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Perseus Mining guides to production growth as gold hits US$1,600

Perseus produces gold from the Edikan mine in Ghana and Sissingué mine in Côte d'Ivoire.

Perseus Mining Ltd - Perseus Mining guides to production growth as gold hits US$1,600
It aims to produce gold from a third mine later this year, Yaouré in Côte d'Ivoire

Perseus Mining Ltd (ASX:PRU) produced 134,980 ounces of gold in the December half at a weighted average all-in site cost (AISC) of US$942 per ounce.

With the spot gold price trading at around US$1,600 per ounce, the company's high-margin gold mining operations are very evident.

The company posted a 193% increase in net profit after tax to $30.4 million and a 43% increase in EBITDA from operations to $123.9 million.

At 31 December 2019, cash and bullion on hand totalled $114.9 million and net assets were $808.7 million.

Maintains guidance for FY20 production

Perseus has maintained that it expects to produce 140,000-160,000 ounces at US$750-950 AISC per ounce in the current June half resulting in 275,000-295,000 ounces at US$850-950 AISC per ounce for the full FY20.

Proactive caught up with the company to discuss the result.

Perseus’s CEO and managing director Jeff Quartermaine said: “The financial results released by Perseus today reveal a company that is in a robust financial position and one that is continuing to improve both operationally and in terms of growth prospects.

Quartermaine’s result recap

“At $125.8 million, our gross profit from operations before depreciation and amortisation in the December 2019 Half Year was materially better than in the past.

“After depreciation and amortization and other charges were brought to account, our reported net after tax earnings for the six-month period of $30.4 million were $20.0 million more than the amount earned in the corresponding period last year, representing a major turn-around in our business.

New Yaouré gold mine to produce first gold late-2020

“Excluding $47.4 million of bullion on hand, our cash balance at the end of December 2019 was $67.5 million, slightly more than the amount at the end of 2018, notwithstanding the large investment (US$99 million to date) that has been made during the year in the development of our third gold mine, Yaouré, which at year end was approximately 33% complete and is now expected to produce first gold in December 2020.

“Our strong cashflows have largely been driven by unit cost reductions and of course an improvement in the price of gold.

“Perseus is in great shape due to the hard work of many and we are looking forward to maintaining our forecast growth trajectory and continuing to generate material benefits for all of our stakeholders in coming periods.”

Quick facts: Perseus Mining Ltd

Price: 0.97 AUD

ASX:PRU
Market: ASX
Market Cap: $1.13 billion
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Perseus Mining registers golden half-year with net profit after tax up 193%

Perseus Mining Limited (ASX:PRU) (TSE:PRU) (OTCMKTS:PMNXF) CEO and managing director Jeff Quartermaine updates Proactive on the West African gold producer’s strong half yearly performance. The company produced almost 135,000 ounces of gold at around US$942 an ounce resulting in the generation...

on 19/2/20

3 min read