Perseus Mining Limited: Activity Report for March 2021 Quarter

2021-04-19 / @nasdaq

PERTH, Western Australia, April 19, 2021 (GLOBE NEWSWIRE) -- Perseus Mining Limited (“Perseus” or the “Company”) (TSX & ASX: PRU) reports on its activities for the three months’ period ended March 31, 2021 (the “Quarter”). An executive summary is provided below. However, full details of activities in the March Quarter, including reconciled production and all-in site cash costs, are included in the Company’s March 2021 Quarterly Activity Report released to the market on April 20, 2021. The full report is available for download from www.perseusmining.com, www.asx.com.au and www.sedar.com.

Executive Summary

Perseus achieved a 29% increase in gold production with its third mine, Yaouré ramping up, 31% increase in gold sales and a 3.5% decrease in AISC for the quarter, highlighting its consistently improving operating performance.

Table 1: Operating and Financial Summary

*Performance Indicator*	*Unit*	December 2020 Quarter	December 2020 *Half Year*	*March* *2021* *Quarter*	2021 Financial Year to Date
Gold recovered¹	Ounces	68,614	137,386	88,458	225,845
Gold poured¹	Ounces	65,657	133,717	86,042	219,759
Production Cost²	US$/ounce	915	868	852	863
All-In Site Cost (AISC)²	US$/ounce	1,036	1,000	999	1,000
Gold sales¹	Ounces	66,644	127,085	87,215	214,300
Average sales price²	US$/ounce	1,687	1,643	1,628	1,637
Notional Cashflow²	US$ million	44.6	88.3	41.7	130.0

Yaouré Gold Mine commissioning successfully completed during the Quarter with “Commercial Production” formally declared on March 31, 2021.
The Group’s quarterly gold production of 88,458 ounces increased 29% from the December Quarter¹.
The Group’s AISC for the quarter was US$999 per ounce, a 3.5% decrease from last quarter².
Quarterly gold sales increased 31% to 87,215 ounces.
The average realised gold price decreased 3.5% to US$1,628 per ounce resulting in quarterly notional cashflows from these operations of US$41.7 million, US$2.9 million or 7% less than in the December 2020 quarter.
Perseus’s gold production and AISC market guidance of 175,000 to 190,000 ounces at US$950 to US$1,150 per ounce for the June 2021 Half Year remains unchanged.
Encouraging exploration results achieved at Bagoé near Sissingué and at Govisou on the Yaouré mining lease (Refer to the release dated April 7, 2021).
Available cash and bullion on hand of US$136 million and debt of US$130 million giving a net cash position of US$6 million at quarter end, US$18 million more than at the end of last quarter.
Perseus is on track to achieve its goal of producing more than 500,000 ounces of gold per year at a cash operating margin of not less than US$400 per ounce.

Notes:

1. Includes gold produced at Yaouré.

2. Excludes Yaouré’s AISC, and sales pending declaration of Commercial Production on March 31, 2021.

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 2: 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 JUNE 2021 QUARTER

GOLD MINING OPERATIONS

All Sites

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

Sissingué

Continue work on licencing mining of the Fimbiasso, Véronique, Antoinette and Juliette satellite deposits.

Yaouré

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

Commence drilling at the Breman prospect on the Agyakusu permit as soon as agreement is reached with the local community.
Commence AC drilling of soil anomalies on the DML permit.
Commence soil sampling and mapping on the Domenase permit.
Complete assessment of the potential of the Mampong South deposit for further drilling.

Sissingué

Prepare and publish a Definitive Feasibility Study and ESIA for the development of the Bagoé prospects, including Antoinette, Véronique and Juliette deposits.
Continue exploration drilling on the Bagoé tenement.
Complete drilling of three deep diamond drill holes below the Sissingué open pit.

Yaouré

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

Other

Results from the exploration program are expected to contribute incremental growth in Mineral Resources and Ore Reserves by the end of the June 2021 quarter.
Continue to review both “bolt on” acquisition and merger opportunities for continued corporate growth and value creation.

Sustainability

Preparation of Perseus’s 2020 Sustainability Report is underway. The Report will be published in April 2021 highlighting advances made by Perseus in Environmental, Social and Governance (ESG) performance during the year. This year, Perseus has enhanced its disclosure on sustainability-related risks and opportunities by aligning with key reporting frameworks used by our stakeholders. These include the World Gold Council Responsible Gold Mining Principles, Global Reporting Initiative (GRI), Sustainability Accounting Standards Board (SASB) and the Task Force on Climate Related Financial Disclosures (TCFD).

To discuss any aspect of this announcement, please contact:

Managing Director:	Jeff Quartermaine at email jeff.quartermaine@perseusmining.com;

Corporate Communications:	Claire Hall at telephone +61 414 558 202 or email Claire.hall@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 that relates to exploration results at Yaouré and Bagoé was first reported by the Company in compliance with the JORC Code 2012 and NI43-101 in a market announcement released on 7 April 2021. The Company confirms that it is not aware of any new information or data that materially affects the information in that market announcement.

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 Yaouré Gold Mine, the Edikan Gold Mine and the Sissingué Gold Mine without any major disruption due to the COVID-19 pandemic or otherwise, 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.