Perseus Mining Ltd (ASX:PRU, TSX:PRU, OTC:PMNXF) has achieved another quarterly gold production record with 112,786 ounces of gold produced in the September quarter, up 10% from June quarter and 28% on March quarter of this year, on the back of strong production at its Yaouré mine in central Côte d’Ivoire.
The company has also committed to robust Environmental, Social and Governance initiatives, especially in regard to protecting the environment and delivering local employment, education and enterprise.
Perseus is a rapidly growing West African gold explorer, developer and producer. The company operates three mines (Yaouré, Sissingué, and Edikan) and expects annual gold production to reach more than 500,000 ounces per year by 2022.
Quarterly update
Perseus’ average all-in site costs (ASIC) have dropped to their lowest for the financial year, at just US$966 per ounce, US$81 per ounce or 8% less than in the last quarter. Weighted average production cost is also down from last quarter, constituting just US$857 per ounce of gold.
Gold sales increased to 107,650 ounces at an average realised gold price of US$1,655 per ounce, producing a weighted average cash margin of US$689 per ounce of gold produced.
Group gold production and AISC market guidance remain unchanged for the December 2021 half-year at 225,000 to 255,000 ounces at an ASIC of US$925 to US$1,025 per ounce.
Total notional cashflow from all of Perseus’ operations was US$77.8 million, US$15.7 million or 25% more than the June quarter of 2021.
As of September 30, 2021, Perseus’ had available cash and bullion on hand of US$196.2 million and debt of US$100 million, giving a net cash position of US$96.2 million, US$40.1 million more than at the end of last quarter.
The Yaouré Gold Mine was a strong contributor to Perseus’ quarterly result, producing 64,558 ounces of gold at an AISC of US$671 per ounce, generating notional cashflow of US$65.8 million.
Exploration program update
Work at the CMA Underground prospect focused on infill drilling to firm up previously defined underground resources extending below the currently planned CMA pit.
Perseus defined an inferred mineral resource of 1.8 million tonnes grading 6.1 g/t gold, extending to a maximum 275 metres down dip beneath the open pit resource with potential to extend mineralisation further down dip beyond this.
Read: Perseus Mining confident of Yaouré gold inventory growth after latest drilling success
Drilling is now also underway at Nkosuo and will focus on closing the current hole spacing to 40 x 40 metres and eventually to locally 20 x 20 metres, to support a maiden mineral resource estimate to be undertaken in the March 2022 quarter, with further results to be released as they come to hand.
Initial assays of note consisted of 32 metres at 2.61 g/t from 23 metres and 5 metres at 21.22 g/t from 229 metres.
Read: Perseus Mining finds exploration success in Ghana amid Nkosuo prospect drilling
Sustainability ESG update
As COVID-19 spread in waves through West Africa, Perseus continued to update its critical controls, with a focus on keeping its people safe and well, maintaining safe and stable operations and supporting its host governments and local communities.
The company is progressing vaccination campaigns at its projects, with 25% of employees and contractors partially or fully vaccinated at Yaouré. Perseus is continuing efforts to pursue vaccination for its employees and contractors as vaccines become available under government programs.
During the quarter, Perseus continued to strengthen its sustainability governance by:
- Releasing its third consolidated sustainability report, for the period July 1, 2020, to June 30, 2021, aligned the company’s Sustainability Report with its Annual and Financial Reporting cycle.
- Broadening its reported sustainability metrics in its FY2022 business performance scorecards (linked to executive remuneration) beyond safety to also include social and environmental metrics.
- Completing external assurance of its FY2021 sustainability data and advancing its alignment with the World Gold Council Responsible Gold Mining Principles, starting with a review of the company’s health, safety and social risks and its control and governance.
- Developing Perseus’ three-year sustainability strategic plan to strengthen the company’s financial value and grow its social value by actively supporting the countries in which it operates to advance their progress on the United Nations Sustainable Development Goals.
Social initiatives
Perseus has made economic contributions to its host countries of Ghana and Côte d’Ivoire of around US$125 million (70% of revenue), included approximately US$100 million paid to local suppliers, US$11 million paid as salaries and wages to local employees, US$15 million in payments to government as taxes, royalties and other payments, and US$430,000 in social investment.
Local and national employment was maintained at 95% of Perseus’ total direct workforce with no fatalities across operations and zero significant community issues.
On the environmental front, scope 1 and 2 greenhouse gas emissions and water use per ounce of gold produced continued to decrease as production at Yaouré ramped up.
Perseus undertook a study investigating the potential for replacing the diesel-fired back-up generators at Yaouré with a longer-term power solution involving the use of renewable energy sources. The study will also assess the benefits of partially replacing the grid with renewable energy sources.
To cap off a strong quarter, no environmental events or tailings damn integrity issues occurred during the period.