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Strong cash flow takes Perseus’ cash, bullion balance to $594m

The Edikan mine In Ghana

The Edikan mine In Ghana

24th October 2023

By: Creamer Media Reporter

     

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Africa-focused gold miner Perseus Mining has added $72-million to its cash and bullion balance in the quarter ended September 30, taking its cash and bullion balance to $594-million.

That, along with its zero debt and $300-million of undrawn debt capacity, puts the company in “an excellent position” to continue growing the business or return capital to shareholders if the latter should prove to be a more appropriate use of funds, MD and CEO Jeff Quartermaine says.

He reports that Perseus delivered a good operating performance for the third quarter, with gold production and all-in sustaining costs (AISC) having outperformed internal targets.

The ASX- and TSX-listed company’s Yaouré and Sissingué mines, in Côte d’Ivoire, and its Edikan mine, in Ghana, produced a combined 132 804 oz of gold in the quarter under review, at an average production cost of $805/oz and an AISC of $937/oz.

Gold sales decreased by 17.5% quarter-on-quarter to 115 954 oz, mainly as a result of the timing of sales transactions.

The average gold price realised was $1 936/oz, while Perseus’ average cash margin for the quarter was $999/oz, 8% better than the cash margin of $926/oz achieved in the June quarter.

Notional operating cash flow from operations was $132-million, $5-million more than the June quarter, driven by the improved gold price achieved and reduced AISC, but offset slightly by marginally decreased gold production.

Edited by Chanel de Bruyn
Creamer Media Online Managing Editor

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