Perseus Mining recorded output growth in Q1 2022, rising by 2 per cent to 130,523 ounces of gold from its three mines in Yaouré and Sissingué in Côte d’Ivoire, and Edikan in Ghana.
The weighted average production cost incurred during the quarter was $789 per ounce, while average all-in sustaining cost (AISC) was $908 per ounce of gold. Both production costs and AISC were below 5 per cent (4 per cent and 3 per cent respectively) lower than the previous quarter.
Following these strong operating results, the gold miner maintained the production or cost guidance for the June 2022 half year of 230,000 to 265,000 ounces of gold produced at an AISC of $915 to $1,085 per ounce.
“On a year-to-date basis, gold production at our three mines totals 371,687 ounces of gold, produced at a weighted average of AISC of $934 per ounce. No change has been made to either production or cost guidance for 2022…”
Report
In its Q1 2022 report, Perseus noted that sales from all three operations (Yaouré and Sissingué in Côte d’Ivoire, and Edikan in Ghana) totaled 131,044 ounces, 0.4 per cent more than that last quarter. The weighted average gold price realized was $1,701 per ounce, 2 per cent better than the price received in the December 2021 quarter.
Perseus’s average cash margin for Q1 2022 was $793 per ounce, $59 per ounce or 8 per cent more than that achieved during the December 2021 quarter. Notional cashflow increased from operations was $104 million, $10 million or 10 per cent more than that generated in the prior period derived largely from improved production and cost performance at the Yaouré and Edikan mines.
Perseus Mining Achieves Strong Operating Performance
With this strong performance, Perseus Mining also noted that its operating performance was consistently in line with Environmental, Social and Governance (ESG) KPIs. That said, Perseus’s growth activities delivered excellent results, with a material increase in the gold miner’s Ore Reserves inventory and in extension, the economic mine lives of our operations.
As highlighted above, the company further indicated that, in the course of quarter, the prospects of the proposed acquisition of Orca Gold Inc. to its portfolio of assets was to ensure sustained growth.
Furthermore, the company noted that this was based on a Plan of Arrangement, which when complete, will result in the ownership of the undeveloped long-life Block 14 Gold Project in Sudan, and an indirect 31.4 per cent interest in the Koné Gold Project.
“A general meeting of Orca’s shareholders is scheduled to be held on May 16, 2022 to consider the Arrangement. Assuming the requisite approvals are obtained at the meeting, completion is expected to occur on May 19, 2022 when Perseus’ shares will be issued to Orca shareholders.”
Report
Perseus Mining also noted that the updated Life of Mine (LOM) Plan for the Sissingué processing operation extended the life of that operation to full year 2026. Additionally, exploration programmes at the Nkosuo prospect near Edikan and the CMA Underground prospect at Yaouré both returned excellent drill results, confirming the potential for strong organic growth of each mine.
Perseus’s financial position continues to strengthen with available cash and bullion of $278 million, debt of $50 million, and net cash of $228 million at March 31, 2022, $66 million more than last quarter. According to the report, Perseus paid an interim dividend amount of 0.81 Australian cents per share to the shareholders, following the end of the quarter.
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