Perseus Mining posted a robust performance as gold throughput from the operations of its combined mining sites, has produced 112,786 ounces of gold in Q3 2021.
This increase in gold output represents a 10 per cent rise from that of end-Q2 2021 and up 28 per cent at end-Q1 2021. The Company’s three operating gold mines include Yaouré and Sissingué in Côte d’Ivoire, and Edikan in Ghana.
Among the three mines, Yaouré Gold Mine was the major contributor to the Group’s strong quarterly result. It produced 64,558 ounces of gold at an All-In-Sustaining Cost of US$671 per ounce, generating notional cashflow of US$65.8 million.
Perseus also noted that exploration programmes on its Nkosuo prospect near Edikan and the CMA underground prospect at Yaouré returned excellent drill results.
The weighted average production costs at the operations were US$857 per ounce, while a weighted average All-In-Sustaining Cost (AISC) of US$966 per ounce of gold was recorded by the Group during the quarter. These costs were 7 per cent and 8 per cent respectively lower than comparative costs incurred in the previous quarter.
Gold sales from all three operations totalled 107,650 ounces, 1 per cent more than last quarter. The weighted average gold price realised from sales of gold during the quarter was US$1,655 per ounce, slightly more than the price received in Q2 2021.
Perseus’s average cash margin for the third quarter was US$689 per ounce, US$84 per ounce or 15 per cent more than that achieved during the second quarter. Notional operating cashflow from operations was US$77.8 million, US$15.7 million or 26 per cent more than that generated in the prior period.
“Perseus has continued to strengthen its strong sustainability performance relative to our safety, social and environmental objectives and targets.”
Performance of Edikan and Sissingué Mines
Moreover, this was driven by quarter-on-quarter production growth of 10 per cent derived largely from the strong production performance at Yaouré, combined with a commensurate decline in AISC at that mine.
Gold production in the Edikan Mine in Ghana posted 32,161 ounces of gold, 24 per cent less than recorded in the second quarter. Gold sales of 29,345 ounces were 32 per cent less than in the prior quarter, at a weighted average realised gold price of US$1,602 per ounce.
This generated a cash margin of US$28 per ounce, and notional cashflow of US$0.9 million, US$16.5 million less than in the prior period. In short, this was a substandard performance by the Edikan mine relative to expectations.
Furthermore, Sissingué in Côte d’Ivoire, registered a more than expected 16,067 ounces of gold at a production cost of US$830 per ounce and an AISC of US$931 per ounce. The weighted average sales price of 18,250 ounces of gold sold during the quarter was US$1,624 per ounce. This amounted to cash margin of US$693 per ounce.
Notional cashflow generated from the Sissingué operations amounted to US$11.1 million for the quarter, US$9.4 million. This was less than in the prior quarter largely due to the planned reduction in head grade, thus increasing AISC. Also, a 31 per cent decrease in gold production during the period as well as a marginally lower realised gold price led to this decline.
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