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Perseus Mining quarterly production confirms on track to meet guidance

The cash flow generated from the quarter was more than double the prior December quarter.

Chart of Monthly balance of cash and bullion, interest-bearing liabilities and net cash and bullion
The average sale price of the gold produced from its two mines was US$1,284 per ounce

Perseus Mining Ltd (ASX:PRU) has confirmed that it produced 67,144 ounces of gold in the March quarter at an all-in site cost (AISC) of US$851 per ounce.

The majority (66.5%) of gold was produced from its Edikan mine in Ghana with the balance (33.5%) produced from the Sissingué mine in Côte d’Ivoire.

Group gold production is on target to achieve June 2019 half year production guidance of 130-150,000 ounces and AISCs are also on track to achieve cost guidance of US$850-US$1,000 per ounce.

Perseus’s weighted average cash margin of US$433 per ounce during the quarter generated notional cash flow of US$29.1 million, more than double that of the prior quarter.

READ: Perseus Mining’s warrant underwriting agreement could raise $45 million

With US$80.8 million in cash and bullion on hand at 31 March and debt being reduced to US$44.5 million, the company is in a net cash and bullion position of US$36.3 million.

This places the company in a strong financial position as it continues with its progress to develop its third gold mine, Yaouré, also in Côte d'Ivoire.

Financing plan in place

An offer by a banking syndicate to provide a US$150 million cash advance facility to partially fund the development of Yaouré was accepted earlier this month.

Yaouré’s financing plan will be fully funded by debt, existing cash and bullion, future operating cash flows, and proceeds from the exercise or underwriting of Perseus warrants.

Perseus’s CEO and managing director Jeff Quartermaine said: “The agreement on the terms of the debt facility with our banking syndicate was a critical step that needed to be completed to enable the development of the Yaouré Gold Mine.

Yaouré has untapped potential

He added: “As a management team we believe that the Mineral Resources and Reserves reported to date represent a proportion of the potential of this property.

“We are looking forward to the challenge of, firstly, developing Yaouré on time and on budget and then operating the gold mine in line with expectations.

“In addition to this, we recognise the enormous untapped exploration potential within the Yaouré tenements and with access to funding we expect to be able to materially add to the expected life and value to investors of this operation.”

Quick facts: Perseus Mining Ltd

Price: 0.74 AUD

ASX:PRU
Market: ASX
Market Cap: $864.31 m
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