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contractor|financial|gold|health|mining|safety|maintenance

Edikan misses the mark for Perseus

26th July 2022

By: Esmarie Iannucci

Creamer Media Senior Deputy Editor: Australasia

     

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PERTH (miningweekly.com) – ASX- and TSX-listed gold miner Perseus Mining has hit the upper end of its production target for the 2022 financial year ended June, with all-in sustaining costs (AISC) falling within the bottom quartile of market guidance.

Perseus on Tuesday reported that gold poured during the June quarter reached 120 409 oz, down from the 132 644 oz in the previous quarter, with full-year gold pour reaching 490 536 oz.

Gold production in the June quarter was reported at 122 327 oz, down from the 130 523 oz produced in the March quarter, with full year production reaching 494 014 oz.

AISC for the quarter was reported at $1 004/oz, up from the $908/oz in the March quarter, while full-year AISC were reported at $952/oz.

The Yaouré operation, in Cote d’Ivoire, again outperformed expectations during the quarter, producing above guidance and below the bottom end of the cost guidance range for both the half year ended June and the full year.

During the quarter, Yaouré increased its gold production by a further 6% compared to the prior quarter to 81 150 oz of gold at a production cost of $543/oz and an AISC of $641/oz. The improving gold production at Yaouré reflected higher mill throughput rates, Perseus told shareholders.

During June, a contractor at Yaouré was fatally injured while working at the heavy vehicle workshop, and Perseus undertook an investigation into the incident, and has consulted with relevant authorities. Following the accident, a thorough review of all health and safety critical risks and controls has been initiated for all activities undertaken by Perseus’ employees and contractors across the company’s three operating sites.

This review will be followed by an improvement programme where needed. This work will be conducted throughout 2023, first prioritising the most significant risks at each site.

Meanwhile, during the quarter under review, Perseus also produced 12 509 oz of gold at Sissingué at a production cost of $1 227/oz and an AISC of $1 398/oz.

Perseus noted that the 2 503 oz decrease in quarterly gold production, compared with the March quarter, largely resulted from an 11% decrease in the quantity of ore processed. This was caused by a change in the composition of mill feed as more sedimentary ore was processed compared with prior periods, and a reduction in mill run time owing to maintenance activities early in the quarter. The head grade of processed ore also decreased from 1.32 g/t to 1.24 g/t owing to the composition of the mill feed but gold recovery rates remained stable at 89.6%.

At Edikan, in Ghana, Perseus produced 28 669 oz of gold during the quarter, 26% less than the March quarter, at a production cost of $1 685/oz and an AISC of $1 859/oz, 39% higher than in the prior quarter.

Perseus told shareholders that Edikan’s operating performance during the June quarter was disappointing, falling short of the company’s required standards. This was partially owing to the availability of Edikan’s processing facility being reduced by 21% during the quarter while the 19-day preventative maintenance shutdown was undertaken.

It also resulted from a combination of inadequate management of previous maintenance activities on the carbon-in-leach tanks that impacted gold recovery rates, and poor block model to mill reconciliation recorded while mining in the AG Pit cutback area was completed.

The company noted that while an allowance was built into the Edikan market production and cost guidance for the June half-year and the full financial year to allow for these events, this allowance was insufficient and both production and AISC for both periods fell short of guidance.

For the June half-year, Edikan produced 67 258 oz of gold at an AISC of $1 559/oz compared to market guidance of 75 000 oz to 90 000 oz at $1 210/oz to $1 430/oz, while for the full financial year, 134 543 oz of gold were produced at an AISC of $1 534/oz compared to market guidance of 142 284 oz to 157 284 oz at $1 350/oz to $1 465/oz.

Edited by Creamer Media Reporter

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