Financial Management Report on Resolute Mining

Running head: FINANCIAL MANAGEMENT
Financial management
Resolute Mining
FIN600 TX 2017
Student Name
Student ID
Author note

1FINANCIAL MANAGEMENT
Executive summary
The report will focus on business background of Resolute Mining. The report will highlight
the core activities of the company, analyse its financial statements to determine the financial
performances and economic outlook of the company. Further, various ratios will be used
under the report including the profitability ratios, efficiency ratios, liquidity ratios and capital
structure ratios or gearing ratios. The ratios will be computed taking into consideration the
year 2016 and 2017 data and comparing it with the industry average. The report will also
concentrate on the political, competitive and external factors associated with the company.
Finally it will assess whether the company is suitable for investment or not.

2FINANCIAL MANAGEMENT
Table of Contents
1. Introduction.........................................................................................................................3
1.1 Background and business.................................................................................................3
2. Company analysis..................................................................................................................4
2.1 Analysis of company’s financial statement......................................................................4
2.2 Current financial performance and economic outlook.....................................................4
1. Ratio analysis......................................................................................................................6
3.1 Profitability ratios.............................................................................................................6
3.2 Efficiency ratios...............................................................................................................8
3.3 Liquidity ratios.................................................................................................................9
3.4 Gearing ratios.................................................................................................................10
2. Recommendation and overall assessment.........................................................................11
4.1 Political and competitive environment’s impact on the business..................................11
4.2 External factors required to be considered.....................................................................12
4.3 Ethical consideration in case of insolvency...................................................................12
4.4 Possibility of merger and acquisition.............................................................................13
4.5 Recommendation............................................................................................................13
References................................................................................................................................14

3FINANCIAL MANAGEMENT
1. Introduction
The report will concentrate on the business background of Resolute Mining, the ASX
listed for profit mining company based in Australia. The report will further highlight the core
activities of the company, analyse its financial statements to determine the financial
performances and economic outlook of the company. Further, various ratios will be used
under the report including the profitability ratios, efficiency ratios, liquidity ratios and capital
structure ratios or gearing ratios. The ratios will be computed for 2 years that is for 2016 and
2017 and the performance for the year 2017 will be compared against the performance for the
year 2016. In the next section the report will highlight the competitive environment and
economic environment to which the company is exposed to. It will further discuss regarding
the external factors if any potential merger or acquisition takes place for the company. It will
highlight the ethical factors those will be taken into consideration in case the company seems
to be heading towards insolvency. In the final section, based on the above mentioned factors
and interpretation appropriate recommendations will be provided focussing mainly on the
fact that whether the company is a profitable investment or not (Resolute, 2018).
1.1 Background and business
Resolute Mining is the successful gold miner that is engaged in the business for more
than 28 years. It has experience as developer, operator and explorer of the gold mines in
Africa and Australia. It operates 9 gold mines that produce gold more than eight million
ounces. It owns 3 gold mines named as Syama gold mines in Mail (Syama), Bibiani gold
mine in Ghana (Bibiani) and Ravenswood gold mine in Australia (Ravenswood). The
company is robust, world class and capable of long-life asset production for more than
300,000 ounce gold per year from the existing infrastructure of processing. Further, the
company is now developing world’s 1st fully automated underground mine at Syama that will