Resolute Mining Starts Doropo Construction
Resolute Mining (ASX:RSG) has just reported its March quarter, and the numbers tell an interesting story. Production came in lower at 59,603 ounces and costs rose, yet the company’s cash pile surged by about US$106 million to US$315.4 million. On the surface, the ounces look weak. But we believe the market is already looking past the softer production, and for good reason. Resolute Mining sold its gold at an average price of US$4,858 an ounce during the quarter, and its next big mine, Doropo, has officially started construction. The real question for investors is whether the full Doropo re-rating is still ahead.
Why the Q1 Dip Is Planned, Not a Problem
Lower production in Q1 was expected and built into the 2026 plan. At the Mako mine in Senegal, open-pit mining ended in 2025, so the plant is now just processing leftover stockpiles. At Syama in Mali, the big Sulphide Conversion Project is still being commissioned, and higher-grade ore will only start flowing through from Q2 onwards. Both operations will ramp up in the second half of 2026.
Costs rose mostly because royalty payments grow when the gold price rises, not because mining is getting less efficient. Despite this, record gold prices turned the quarter into a cash machine. Revenue hit US$337.6 million, operating cash flow reached US$119.8 million, and total liquidity now sits above US$425 million. That is an enormous war chest for a company about to invest heavily in growth.
Why Doropo Is the Real Story
This is where things get exciting. Resolute’s December 2025 feasibility study valued the Doropo project using a conservative gold price of US$3,000 an ounce. Even on that basis, Doropo looked strong, delivering a post-tax value of US$1.46 billion and an IRR of 49% over 13 years.
But gold is now near US$4,729 an ounce, more than 57% above the study’s base case. Every extra dollar flows straight to future cash. Resolute Mining has already said that at US$4,200 gold, the project’s value jumps to around US$2.8 billion with payback in under a year. Today’s price is higher still.
And Doropo is no longer just a study on paper. In Q1, Resolute received the Presidential Decree, approved a Final Investment Decision, awarded the main construction contract to Lycopodium, and began ground clearance on site in April 2026. First gold is now targeted for H2 2028. In our view, this is one of the most underappreciated gold growth stories on the ASX.
The Investor’s Takeaway for Resolute Mining
The stock has already had a huge run, up more than 200% in the past year. At A$1.44, Resolute Mining sits just below the average broker target of around A$2.01, so the easy gains are likely behind us. In our view, the bull case rests on three things: the Syama upgrade running smoothly, Doropo staying on schedule, and gold holding firm. With US$315 million in net cash and a strong cash-generating portfolio, Resolute has the financial firepower to execute.
The key risks are Mali’s political overhang, construction hiccups at Doropo, and a sharp fall in the gold price. Elevated gold prices also added around US$135 per ounce in extra royalty costs during Q1, and higher fuel prices could push 2026 AISC towards the top of guidance if they persist. For existing holders, sitting tight looks sensible. For new investors, we believe waiting for a pullback is wiser than chasing the rally.
