We've made those expectations very clear across our company and externally. And with that, I'll finish this presentation and open up for any questions either in the room or anyone who's participating by teleconference.

Just -- Could I have any idea of cost about the initial cost and the ongoing cost of the London main board listing outline benefit? Is it a significant cost -- additional NOI?

Yes. It's a good question, Bob. So the budget we had around what was effectively a compliance listing on the main board was $500,000 originally. And obviously, there's some other compliance costs that fits within our broader compliance framework and isn't split between the ASX and the LSC. We're actually in the process of preparing another prospectus in relation to the capital raising we did earlier this year to ensure that all of our shares currently on issue are accepted and tradable on the London Stock Exchange. So it was -- the total cost of listing on the London Stock Exchange was less than $1 million. And we believe that was an appropriate investment for the long-term strategic value of that listing. And obviously, we're very pleased with the increased visibility and the increasing liquidity that we're seeing on the London Stock Exchange. It was never intended to be a panacea. But certainly, we believe that the appropriate -- one of the appropriate engagements with the investing landscape in African gold mines is through the London Stock Exchange. And we're very pleased with the support we've had from Berenberg and the increasing visibility it gives us, not only in Europe and London, but also in Africa and some of our political relationships, having coverage from Australia as well as London in terms of regulation and listing. There are no other questions here. Rachel, are there any questions from participants on the call?

There are no phone questions at this stage.

Okay. Well, thank you very much for the people who are here and anyone on the call as we do quarterly conference call in a similar format when we publish our quarterly activities report. And we're always available to answer questions on those occasions. And we're also obviously available at any time for contact, particularly for shareholders. This is your company and our company. We're proud of what we do, but we're also obviously keen to acknowledge our performance and respond to questions, concerns and any input is always appreciated. So that's the end of my presentation. If you have any other comments, Martin, otherwise, we'll close this session and thank everyone for their attendance.

No, John, thank you very much. Thanks for that. And sorry I couldn't be there, but we all know that feeling at the moment. So good. Looking forward to seeing our [indiscernible] some time in the near future. Thanks very much, indeed.

Thank you, everyone. Stay safe and stay Resolute. Thank you very much.