On 16 April 2019, gold exploration, development and exploration company Perseus Mining Limited (ASX: PRU) released its March 2019 quarterly-activities report. During the quarter, the company noted a consistent solid operating performance at its Edikan and Sissingué gold mines.
In March 2019 quarter gold production, all in site costs (AISC) and sales were as follows:
1) Production of gold 67,144 ounces was within 1.5% of the December 2018 quarter’s gold production of 68,078 ounces.
2) At US$851 per ounce, quarterly AISC was 19% less than the December 2018 quarter’s AISC and 15% less than the AISC in the December 2018 half-year period.
3) Group gold production is on target to achieve June 2019 half year production guidance of 130-150,000 ounces, and AISCs are also on track to achieve cost guidance of US$850-US$1,000 per ounce.
4) Perseus’s weighted average cash margin of US$433 per ounce during the quarter generated notional cash flow of US$29.1 million, reflecting beyond double of the previous quarter.
The development of Yaouré Gold Project, PRU’s third gold mine is on track. An offer by a banking syndicate to grant a US$150 million cash advance facility to partially fund the development of Yaouré has been accepted. Also, Yaouré’s financing plan will be fully funded by debt, existing cash and bullion of US$81 million, material future cash inflows from operations and proceeds from the exercise or underwriting of Perseus warrants. The Yaouré Exploitation Permit (EP) was not granted by the Ivorian government as anticipated in the quarter.
With all pre-conditions fulfilled, imminent granting of the EP looks highly possible now. The engineering and supply contractor, Lycopodium, and Perseus’s in-house construction team are ready to begin development activities upon the granting of the EP. If there are no delays in the permit, PRU would aim towards pouring its first gold at Yaouré Project in December 2020.
From the balance sheet perspective, PRU has observed continues strengthening.
USD29.1 million of notional cash flow, a rise of 116 percent was generated by operations during the quarter. On 31 March 2019, USD80.8 million of cash and bullion was on hand, up by 24%. Also, the existing bank debt decreased by USD4 million to USD44.5 million during the period. The net cash and bullion stand at USD36.3 million at the end of the quarter which is USD19.9 million or 121% above compared to the net balance of USD16.4 million as was noted on 31 December 2018.
Program for June 2019 Quarter:
At Edikan Gold Mine, PRU would begin drilling of conceptual granite-hosted mineralisation north of the Esuajah North pit at Wampam West.
At Sissingué Gold Mine, PRU would continue auger, AC and RC drilling at the Papara-Tiongoli, Zanikan and other prospects within trucking distance of Sissingué. The company would also begin with RC drilling program of the Fimbiasso South and other targets on the Mahalé permit.
At Yaouré Gold Project, the company would start auger drilling over the Degbezere soil anomaly on the Yaouré West permit.
On the corporate front, the company would finalise documentation for the US$150 million corporate cash advance facility. Besides, PRU would arrange for the underwriting of unexercised Perseus warrants that mature on 19 April 2019.
The stock of the company is currently trading at A$0.447 (as on 16 April 2018, 1:05 PM AEST), down by 1.758%.
This website is a service of Kalkine Media Pty. Ltd. A.C.N. 629 651 672. The website has been prepared for informational purposes only and is not intended to be used as a complete source of information on any particular company. Kalkine Media does not in any way endorse or recommend individuals, products or services that may be discussed on this site. Our publications are NOT a solicitation or recommendation to buy, sell or hold. We are neither licensed nor qualified to provide investment advice.