Perseus Mining Ltd (ASX:PRU, TSX:PRU, OTC:PMNXF)’s three operating gold mines, Yaouré and Sissingué in Côte d’Ivoire, and Edikan in Ghana have combined to produce a total of 128,378 ounces of gold in the December 2021 quarter, 14% more than in the prior quarter.
The weighted average production cost at the operations was US$823 per ounce, while the weighted average AISC (all-in sustaining cost) incurred during the quarter was US$934 per ounce of gold.
Production costs and AISC’s were 4% and 3% respectively, lower than comparative costs in the previous quarter.
This performance contributed to half-yearly gold production at the company’s three mines of 241,164 ounces of gold, produced at an average AISC of US$949 per ounce.
This strong performance compared favourably to market guidance for the half-year of 225,000 to 255,000 ounces of gold produced at an AISC of US$925 to 1,025 per ounce and has positioned Perseus to achieve its corporate objective of producing more than 500,000 ounces of gold at a margin of greater than US$400 per ounce in FY2022.
Combined gold sales from all three operations totalled 130,486 ounces, 21% more than last quarter.
The weighted average gold price realised was US$1,669 per ounce, slightly better than the price received in the September 2021 quarter.
Perseus’s average cash margin for the December 2021 quarter was US$735 per ounce, US$46 per ounce or 7% more than that achieved during the September 2021 quarter.
Notional operating cash flow from operations was US$94.3 million, US$16.5 million or 21% more than that generated in the prior period, driven by quarter-on-quarter production growth of 14%, derived largely from improved production performance at all three mines, combined with improved AISCs at Sissingué and Edikan.
Production and cost guidance
Perseus achieved yet another strong quarter of cash generation, with a US$66.0 million increase in its overall net cash position relative to the prior quarter.
The Yaouré Gold Mine continued its strong cash generation performance, with comparable performance to Q1 achieved by Sissingué and a noticeable improvement by Edikan.
Perseus’s total value of cash and bullion on hand at the end of the quarter was A$292.0 million, (US$212.1 million) including cash of A$268.6 million (US$195.1 million) and 9,342 ounces of bullion on hand, valued at A$23.4 million (US$17.0 million).
Debt repayment of A$68.3 million (US$50.0 million) was made during the quarter, reducing the principal amount owing to US$50.0 million.
Notional operating cashflow