Resolute Mining : Appendix 4E Preliminary Final Report

Appendix 4E

Preliminary Final Report

For the year ended 31 December 2021

24 February 2022

Reporting Period

The reporting period is the year ended 31 December 2021 with the corresponding reporting period being for the year ended 31 December 2020.

Results for Announcement to the Market

ended 31

ended 31

12 months

12 months

December 2021

December 2020

Revenue from ordinary activities

$'000

$'000

down

11%

to

549,242

618,253

(including discontinued operations)

(Loss)/profit for the period (including

up

N/A

to

(367,471)

4,995

discontinued operations)

(Loss)/profit after tax attributable to

up

N/A

to

(319,203)

15,941

members

Dividends

Amount per

Franked amount

security

per security

Final dividend (per share)

N/A

N/A

Record date for determining entitlements to

N/A

N/A

the final dividend

Payment date for the final dividend

N/A

N/A

Franking

0% franked

12 months ended 31

12 months ended 31

December 2021

December 2020

Net tangible asset backing (per share)

$'000

$'000

0.38

0.71

This Appendix 4E - Preliminary final report has not been subject to audit and there is no audit report provided. This report should be read in conjunction with the Financial Report for the period ended 31 December 2020. The Financial Report for the period ended 31 December 2021 is currently being audited by Ernst & Young and will be finalised for lodgement with ASX in March 2022.

Preliminary final report - 31 December 2021

1

Preliminary Final Report

Consolidated Statement of Comprehensive Income for the year ended 31 December 2021

$'000	Note	2021	2020
			(Restated)(1)
Continuing operations
Revenue from contracts with customers for gold and silver sales	1	549,242	602,985
Costs of production relating to gold sales	1	(324,984)	(301,635)
Gross profit before depreciation, amortisation and other operating costs		224,258	301,350
Depreciation and amortisation of mine assets	1	(118,621)	(172,606)
Other operating costs relating to gold sales	1	(59,066)	(71,339)
Gross profit from continuing operations		46,571	57,405
Interest income	1	5,141	2,152
Other income	1	3,248	‐
Exploration and business development	1	(18,484)	(10,910)
Impairment of exploration and evaluation assets	1	(5,068)	‐
Impairment of mine properties and property, plant and equipment	1	(222,396)	‐
Administration and other corporate expenses	1	(15,687)	(17,456)
Share based payments expense	1	(1,122)	(1,178)
Treasury ‐ realised gains/(losses)	1	(185)	867
Fair value movements and unrealised treasury transactions	1	(71,955)	16,143
Share of associates' losses	1	(3,838)	(1,661)
Depreciation of non‐mine site assets	1	(2,372)	(2,725)
Finance costs	1	(16,882)	(24,676)
Other expenses	1	‐	(88)
Indirect tax expense	1	(24,760)	(24,308)
(Loss) before tax from continuing operations		(327,789)	(6,435)
Tax expense	1	(39,682)	(30,045)
(Loss) for the year from continuing operations		(367,471)	(36,480)
Discontinued operations
Gain/(loss) for the year from discontinued operations (2)		‐	41,475
(Loss)/gain for the year		(367,471)	4,995
(Loss)/gain attributable to:
Members of the parent		(319,203)	15,941
Non‐controlling interest		(48,268)	(10,946)
		(367,471)	4,995

1. Discontinued operations relates to the Group's Ravenswood gold mine
2. A reclassification of net realisable value adjustments has been made in the 2020 comparatives above to present these movements below in Fair value movements and unrealised treasury transactions to ensure consistency with the presentation of these amounts in 2021.

The above consolidated statement of comprehensive income should be read in conjunction with the accompanying notes.

Preliminary final report - 31 December 2021

2

Preliminary Final Report

Consolidated Statement of Comprehensive Income (continued)

for the year ended 31 December 2021

$'000	Note	2021	2020
(Loss)/gain for the year (brought forward)		(367,471)	4,995
Other comprehensive income/(loss)
Items that may be reclassified subsequently to profit or loss
Exchange differences on translation of foreign operations:
‐ Members of the parent		(16,106)	45,915

Items that may not be reclassified subsequently to profit or loss

Exchange differences on translation of foreign operations: ‐ Non‐controlling interest

Changes in the fair value/realisation of financial assets at fair value through other comprehensive income, net of tax

4,960 (5,651)

(12,981) 16,638

Other comprehensive (loss)/gain for the year, net of tax		(24,127)	56,902
Total comprehensive (loss)/gain for the year		(391,598)	61,897
Total comprehensive (loss)/gain attributable to:
Members of the parent		(348,290)	78,494
Non‐controlling interest		(43,308)	(16,597)
		(391,598)	61,897
Earnings (loss) per share for net income (loss) attributable for operations to the
ordinary equity holders of the parent:		cents	cents
Basic (loss)/gain per share	3	(28.92)	1.62
Diluted (loss)/gain per share	3	(28.92)	1.62
Loss per share for net loss attributable for continuing operations to		cents
the ordinary equity holders of the parent:		cents
Basic (loss) per share	3	(28.92)	(2.60)
Diluted (loss) per share	3	(28.92)	(2.60)

The above consolidated statement of comprehensive income should be read in conjunction with the accompanying notes.

