JOHANNESBURG (miningweekly.com) – West Africa-focused gold miner Perseus Mining has made an operational turnaround, which is reflected in the company’s interim financial performance.

Although posting a net loss of $11.5-million, or 1.18c a share, for the December 2017 half-year, Perseus reported significantly improved earnings before interest, taxes, depreciation and amortisation (Ebitda) of $34.8-million, compared with a comparative-period loss of $15.7-million.

Ebitda, excluding foreign exchange movements, write offs or legal settlements, was $45.8-million, compared with a loss of $800 000 a year earlier.

The 2017 December half-year net loss after tax accounted for a foreign exchange loss and writing off capitalisation exploration and development expenses.

Perseus grew its revenue from $134.6-million to $167.5-million in the period under review, owing to an increase in gold sales as a result of higher gold production and higher gold prices.

Operating cash flows increased during the December half-year, owing to the higher revenue and as a result of lower unit costs. Operating cash flows were a positive $23.8-million, compared with a negative $17.4-million in the December 2016 half-year.

“Underlying the improved financial results reported today is clear evidence of the significant turnaround in Perseus’ operating performance over the last 12 months and the company’s growing ability to generate positive cash flows. With the successful commissioning of our second mine at Sissingue, this positive trend is expected to continue and to translate into positive earnings in periods to come,” MD Jeff Quartermaine said in a statement.

Perseus is targeting full-year gold production of 250 000 oz to 285 000 oz from the Edikan mine, in Ghana, and Sissingue, in Cote d’Ivoire, which is scheduled to declare commercial production on April 1.

The two mines are expected to deliver group all-in site costs of $950/oz to $1 100/oz for the full year.