Resolute Mining Ltd (ASX: RSG) shares are having a tough finish to the week.
In morning trade on Friday, the ASX 200 gold stock is down 14% to $1.03.
Why is this ASX 200 gold stock sinking?
Investors have been selling the ASX 200 gold stock after it released an operational update for its Syama Gold Mine in Mali.
According to the release, production during the second quarter of FY 2026 has been impacted by logistical and supply chain disruptions.
These disruptions developed over the past four weeks following significant security challenges in Mali during late April and May.
As a result, Resolute now expects Syama's second-quarter gold production to be around 30,000 ounces. This is well short of its original expectation of 40,000 ounces to 45,000 ounces.
While the company has not withdrawn its full-year guidance, it now expects Syama production to be around the lower end of its 195,000 ounces to 210,000 ounces guidance range in FY 2026.
That guidance disappointment appears to be weighing heavily on Resolute Mining shares today.
What went wrong?
The main issue has been delays in receiving key equipment needed to mine higher-grade sulphide ore zones within the A21 open pit.
Resolute said this was due to road insecurity in parts of Mali.
There have also been issues underground, where grades have been lower than expected. This was blamed on intermittent blasting performance and temporary disruption to explosives supply following the recent security situation.
Because of this, the sulphide mill feed has relied more heavily on lower-grade stockpiles.
Adding to the disruption, Resolute has deferred a planned three-week shutdown of the sulphide plant and roaster from May to mid-June. It has also extended the shutdown by one week to complete additional preventative maintenance work.
What is Resolute doing about it?
The ASX 200 gold stock has taken a range of actions across mining, processing, and planning to support operational continuity.
This includes working with open pit contractors to ensure equipment is delivered by the end of the maintenance shutdown.
Resolute is also increasing underground development capacity, securing additional operators, and accelerating open pit mining to access higher-grade fresh ore.
The good news is the company expects production to improve as access to higher-grade ore is restored and the security situation stabilises.
Commenting on the news, the ASX 200 gold stock's CEO, Chris Eger, said:
Recent performance at Syama has been below expectations despite the significant changes implemented in Mali. These issues are well understood, and our focus is on stabilising operations and restoring consistent performance.
Importantly, the broader business continues to perform well. The Company remains cash generative, supporting ongoing investment in growth, including the Doropo development, which continues to progress to plan.
It isn't all bad news
There was better news elsewhere in the portfolio.
Resolute said production from stockpile processing at the Mako operation in Senegal remains on track with full-year guidance.
Construction of the Doropo Gold Project in Côte d'Ivoire also remains on schedule.
However, this was clearly not enough to offset the disappointment at Syama.
The post Guess which ASX 200 gold stock is crashing 14% on guidance disappointment appeared first on The Motley Fool Australia.
Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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