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Perseus Mining boosts half-year revenue 90%, achieves annual gold production target of 500,000 ounces

Last updated: 18:29 22 Feb 2022 EST, First published: 18:12 22 Feb 2022 EST

Perseus Mining Ltd - Perseus Mining increases revenue 90% from previous half year after achieving gold production of 500,000 ounces per annum

Perseus Mining Ltd (ASX:PRU, TSX:PRU, OTC:PMNXF) has achieved the target of annual gold production of 500,000 ounces and increased half-year revenue by 90% to A$545.7 million compared to the corresponding half year period of FY21.

The company made solid financial gains across the board during the half year to December 31, 2021, increasing earnings before interest, taxes, depreciation and amortization (EBITDA) by 101% to A$252.4 million and profit after tax 159% to A$126.9 million.

With operating cash flow up 137% in the same period to A$245.9 million, Perseus has declared an interim dividend of A$0.81 per share.

Perseus operates three gold mines in West Africa, with its third mine, Yaouré, pouring first gold in December 2020.

“Strong operating performance”

“Our financial results for the December 2021 half year are indicative of our strong operating performance at all levels of our business during the period,” Perseus Mining managing director and CEO Jeff Quartermaine said.

“With three gold mines in operation, we are now producing gold at our targeted rate of approximately 500,000 ounces of gold per year, and with excellent drill results coming from our organic growth programs we are confident of at least maintaining this level of production and associated profitability well into the future.

“We have achieved these results in a West African setting with the COVID pandemic providing a backdrop, which I believe speaks volumes of the efforts of individuals in our teams at the mines, in the field and in our offices across Africa and Australia.

“It also underlines our collective commitment to our mission of creating material benefits for all of our stakeholders, in fair and equitable proportions.”

Gold production for the group during the six months totalled 241,164 ounces at an all-in site cost including production costs, royalties and sustaining capital (AISC) of US$949/ounce.

This included 139,747 ounces produced at Yaouré at an AISC of US$687/ounce; 34,132 ounces produced at Sissingué at an AISC of US$917/ounce; and 67,285 ounces of gold produced at Edikan at an AISC of US$1,509/ounce.

Gold sales during the half-year totalled 238,136 ounces at an average sales price of US$1,663/ounce. This included 139,724 ounces sold by Yaouré at a weighted average sales price of US$1,695/ounce; 34,870 ounces sold by Sissingué at a weighted average sales price of US$1,631/ounce; and 63,541 ounces sold by Edikan at an average sales price of US$1,608/ounce.

During the six months, the group sold 87% more gold, at a price that was approximately 1% higher than in the 2020 comparative period.

At December 31, 2021, the company’s net tangible assets amounted to A$1,020.3 million, or A$0.83 per share which is around 18.6% more than at the end of the HY2020.

FY22 production and cost guidance

Perseus expects this positive trend of improved earnings and cashflow to continue in line with the corporate objective of producing more than 500,000 ounces of gold per year.

Gold production and cost guidance for the financial year 2022 is:

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Perseus Mining Ltd (ASX:PRU, TSX:PRU, OTC:PMNXF) managing director and chief executive officer Jeff Quartermaine breaks down the highlights of the company’s September quarter. Gold production for the period came in at 132,804 ounces at an all in sustaining cost of US$937 per ounce. The average...

on 10/23/2023