Preliminary final report - 31 December 2021

3

Preliminary Final Report

Consolidated Statement of Financial Position

for the year ended 31 December 2021

$'000	Note	2021	2020
Current assets
Cash	4	67,607	88,591
Other financial assets - restricted cash	9	9,443	‐
Receivables	5	27,812	78,852
Inventories	8	156,589	158,929
Financial assets at fair value through other comprehensive income	9	20,828	36,004
Assets held for sale		‐	80,608
Prepayments and other assets		12,868	8,785
Asset sale receivable	10	56,495	‐
Current income tax asset		‐	17,911
Total current assets		351,642	469,680
Non current assets
Income tax asset		18,273	‐
Inventories	8	53,918	67,923
Investments in associates	12	1,365	4,649
Promissory notes receivable		40,207	40,262
Contingent consideration receivable		14,524	15,417
Deferred tax assets		‐	10,081
Exploration and evaluation		1,699	6,469
Development		265,701	495,281
Property, plant and equipment		229,164	292,678
Right of use assets		7,708	22,518
Total non current assets		632,559	955,278
Total assets		984,201	1,424,958
Current liabilities
Payables		91,542	83,832
Financial derivative liabilities	11	‐	415
Interest bearing liabilities	6	92,726	62,558
Provisions	11	62,854	75,720
Lease liabilities		2,991	11,249
Liabilities associated with the assets held for sale		‐	8,821
Total current liabilities		250,113	242,595
Non current liabilities
Interest bearing liabilities	6	223,979	273,613
Provisions	11	74,872	71,863
Deferred tax liabilities		1,591	9,422
Lease liabilities		8,086	12,358
Total non current liabilities		308,528	367,256
Total liabilities		558,641	609,851
Net assets		425,560	815,107
Equity attributable to equity holders of the parent
Contributed equity	7	777,021	777,021
Reserves		(3,706)	24,175
Retained earnings		(277,682)	41,521
Total equity attributable to equity holders of the parent		495,633	842,717
Non‐controlling interest		(70,073)	(20,629)
Non‐controlling interest of disposal group held for sale		‐	(6,981)
Total equity		425,560	815,107

The above consolidated statement of financial position should be read in conjunction with the accompanying notes.

Preliminary final report - 31 December 2021

4

$'000

At 1 January 2021

Loss for the year

Other comprehensive (loss)/income, net of tax

Total comprehensive (loss) for the year, net of tax

Dividends paid

Share based payments expense Disposal of assets held for sale

At 31 December 2021

At 1 January 2020

Gain/(loss) for the year

Other comprehensive (loss)/income, net of tax

Total comprehensive (loss) /income for the year, net of tax

Preliminary Final Report

Consolidated Statement of Changes in Equity

for the year ended 31 December 2021

Contributed equity	Net unrealised gain/(loss) reserve	Convertible notes/ Share options equity reserve	Non‐controlling interests reserve	Employee equity benefits reserve	Foreign currency translation reserve	Retained earnings/ (accumulated losses)	Non‐controlling interest	Non‐controlling interest of disposal group held for sale	Total
777,021	4,350	4,876	(724)	18,607	(2,934)	41,521	(20,629)	(6,981)	815,107
‐	‐	‐	‐	‐	‐	(319,203)	(47,929)	(339)	(367,471)
‐	(12,981)	‐	‐	‐	(16,106)	‐	4,960	‐	(24,127)
‐	(12,981)	‐	‐	‐	(16,106)	(319,203)	(42,969)	(339)	(391,598)
‐	‐	‐	‐	‐	‐	‐	(6,475)	‐	(6,475)
‐	‐	‐	‐	1,206	‐	‐	‐	‐	1,206
‐	‐	‐	‐	‐	‐	‐	‐	7,320	7,320
777,021	(8,631)	4,876	(724)	19,813	(19,040)	(277,682)	(70,073)	‐	425,560
639,859	(12,288)	4,876	(724)	17,077	(48,849)	25,580	(1,436)	‐	624,095
‐	‐	‐	‐	‐	‐	15,941	(10,946)	‐	4,995
‐	16,638	‐	‐	‐	45,915	‐	(5,651)	‐	56,902
‐	16,638	‐	‐	‐	45,915	15,941	(16,597)	‐	61,897

Shares issued (net of cost)	137,162	‐	‐	‐	‐	‐	‐	‐	‐	137,162
Dividends paid	‐	‐	‐	‐	‐	‐	‐	(9,577)	‐	(9,577)
Share based payments expense	‐	‐	‐	‐	1,530	‐	‐	‐	‐	1,530
Disposal of assets held for sale								6,981	(6,981)	‐
At 31 December 2021	777,021	4,350	4,876	(724)	18,607	(2,934)	41,521	(20,629)	(6,981)	815,107

The above consolidated statement of changes in equity should be read in conjunction with the accompanying notes.

Preliminary final report - 31 December 2021

5