Perseus Mining Ltd (ASX:PRU, TSX:PRU, OTC:PMNXF) continues to be one of the leading gold producers when it comes to low corporate all-in costs (CAIC), according to a report from Euroz Hartleys.
CAIC takes into account all costs, with the exception of capital expenditure on new production centres, adjusting for equity raised and dividends paid.
The positive view of PRU from Euroz Hartleys comes as the gold sector continues to contest ongoing cost pressures further squeezing margins, with no signs of easing in the short term.
Encouragingly, some of the miners like Perseus are better able to weather the conditions, highlighted by their low CAIC.
Low CAIC producers
Apart from PRU, the Euroz Hartley report on gold producers also mentioned WAF (West African Resources) as leading the pack with the lowest CAIC per ounce.
"Another low CAIC producer is EMR (Emerald Resources), which comes as no surprise to us given it has now ramped up production from its Cambodian gold mine. We see EMR maintaining this low position on the CAIC curve.
"Out of the Australian producers, CMM (Capricorn Metals) was the lowest producer for the second consecutive quarter.
"We see potential for both RMS (Ramelius Resources) and GOR (Gold Road Resources) to move their way down the CAIC cost curve over the short to medium term."
Euroz Hartley also stated: "The ongoing skilled labour shortage is becoming a primary focus of many gold producers, particularly with a number of gold developers commencing production (CAI, RED and PNR)."
About Perseus
Perseus is focused on discovering, acquiring and developing a portfolio of quality gold producing assets in Africa.
The company operates three gold mines in West Africa: Edikan in Ghana and Sissingué and Yaouré in Côte d’Ivoire, and owns the Block 14 Development Project in Sudan.
Perseus’ exploration activities are focused on extending the company’s ore reserve inventory at and around our existing operations in Ghana and Cote d’Ivoire as well as discovering new development opportunities elsewhere in Africa.
Orca Gold acquisition
Perseus has been working closely with Orca Gold management to plan the integration of the two companies and enable the development of Orca's Block 14 Gold Project, which the companies plan to act on as soon as possible.
According to Cormark Securities Inc, Block 14 has some of the best potential of any undeveloped gold deposit in Africa, forecast to produce 228,000 ounces of gold per year at US$751 per ounce, with an estimated capital expenditure/AISC (all-in sustaining cost) of US$321 million.
In latest news, the company has provided relevant materials and information for a special meeting of Orca shareholders, scheduled to provide a final decision on the acquisition of all outstanding common shares by Perseus.