Perseus Mining Limited: Activity Report for December 2020 Quarter

2021-01-20 / @nasdaq

PERTH, Western Australia, Jan. 20, 2021 (GLOBE NEWSWIRE) -- Perseus Mining Limited (“Perseus” or the “Company”) (TSX & ASX: PRU) reports on its activities for the three months’ period ended December 31, 2020 (the “Quarter”). An executive summary is provided below. However, full details of activities in the December Quarter, including reconciled production and all-in site cash costs, are included in the Company’s December 2020 Quarterly Activity Report released to the market on January 21, 2021. The full report is available for download from www.perseusmining.com, www.asx.com.au and www.sedar.com.

Executive Summary

Perseus’s gold mining operations continue to perform well

Edikan, Sissingué and Yaouré gold mines all contributed to Perseus maintaining its record of consistently strong operating performances this quarter:


Performance Indicator	*Unit*	December 2020 *Quarter*	December 2020 *Half Year*	*2020* Calendar Year
Gold recovered¹	Ounces	68,614	137,386	260,045
Gold poured¹	Ounces	65,657	133,717	257,592
Production Cost²	US$/ounce	915	868	871
All-In Site Cost (“AISC”)²	US$/ounce	1,036	1,000	1,002
Gold sales	Ounces	66,644	127,085	265,127
Average sales price	US$/ounce	1,687	1,643	1,579
Notional Cashflow	US$ million	44.6	88.3	150.0

Includes gold from Yaouré.
Excludes Yaouré’s AISC until declaration of Commercial Production.

Half Year gold production of 137,386 ounces was up 12% on the June 2020 Half Year, and close to the top end of the production guidance range of 125,500 - 139,000 ounces. At US$1,000 per ounce, AISCs were slightly lower than the June Half Year and within the guided AISC range of US$940 - US$1,025 per ounce.
At 68,614 ounces, quarterly gold production was in line with last quarter’s production while AISCs increased by 7% to US$1,036 per ounce.
Quarterly gold sales increased 10% and the average realised gold price increased 6% to US$1,687 per ounce, generating quarterly and half year notional cashflows from operations of US$44.6 million and US$88.3 million, respectively.
Perseus has set gold production and AISC market guidance for the June 2021 Half Year at 175,000 to 190,000 ounces at an AISC of US$950 to US$1,150 per ounce. (refer below for detail)

Yaouré mine development completed ahead of time and budget.

First gold was successfully poured at Yaouré on December 17, 2020, ahead of the stretch target for the event. Commissioning is in progress and Commercial Production is expected to be declared when all completion tests are satisfied.
Perseus has paid US$237 million to suppliers of goods and services to date. Final development costs are expected to fall below the budget of US$265 million.
With the successful development and ramp up of Yaouré, Perseus will be on track to achieve its goal of producing more than 500,000 ounces of gold per year at a margin of not less than US$400 per ounce.

Balance Sheet strength maintained by strong operating cash flows.

Available cash and bullion on hand of US$118.1 million at quarter end. Debt has been reduced by US$20 million to US$130 million giving a net debt position during the quarter of US$11.9 million, US$9.3 million more than at the end of last quarter.

Encouraging organic growth opportunities emerging.

Organic growth opportunities are being investigated on existing licence areas, particularly at Bagoé near Sissingué and on the Yaouré mining lease and are expected to deliver incremental growth in Mineral Resources and Ore Reserves.

Perseus Group Production and Cost Guidance – June 2021 Half Year

Production and cost guidance for the June 2021 Half Year and the 2021 Full Financial Year remains unchanged as follows:

Table 8: Production and Cost Guidance:


