First pour of gold at Yaouré set for late December
Perseus Mining Ltd., a West African gold producer, operates two gold mines in West Africa, with first gold from its third mine, Yaouré, expected in December 2020. Gold production will increase to more than 500,000 ounces per year in 2021/2022.
The Edikan Gold Mine in Ghana, has produced about 200,000 ounces of gold per year since 2012. Over the next four years, Edikan’s production is expected to increase to 230,000oz+ per year.
Perseus became a multi-mine, multi-jurisdiction gold producer in January 2018 when it opened its second mine, the Sissingué Gold Mine in Côte d’Ivoire. Perseus commenced construction of its third gold mine at the Yaouré Gold Mine, also in Côte d’Ivoire, in May 2019.
Its growth strategy aims to transform the Company into a 500,000-ounce per year gold producer with three operating mines in West Africa by 2022.
The company says “Excellent progress has been made on all fronts at the Yaouré Gold Mine development project in Côte d’Ivoire during the quarter. Costs are currently tracking under budget and overall development of Yaouré was 67% complete and in line with schedule expectations at the end of the quarter.
Works required to enable the first pour of gold at Yaouré by the stretch target date of late December 2020 are generally on schedule. When commissioned, Yaouréwill become Perseus’s third gold mine.
Edikan and Sissingué operations performed strongly in the June 2020 quarter, with production up 12% to 64,676ounces, production costs down 15% to US$805per ounce and AISCs down 14% to US$935 per ounce.
Gold sales for the Quarter increased 30% to 78,027 ounces, weighted average gold sales price increased 4% and notional cash-flow increased 66% to US$40 million.
A weighted average sales price of US$1544 per ounce was achieved, generating an average cash margin of US$609 per ounce, approximately US$201 per ounce more than during the March 2020 quarter.
On a half yearly basis, the Group recovered a total of 122,659ounces of gold at a weighted average production cost of US$873. After taking royalties and sustaining capital into account, the weighted average AISC was US$1,005 per ounce.
Gold sales totalled 138,042ounces at a weighted average selling price of US$1,521 per ounces, resulting in a cash margin of US$516 per ounce, well in excess of Perseus’s stated goal of generating not less than US$400 per ounce for each ounce of gold recovered.
Comparing the results this half year to those of the prior half year, Group production was down by approximately 9%, sales were up by 2% while production costs and AISCs increased by 5% and 7%respectively.
For the full 2020 financial year that ended on 30 June 2020, Perseus recovered a total of 257,639ounces of gold at a weighted average production cost of US$853 per ounce. After taking royalties and sustaining capital into account, the weighted average AISC was US$972per ounce.
Gold sales totalled 272,778ounces at a weighted average selling price of US$1,457per ounces, resulting in a cash margin of US$485per ounce, compared to Perseus’s target of US$400 per ounce or more.
