Perseus Mining Limited (ASX:PRU) (TSE:PRU) (FRA:P4Q) (OTCMKTS:PMNXF) strong market performance has been recognised with the company being added to the S&P/ASX All Australian 200 Index.
This change will be effective at the open of ASX trading on December 23, 2019.
The West African gold producer, which is developing its third mine, has been trending higher on the back of strong gold prices, improved operational stability and a diversified production base.
New six-year high
Last Friday the company reached a new six-year high of $1.075 while yesterday the securities closed at $1.00.
The company’s market cap is also reflecting the growth and it now stands at approximately $1.168 billion.
Changes in S&P/ASX indices
S&P Dow Jones Indices have announced today the changes in the S&P/ASX indices, effective at the open of trading on December 23, 2019.
At this rebalance, the S&P/ASX 200 index hierarchy and the S&P/ASX All Australian indices were reviewed.
S&P Dow Jones Indices is the largest global resource for essential index-based concepts, data and research, and home to iconic financial market indicators, such as the S&P 500® and the Dow Jones Industrial Average®.
West African position
Perseus operates two gold mines in West Africa, Edikan and Sissingué, is developing its third mine Yaouré and is leveraged to the growing resource at Mako Gold Ltd’s (ASX:MKG) Napié project through its 49% ownership.
The company’s share price has outperformed most of its gold producer peers in recent months.
Since the 2018 annual general meeting, the net cash position has improved from $68 million at the 2018 AGM to $125 million which positions the company to continue its growth story in 2020.
On track for guidance
Perseus is on track to meet its 2020 financial year guidance of 260,000 to 300,000 ounces at an AISC of US$800-975 per ounce.
It has set a target of annual production of 500,000 ounces which will be made possible when Yaouré comes online by the end of 2020 along with ongoing and successful exploration.
The Yaouré project in Côte d'Ivoire is expected to produce at least 228,000 ounces annually.
Yaouré mining services contract
This week Perseus awarded a mining services contract for Yaouré to EPSA Internacional SA (EPSA), a privately owned, global earthmoving and mining contractor that is headquartered in Spain.
The contract will run for 65 months from November 1, 2020, and envisages the movement of around 170 million tonnes of material, including 27 million tonnes of ore containing more than 1.5 million ounces of gold.
ESPA is expected to begin mobilising equipment to site in the March 2020 quarter after which it will employ and train a predominantly Ivorian workforce in preparation for the formal start of the contract later in the year.