2011 Media Releases

Deutsche Bank (XETRA: DBKGn.DE / NYSE: DB) has initiated coverage of gold producer Resolute Mining (ASX: RSG), with a Buy recommendation.

Research analyst Brendan Fitzpatrick said, “Resolute has the largest gold output of the ASX mid-cap gold producers but has lagged behind its peers. It operates three mines – Syama in Mali, Ravenswood in Australia and Golden Pride in Tanzania with Syama its core asset. Following an equity raising in November 2010, the company is unhedged. It is targeting a strong production profile that will see the focus turn to the Syama operations.

Deutsche Bank believes that while Syama was hampered by mechanical issues in 2010, the mine is now ready to deliver on its potential. Its orebody requires a complex processing technique but it has been proven to work as it is now processing ore at the design rate of 2.4 mega tones per annum.

Fitzpatrick said, “We certainly acknowledge that operational underperformance has been an issue in the past; but with the ore roaster once again active, the throughput rate at design levels and a step up in grade coming later this year, we are of the view that this asset is ready to finally deliver. We have applied a discount when setting the target price but still see upside in the equity.”

Resolute Mining is a developer and operator of quality gold projects. Since its inception in 1979, the company has produced over 5.5 million ounces of gold. FY10 production was 352 thousand ounces at a cash cost of AUD 746 per ounce.

For further information, please contact:

Deutsche Bank AG    
Name : Michelle Chaperon   
Phone: +61 (0) 2 8258 1311
E-Mail: michelle.chaperon@db.com