Perseus Yaoure Mine Exploration Permit bypasses the 10th April Deadline

Perseus Mining Limited (ASX: PRU) announced on 11th April 2019 that the Exploration Permit (EP) consideration of the company for the Perseus Yaoure SARL, which was initially expected to be considered by the Ivorian government in a cabinet meeting on 10th April, has got delayed. As per the company, due to other more urgent government work, the Exploration Permit application could not be tabled for the approval at the meeting.

However, the company believes that the Exploration Permit will be granted to the company shortly as Cabinet meeting occurs each Wednesday to consider Government business. Perseus thinks that the proposed Yaoure SARL satisfies all the requirements to receive the Exploration Permit.

The company recently secured a corporate Debt facility of US$150 million and accepted Committed Letter of Offer from significant international banks for the development of the Yaoure Gold Mine in Cote d’Ivoire, which will add a third operational mine to the company’s operational portfolio.

Perseus, a gold producer, and explorer in West Africa, presented a corporate presentation on 8th April 2019. The company emphasized on the investment opportunity amid multi-mine, multi-jurisdiction operations, which the company has in its portfolio.

Perseus mentioned that the company aims to take the gold production nearly to 500,000 ounces per annum with consistency by 2022. Perseus also seeks to keep the All-in-Site-Cost (AISC) less than US$850 per ounce.

The company adopts a strategy which includes, investing in assets, mine developments, continuous improvement, etc.

As per the presentation, the near time guidance of the company was to produce 130k-150k ounces of gold by December 18 Half and June 19 Half, and the full year gold production guidance was set to produce 271k-291k ounces of gold. Along with the gold production guidance, the company planned its AISC in the range of US$950-US$1,150 per ounce for Dec 18 Half and US$850—US$1,000 per ounce for June 19 Half and the full year AISC in the range of US$925—US$1,000 per ounce.

As per the company, the actual production in Dec 18 Half was 140,555 ounces, and the AISC was US$999 per ounce. Perseus also mentioned that the production for March 2019 quarter was 67,144 ounces, which as per the company is on track to meet June 19 Half guidance.

The production of 67,144 ounces of gold in the March 2019 quarter was due to the significant production from the Edikan prospect, which alone produced 44,680 ounces of gold and the second prospect of the company, i.e., Sissingue produced 22,464 ounces of gold. The total production in March 2019 quarter exceeds the production in the previous corresponding period by 5%.

Perseus operational improvement led the company to beat the production of the previous corresponding quarter. Along with the operational improvement, the company also improved its financial strength and reported a Cash on hand of US$58 million, and Cash & Bullion of worth US$81 million as on 31st March 2019.

However, the company recently raised a debt of US$150 million, and the use of the debt facility should be monitored closely along with the pending Exploration Permit for the company’s third mine, where the company plans to spend the US$150 million it just secured.

The stock of the company traded last at A$0.485 (as on 10th April 2019), unchanged as compared to its previous close. The securities of the company as facing a trading halt (related to underwriting of warrants with expiry date of 19 April 2019), effective today, amid pending announcement.


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