*Parameter*	*Unit*	December 2020 Half Year *(Actual)*	June 2021 Half Year (Forecast)	*2021* *Financial Year* *(Forecast)*
*Edikan Gold Mine*
Gold production	‘000 Ounces	78,790	*87,500 – 95,000*	166,290 – 173,790
All-In Site Cost (AISC)	US$/ounce	1,253	*1,000 – 1,200*	1,115-1,225
*Sissingué Gold Mine*
Gold production	‘000 Ounces	55,909	*39,500 – 43,000*	95,409 – 98,909
All-In Site Cost (AISC)	US$/ounce	643	*650 - 725*	646-677
*Yaouré Gold Mine*
Gold production	‘000 Ounces	2,687	*48,000 – 52,000*	50,687 – 54,687
All-In Site Cost (AISC)	US$/ounce	-	*1,100 – 1,300*	1,100-1,300
*Perseus Group*
Gold production	‘000 Ounces	137,386	*175,000 – 190,000*	312,386 – 327,386
All-In Site Cost (AISC)	US$/ounce	1,000	*950 -1,150*	970 – 1,067

PROGRAM FOR THE MARCH 2021 QUARTER

GOLD MINING OPERATIONS
Edikan

Produce gold at an all-in site cost in line with the recently published Life of Mine Plan (LOMP).
Continue planning and implementing Continuous Improvement initiatives aimed at increasing gold production and reducing AISC.

Sissingué

Produce gold at a total all-in site cost in line with LOMP.
Continue planning and implementing Continuous Improvement initiatives aimed at increasing gold production and reducing AISC.
Continue work on licencing mining of the Fimbiasso, Véronique, Antoinette and Juliette satellite deposits.

Yaouré

Complete ramp up of the Yaouré processing facility, and achieve milestones related to completion tests and declaring of Commercial Production.
Produce gold at a total all-in site cost in line with forecasts.
Prepare and publish an updated LOMP for the Yaouré Gold Mine.
Complete land, and crop compensation payments to affected land holders and farmers.

BUSINESS GROWTH
Edikan

Continue preparations for commencing underground operations at Esuajah South, pending to a decision to proceed with development of the project.
Commence drilling at the Breman prospect on the Agyakusu permit.
Commence soil sampling and mapping on the recently optioned Dompoase permit.
Complete assessment of the potential of the Mampong South deposit for further drilling.

Sissingué

Complete DFS for the Antoinette, Véronique and Juliette deposits at Bagoé and potentially convert to Ore Reserve.
Complete exploration drilling at Tiana and Kakolo.
Continue the soil sampling at Minignan.

Yaouré

Complete the assessment of the CMA South, Govisou and Angovia 2 deposits to determine drilling and studies. required to potentially convert to Ore Reserves.
Identify and prioritise potential drilling targets from the 3D seismic survey.

Other

Continue to review both potential “bolt on” acquisition and merger opportunities to assess potential for continued corporate growth and value creation.

To discuss any aspect of this announcement, please contact:

*Managing Director:*	Jeff Quartermaine at telephone +61 8 6144 1700 or email jeff.quartermaine@perseusmining.com;
*Media Relations*:	Nathan Ryan at telephone +61 4 20 582 887 or email nathan.ryan@nwrcommunications.com.au (Melbourne)

Competent Person Statement:
All production targets for Edikan, Sissingué and Yaouré referred to in this report are underpinned by estimated Ore Reserves which have been prepared by competent persons in accordance with the requirements of the JORC Code. The information in this report that relates to Esuajah North Mineral Resources estimate was first reported by the Company in compliance with the JORC Code 2012 and NI43-101 in a market announcement entitled “Perseus Mining Updates Mineral Resources & Ore Reserves” released on 29 August 2018. The information in this report that relates to the Mineral Resource and Ore Reserve estimates for the Bokitsi South and AFG Gap deposits at the EGM was first reported by the Company in compliance with the JORC Code 2012 and NI43-101 in a market announcement released on 26 August 2020. The information in this report that relates to the Mineral Resource and Ore Reserve estimates for the other EGM deposits (Fetish and Esuajah South Underground) was first reported by the Company in compliance with the JORC Code 2012 and NI43-101 in a market announcement released on 20 February 2020 and was updated for depletion until 30 June 2020 in a market announcement released on 26 August 2020. The Company confirms that it is not aware of any new information or data that materially affect the information in those market releases and that all material assumptions underpinning those estimates and the production targets, or the forecast financial information derived therefrom, continue to apply and have not materially changed. The Company further confirms that material assumptions underpinning the estimates of Ore Reserves described in “Technical Report — Central Ashanti Gold Project, Ghana” dated 30 May 2011 continue to apply.

