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Gold & silver

Perseus Mining major shareholder Franklin Resources increases stake to nearly 10%

The gold producer expects to comfortably achieve its half-year guidance after a strong March quarter.

Perseus Mining Ltd (ASX:PRU) substantial shareholder Franklin Resources Inc has purchased nearly 20 million shares in the company, bringing its total holding to 102,490,902 shares.

The transaction leaves Franklin Resources with a 9.45% interest in Perseus, which includes nearly 1.1 million shares outstanding.

Perseus produced 67,144 ounces of gold in the March quarter at an all-in sustaining cost (AISC) of US$851 per ounce.

The majority of the gold was produced from the Edikan mine in Ghana and the rest from the Sissingué mine in Cote d’Ivoire.

Group gold production is on track to achieve the June 2019 half-year guidance of 130-150,000 ounces, as well as achieving cost guidance within an AISC range of US$850-$1,000 per ounce.

The company’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.

Cash and bullion on hand at March 31 amounts to US$80.8 million, which together with debt reductions to US$44.5 million puts Perseus in a net cash and bullion position of US$36.3 million.

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