Company
ASX:PRU
Perseus Mining Ltd (PRU:ASX) operates three gold mines in Africa: Edikan in Ghana, Sissingué and Yaouré in Côte d’Ivoire. The company acquired Orca Gold and now owns 70% of the Meyas Sand Gold Project in Sudan (formerly 'Block 14 Development Project').
212 stories · page 5 of 11
Perseus is on track to deliver on its plan of producing more than 500,000 ounces gold per annum from FY2022, with each of its Edikan, Sissingue and Yaoure gold mines in production and producing to plan.
Cormack Securities is confident that company has a strong free cash flow and production growth on tap, with Yaouré set to achieve commercial production in March or April this year.
In the six months to December 31, 2020, it produced a total of 137,386 ounces of gold, 2% more than in the corresponding six-month period in 2019.
The year in review: 2020 was a rollercoaster 2020 for miners, as gold and commodities caught the virus dip and then the stimulus wave.
In good news for Australian producers, consultancy S&P Global says all-in sustaining costs of mining the precious metal will hit an eight-year low.
The gold miner expects to declare commercial production at Yaouré next quarter and is on track to increase overall annual production to at least 500,000 ounces by financial year 2022.
The commissioning and ramp-up of production at Yaouré is a major objective for the company heading into 2021.
Looking ahead, commissioning and ramp-up of production at Yaouré is a major objective for the coming months.
The company’s Edikan and Sissingué mines in West Africa continued to perform strongly in the September 2020 quarter relative to the prior quarter, with gold production up 6% to 68,772 ounces.
Gold recorded a spectacular performance during the third quarter, soaring to an all-time high of US$2,067/oz in early August.
Gold production and cost guidance for the December 2020 half year remains unchanged at 125,500 to 139,000 ounces at an all-in sustaining cost of US$940 to US$1,025 per ounce.
The gold producer has also outlined plans to extend the future of both of its operating West African mines
With Yaouré coming online, Perseus’ production levels from FY2022 should be around 500,000 ounces of gold per year.
The company now intends to undertake a definitive feasibility study (DFS), including drilling from next month, to confirm the technical and financial viability of a development concept.
The West African gold producer recorded a net profit after tax of A$94.4 million in FY20 compared to a net profit after tax of A$7.6 million in the previous financial year.
Perseus will gain a dominant gold landholding in Cote d’Ivoire following the acquisition of Exore with 2,000 square kilometres of exploration ground within trucking distance to the Sissingué operations.
This move follows the approval for the scheme agreement by Exore shareholders on September 10.
Perseus is expected to deliver over $1.4 billion in free cash flow over the next 5 years as the company’s third gold mine, Yaouré, remains on track for first production by late 2020.
The company operates two gold mines – Edikan in Ghana and Sissingué in Côte d’Ivoire - and is developing its third operation Yaouré in Côte d’Ivoire.
Despite mining depletion of over three hundred thousand in situ ounces in the last 12 months, Perseus’s total ore reserves have incrementally increased.