The information in this report that relates to Mineral Resources and Ore Reserves for Sissingué was first reported by the Company in compliance with the JORC Code 2012 and NI43-101 in a market announcement released on 29 October 2018 and includes an update for depletion as at 30 June 2020.The information in this report that relates to Mineral Resources and Ore Reserves for the Fimbiasso East and West deposits, previously Bélé East and West respectively, was first reported by the Company in compliance with the JORC Code 2012 and NI43-101 in a market announcement released on 26 August 2020. The Company confirms that material assumptions underpinning the estimates of Mineral Resources and Ore Reserves described in those market announcements. The Company confirms that it is not aware of any new information or data that materially affect the information in these market releases and that all material assumptions underpinning those estimates and the production targets, or the forecast financial information derived therefrom, continue to apply and have not materially changed. The Company further confirms that material assumptions underpinning the estimates of Ore Reserves described in “Technical Report — Sissingué Gold Project, Côte d’Ivoire” dated 29 May 2015 continue to apply.

The information in this report in relation to Yaouré Mineral Resource and Ore Reserve estimates was first reported by the Company in compliance with the JORC Code 2012 and NI43-101 in a market announcement on 28 August 2019. The Company confirms that all material assumptions underpinning those estimates and the production targets, or the forecast financial information derived therefrom, in that market release continue to apply and have not materially changed. The Company further confirms that material assumptions underpinning the estimates of Ore Reserves described in “Technical Report — Yaouré Gold Project, Côte d’Ivoire” dated 18 December 2017 continue to apply. The information in this report and the attachments that relates to exploration drilling results is based on, and fairly represents, information and supporting documentation prepared by Dr Douglas Jones, a Competent Person who is a Chartered Professional Geologist. Dr Jones is the Group General Manager Exploration of the Company. Dr Jones has sufficient experience, which is relevant to the style of mineralisation and type of deposit under consideration and to the activity being undertaken, to qualify as a Competent Person as defined in the 2012 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’”) and to qualify as a “Qualified Person” under National Instrument 43-101 – Standards of Disclosure for Mineral Projects (“NI 43-101”). Dr Jones consents to the inclusion in this report of the matters based on his information in the form and context in which it appears.

Caution Regarding Forward Looking Information:
This report contains forward-looking information which is based on the assumptions, estimates, analysis and opinions of management made in light of its experience and its perception of trends, current conditions and expected developments, as well as other factors that management of the Company believes to be relevant and reasonable in the circumstances at the date that such statements are made, but which may prove to be incorrect. Assumptions have been made by the Company regarding, among other things: the price of gold, continuing commercial production at the Edikan Gold Mine and the Sissingué Gold Mine without any major disruption due to the COVID-19 pandemic or otherwise, development of a mine at Yaouré, the receipt of required governmental approvals, the accuracy of capital and operating cost estimates, the ability of the Company to operate in a safe, efficient and effective manner and the ability of the Company to obtain financing as and when required and on reasonable terms. Readers are cautioned that the foregoing list is not exhaustive of all factors and assumptions which may have been used by the Company. Although management believes that the assumptions made by the Company and the expectations represented by such information are reasonable, there can be no assurance that the forward-looking information will prove to be accurate. Forward-looking information involves known and unknown risks, uncertainties, and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any anticipated future results, performance or achievements expressed or implied by such forward-looking information. Such factors include, among others, the actual market price of gold, the actual results of current exploration, the actual results of future exploration, changes in project parameters as plans continue to be evaluated, as well as those factors disclosed in the Company's publicly filed documents. The Company believes that the assumptions and expectations reflected in the forward-looking information are reasonable. Assumptions have been made regarding, among other things, the Company’s ability to carry on its exploration and development activities, the timely receipt of required approvals, the price of gold, the ability of the Company to operate in a safe, efficient and effective manner and the ability of the Company to obtain financing as and when required and on reasonable terms. Readers should not place undue reliance on forward-looking information. Perseus does not undertake to update any forward-looking information, except in accordance with applicable securities laws.