Perseus’ production increases 45% y/y, costs fall 22%
ASX-listed West African gold producer Perseus Mining produced 255 916 oz of gold in the financial year ended June 30, which is a 45% increase compared with the prior financial year.
The weighted average all-in site costs, including the cost of production, royalties and sustaining capital, meanwhile, averaged $1 039/oz, which is 22% less than in the prior financial year.
MD Jeff Quartermaine added that, at $137.8-million, the company’s gross profit from operations before depreciation and amortisation is materially better than in the past.
However, an increase in noncash items negatively impacted on the miner’s reported net after-tax earnings.
“The noncash depreciation and amortisation charge has increased as we mine and process more ore and the results have also been impacted on by our decision to carefully examine the carrying value of our assets and, in some instances, write down the value of any assets to reflect forecast underlying values,” he elaborated.
The company’s Sissingué mine, in Côte d'Ivoire, came on stream earlier in the year, and will make a significant contribution to the bottom line when it operates for a full 12 months, rather than three months in the reporting period.
The Edikan mine, in Ghana, is also performing materially better than it has done in the past and is making a solid contribution to free cash flow.
In the coming financial year, Perseus expects to start development on its third operating mine, Yaouré, in Côte d'Ivoire, which is expected to come on stream in early 2021.
By that time, Perseus’ production should be around 500 000 oz/y.
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