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Midtier gold miner outdoes performance expectations

At the end of its 2023 financial year ended June 30, midtier gold producer Perseus Mining’s performance exceeded market expectations and showcased the company’s commitment to sustainable growth and responsible mining practices, the miner reported in a July announcement.

In the financial year, Perseus produced 136 634 oz of gold across its three operating West African gold mines – Yaouré and Sissingué in Côte d’Ivoire, and Edikan in Ghana – thereby outperforming its market guidance, which Perseus says highlights the company’s ability to consistently deliver results that exceed expectations.

One of the key factors contributing to Perseus’ success is its focus on cost efficiency, evidenced through the weighted average production cost across all three operations being $811/oz, while the all-in sustaining cost (AISC) during the quarter was $1 007/oz of gold. This commitment to cost management enables the company to maintain profitability, even in challenging market conditions, Perseus reports.

The second calendar quarter of this year saw Perseus achieve quarterly gold sales of 140 533 oz – a 4% increase from the first calendar quarter of the year. The average sale price of gold also experienced an uptick, reaching $1 933/oz – reflecting a 6% increase in the period.

As a result, the average cash margin an ounce of gold sold reached $926, representing a 9% improvement compared to the first calendar quarter, thereby underlining Perseus’ ability to adapt and thrive in a dynamic market environment, the company says in a statement.

The miner’s strong performance has strengthened its financial position, with a cash and bullion balance of $522-million and zero debt, which it says represents a $51-million increase from the first calendar quarter of the year.

Perseus is also actively investing in its long-term growth, with growth activities including mineral resource drilling campaigns and feasibility studies at Yaouré’s CMA underground project. This, the miner says, is progressing as scheduled, with results expected in the first quarter of its 2024 financial year.

“This commitment to sustainable growth ensures that Perseus continues to thrive in the years to come,” the miner comments.

During the second quarter, the company made a significant contribution of about $158-million to its host countries of Ghana, Côte d’Ivoire and Sudan.

This contribution, amounting to about 58% of its revenue, demonstrates “Perseus’ dedication to making a positive impact on the communities in which it operates”.

While Perseus has achieved success, it has also faced challenges in the pre-development activities at the Meyas Sand gold project, in Sudan, which had to be suspended owing to security concerns.

Consequently, the final investment decision, originally planned for the second half of its 2024 financial year, has been deferred.