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Perseus Mining records strong gold production at attractive cash margins

Published 23/10/2024, 09:59 am
© Reuters.  Perseus Mining records strong gold production at attractive cash margins

Perseus Mining Ltd (ASX:PRU, TSX:PRU, OTC:PMNXF) has delivered strong production from its three operating gold mines in the September quarter, Yaouré and Sissingué in Côte d’Ivoire and Edikan in Ghana, with a combined 121,290 ounces of gold produced.

Perseus says the strong operating results “confirm once again Perseus’s position as one of the world’s better performing mid-tier gold producers.”

The company’s weighted average production cost was US$990 per ounce, while the weighted average AISC was US$1,201 per ounce of gold.

During the quarter combined gold sales from the three operations totalled 108,895 ounces, which was 33,035 ounces fewer than in the June quarter due to the timing of gold sales. The realised gold price averaged US$2,249 per ounce, which was US$132 per ounce more than the Q4 FY24.

Perseus’s average cash margin for Q1 2025 was US$1,048 per ounce, delivering operating cashflow of US$127 million, or US$10 million more than in the prior quarter.

The company’s performance resulted in a cash and bullion balance at the quarter end of US$643 million.

Looking ahead, gold production and AISC remains on track to achieve market guidance for the December 2024 half-year (1H FY25) and 2024 calendar year. Guidance remains unchanged at 220,000 to 260,000 ounces at US$1,230 to US$1,330 per ounce for H1 FY25 and 468,400 ounces to 508,400 ounces at US$1,182 to US$1,223 per ounce for CY24.

In addition to its producing assets, Perseus continued work on its two development projects — the CMA Underground project at Yaouré and the recently acquired Nyanzaga Gold Project in Tanzania.

Nyanzaga Gold Project

Since it acquired the Nyanzaga Gold Project in northern Tanzania in the June quarter, Perseus has been actively engaged with all levels of government in Tanzania to advance the project towards a final investment decision (FID) by the year’s end.

Perseus has shared with the government the project development timeline of around 24 months post-FID with the aim of first gold production during the first quarter of 2027, and the government has committed to support Perseus as required to achieve this timeline.

Works continues at Nyanzaga and the company expects to release its first mineral resources and ore reserves estimates for the project during Q3 FY25.

CMA Underground,  Yaouré

Perseus completed an underground feasibility study of the Yaouré CMA orebody last August, proving the technical and economic viability of underground mining of the CMA orebody.

When developed, the CMA underground mine will be the first underground mine in Côte d’Ivoire.

Perseus has been actively working with the country’s Minerals Commission to help establish the regulatory framework that is due for release by the Ministry by the end of 2024.

During Q1 FY25, Perseus continued work on constructing additional accommodation at the Yaouré camp to accommodate the underground workforce and progress detailed design of underground mine plans, services and infrastructure.

Exploration activities

In addition, the company continued to undertake exploration activities in Côte d’Ivoire and Ghana, as well as in Tanzania and Sudan, that were aimed at making new discoveries and adding to the company’s mineral resources and ore reserve inventories.

Read more on Proactive Investors AU

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