Perseus Mining Ltd (ASX:PRU, TSX:PRU, OTC:PMNXF) is “in an excellent position” to grow its gold exploration business further and may even return capital to shareholders after adding US$72 million to the company’s cash and bullion coffer to a total of US$594 million in the September quarter.
Despite challenging weather conditions in West Africa, the company’s three operating gold mines, Yaouré and Sissingué in Côte d’Ivoire, and Edikan in Ghana produced 132,804 ounces of gold during the quarter.
This is only marginally lower than the record 136,634 ounces of gold produced in the previous quarter.
Show me the numbers
The Africa-focused gold producer sold 115,954 ounces of the yellow metal during the quarter, about 17.5% less than in the prior quarter due to the timing of sales, but the average sale price of US$1,936 per ounce was US$3 per ounce higher than the June quarter price.
Average production cost across all three operations was US$805 per ounce, while the average all-in sustaining cost (AISC) was US$937 per ounce of gold, an improvement of US$6 per ounce and US$70 per ounce, respectively, compared to the June quarter.
Perseus’ average cash margin for the September quarter was US$999 per ounce of gold sold, 8% better than the US$926 per ounce achieved during the previous quarter.
Meanwhile, notional cashflow from operations was US$132 million, US$5 million more than the June quarter, driven by the improved gold price achieved and lower AISC.
With zero debt and a strong set of results, Perseus believes it is one of the world’s higher-performing mid-tier gold producers to date.
Financially robust
“This quarter, Perseus has produced another excellent operating performance with the group’s gold production and AISC outperforming internal targets, placing the company on a firm footing to, once again, achieve or potentially outperform market guidance for the current half-year period ending December 31, 2023,” Perseus managing director and chief executive Jeff Quartermaine said in a quarterly review.
“During the quarter, we also reported adding more ounces of gold to our gold inventory than we depleted through mining activities in the preceding 12-month period.
“At Yaouré, our flagship gold mine, not only have we demonstrated our ability to grow our business through organic means by increasing JORC-compliant ore reserves and mineral resources, but we have also extended its operating life to 2035 by adding an underground mining operation to the existing open pit operation.
READ: Perseus Mining extends Yaouré life of mine gold plan by 12 years until 2035
“Our cash balance continues to grow. This quarter, we have added US$72 million to our cash and bullion balance increasing it to US$594 million.
“We have zero debt and US$300 million of undrawn debt capacity.
“As a result, we are in an excellent position to either continue to grow our business through organic or inorganic means, or actively return capital to shareholders, should this prove to be a more appropriate use of funds,” Quartermaine added.