Perseus Mining Limited (ASX: PRU) published the recent updates on estimates of Mineral Resources, Mineral Reserves and Life-of-Mine Plan for its Sissingué Gold Mine in Côte d’Ivoire on October 29, 2018. The recent exploration program has replaced the ore that has been processed ever since the commencement of the mine in January-2018 . Moderate increase in the inventory was reported during the period.
Mineral resources at the site have been estimated independently by MPR geological consultants Pty Ltd outside the August 31, mining surface. These have been estimated using “MIK”. Resources are contained within optimal pit shells generated at a gold price of US $1800 per ounce. Update include mineral reserve of 5.8 million tonnes of ore, with a grade of 2.1 g/t gold and 380,000 ounces of gold. 0.1 million tonnes of inferred resources, with a grading of 0.9g/t gold and containing 3000 of gold at a cut-off grade of 0.6 g/t gold was noted. LOMP has been updated using the re-estimated mineral resources and mineral reserves. Resource estimates reconciles to within 2% of actual mine production to date. Estimated US$21 total sustaining capital cost is included in the estimated AISC.
Impressive results from exploration drilling at Sissingué and nearby Fimbiasso, indicates huge potential to increase the remaining mine life beyond 4.6 years. Production of approximately 78,000 ounces per annum is estimated over the present 4.6-year life of mine. Recent and new changes from the previous life of the mine includes the addition of three small satellite pits to the main Sissingué pit. Increment in mining and processing cost was reported during the period. Significant increase in fuel cost from $0.6/L to $0.9/L resulted in increment of the mining cost and the processing costs. Increase in the labour cost and re-handle cost also impacted the sudden increment in the production cost along with the increment in fuel cost. Closer spacing of holes and increase in the areas drilled around ore blocks reported an increase in grade control cost.
Key take away from the updates:
- Development cost of around 30% or US$32.1 million was generated in first six months of commercial production.
- Forecasted weighted average AISC was estimated around US $739 per ounce in the first three years of production and is expected to achieve US$756 per ounce over the current life of the mine. Estimates include all direct production cost, royalties, sustaining capital expenditure and waste stripping cost.
- Positive after-tax cash flow of approximately US$165 million, with an assumption of spot prices of gold to be flat at US $1200 per ounce for unhedged ounces for the mine life starting from July 1, 2018 was indicated. Assumption also takes into consideration 6,4000 ounces of existing designated hedges at a weighted average price of US$1300 per ounce.
- Estimated mineral resources at Fimbiasso East and West deposits remain unchanged from the market announcement made on August 29, 2018.
With the recent updates on October 29, on its mineral Resources, mineral Reserves and Life-of-Mine Plan for its Sissingué Gold Mine in Côte d’Ivoire, Perseus Mining Limited is currently trading at the levels of $0.385, down 3.75%.
The advice given by Kalkine Pty Ltd and provided on this website is general information only and it does not take into account your investment objectives, financial situation or needs. You should therefore consider whether the advice is appropriate to your investment objectives, financial situation and needs before acting upon it. You should seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice) as necessary before acting on any advice. Not all investments are appropriate for all people. Kalkinemedia.com and associated websites are published by Kalkine Pty Ltd ABN 34 154 808 312 (Australian Financial Services License Number 425376). website), employees and/or associates of Kalkine Pty Ltd do not hold positions in any of the stocks covered on the website. These stocks can change any time and readers of the reports should not consider these stocks as advice or recommendations.
There is no investor left unperturbed with the ongoing trade conflicts between US-China and the devastating bushfire in Australia.
Are you wondering if the year 2020 might not have taken the right start? Dividend stocks could be the answer to that question.
As interest rates in Australia are already at record low levels, find out which dividend stocks are viewed as the most attractive investment opportunity in the current scenario in our report.