TORONTO (miningweekly.com) – Dual-listed West Africa-focused gold miner Perseus Mining said the unexpected availability issues in the primary crusher at its flagship Edikan mine, in Ghana, during November and December, 2012, had resulted in production for the quarter being below expectations.
The company on Monday said that for the December quarter the gold production of 51 090 oz was 3% below that of the September quarter production of 52 610 oz and 13% below the company’s revised production guidance range for the quarter.
Perseus said the production cost for the quarter of $588/oz was 2% higher than guidance and 24% higher than the abnormally low September quarter production cost of $475/oz. The head grade of 1.39 g/t at the Edikan mine was 6% below target and the total plant recovery rate of 84.2% was reported 4% below target.
The operation’s semiautogenous mill usage rate of 76% was the same as the previous quarter and largely reflected the impact of the mechanical availability issues in the primary crusher.
Meanwhile, the company said the development decision for the Sissingué gold project, in Côte d'Ivoire remained on hold during the quarter pending clarification of the fiscal regime applicable to the project.
Following representations to the Ivorian government by the gold industry about a proposed super profits tax, legislation which would have introduced the new tax did not receive presidential approval and was, therefore, not passed into law.
Proposals regarding alternative fiscal measures representing a potential "win-win" for the Ivorian government and gold companies are currently being negotiated and are due to be announced shortly, the company said.
Negotiation of a mining convention documenting fiscal arrangements applicable for the duration of the Sissingué gold mine have resumed following confirmation of the government's intention to amend the mining code to include the provision of mining conventions to cover the exploitation of mineral reserves.
Further, the Ivorian government granted the Mbengué, Napié and Mahale exploration licences to a subsidiary company of Perseus on December 19, 2012.
At the end of the December quarter the company had $39.7-million cash in the bank, which excluded $9.1-million held in escrow. It had 11 785 oz of bullion on hand valued at $18.9-million and had access to a $100-million revolving line of credit.
The company had also reduced its hedging commitment to 216 000 oz at a weighted average price of $1 373/oz.
The company also on Monday said CE Mark Calderwood was stepping down and would be replaced by the company's CFO as the company moves into a new phase as a gold producer.
Calderwood had led the company for nine years as it acquired projects in Africa and developed the Edikan mine, which started producing last year.
CFO Jeff Quartermaine, who had experience in financial and strategic management roles with a range of Australian- and Toronto-listed resources companies, will take over from February 1.
The company’s Toronto-listed share price lost some ground on Monday and closed down 6.48% at C$2.02 apiece.