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Perseus posts another 'satisfying' result

Perseus Mining has notched up another solid performance ahead of a big year for the growing West Africa producer.
Perseus posts another 'satisfying' result Perseus posts another 'satisfying' result Perseus posts another 'satisfying' result Perseus posts another 'satisfying' result Perseus posts another 'satisfying' result

Perseus Mining's Edikan mine in Ghana

The Edikan mine in Ghana and Sissingue mine in Cote d'Ivoire produced 69,155 ounces of gold at all-in sustaining costs of US$962 an ounce, bettering Citi's forecast of 67,000oz at $924/oz.

Perseus managing director Jeff Quartermaine described December as a "satisfying" quarter.

"It's the 12th consecutive quarter where we've hit our targets very nicely," he said on a conference call.

"Our success is starting to be reflected in our share price."

Perseus shares are up 170% over the past 12 months.

Half-year production of 134,980oz at AISC of $942/oz was within guidance of 120,000-140,000oz at AISC of $850-1000/oz.

Guidance for the June half is 140,000-160,000oz at AISC of $750-950/oz.

Perseus' margin for the December quarter was $453/oz - above its target of $400/oz.

Notional cashflow for the quarter was $31.3 million.

Perseus is building its third mine, Yaoure in Cote d'Ivoire, with Quartermaine confident the company can achieve its "stretch target" of first gold by December 2020.

At December 31, the company had committed $165.5 million of the $265 million capital cost, and paid for $99.3 million.

Quartermaine pointed out that with a December 31 cash balance of $80.6 million and undrawn debt facilities of $100 million, the company was "more than fully covered" to complete the project, without accounting for 2020 cashflow.

Perseus' technical team have been working on updated life-of-mine plans for Edikan and Sissingue.

Pits are being optimised at $1,300/oz versus the previous $1,200/oz.

The results of the work are due to be reviewed by the board this quarter and if approved, will result in updated ore reserves and LOM plans.

Quartermaine flagged a material extension to Edikan's six-year LOM.

"That is something that's certainly worth waiting for," he said.

The company is also planning to bolster exploration efforts.

"We've put a lot of thought into developing an organic growth strategy for Perseus, revolving around exploration," Quartermaine said.

Perseus spent $4.4 million on exploration in the December half, but Quartermaine flagged a $15 million spend this year, focusing on Yaoure.

Shares in Perseus opened 0.4% higher at A$1.085. The stock hit a six-year high of $1.17 earlier this month.