• Perseus published its annual report this week and is on its way to producing 500,000 ounces of gold a year. 
  • It has an exploitation permit for its planned Yaouré mine in Côte d’Ivoire. 
  • The mine is a key component in the company’s plan to increase production by more than 228,000 ounces a year. 
  • Perseus hopes to achieve the milestone production take by cash margins of US$400 an ounce or more by the 2022 financial year. 

We achieved both cost and production guidance, finishing the year with production of 271,824 ounces of gold at all-in costs of US$960 an ounce, with both our Edikan Gold Mine in Ghana and Sissingué in Côte d’Ivoire performing generally as expected.

Perseus Mining managing director and CEO Jeff Quartermaine 

Perseus Mining Limited (ASX:PRU) (TSX:PRU) (OTCMKTS:PMNXF) produced more than 270,000 ounces at its West African gold operations Edikan and Sissingué in the 2018-19 financial year as it continued to plan an increase in company production through its third operating mine – Yaouré.

The Western Australian company is hoping to pour first gold at Yaouré in Côte d’Ivoire in December 2020.

It would then move towards an increase in company production to 500,000 ounces of gold a year company-wide.

Subiaco-based Perseus received development approval for the planned project in May 2019 during the final quarter of last financial year.

Perseus managing director and CEO Jeff Quartermaine highlighted the company’s achievements in the 2019 financial year, writing in the company’s annual report, “We achieved both cost and production guidance, finishing the year with production of 271,824 ounces of gold at all-in costs of US$960 an ounce.

Quartermaine noted the Edikan Gold Mine in Ghana and Sissingué mine in Côte d’Ivoire had performed “generally as expected.”

The senior executive highlighted growing strength in the company’s balance sheet and a paying down of debt during the financial year.

Rapid Yaouré progress

Quartermaine said, “As we look to the future, the cash on hand combined with proceeds available under an undrawn US$150 million debt facility secured to finance construction of Yaouré is allowing us to see rapid progress on that project.

“Based on the current schedule, we should be producing gold at Yaouré by the end of 2020 and we’ll be working very hard over the next 12 months to make sure that happens.”

The MD flagged a concerted effort to improve the business in a report to shareholders, flagging an effort to increase margins at Edikan as one such program.

Perseus’ approach, which can be rolled out in other business units, was to slightly decrease production in order to produce gold at a lesser cost.

Further exploration

The company is looking to the future and planning further exploration at Edikan and Sissingué as it prioritises Yaouré for its forward plan.

Quartermaine said, “With all this development happening at Yaouré, and another solid year of production expected from Edikan and Sissingué, and further exploration at our tenements surrounding both of those mines, FY2020 will certainly be yet another busy year for Perseus.”

Perseus plans to fund its Yaouré mine with a US$150 million debt facility provided by Macquarie Bank Limited of Australia, Nedbank Limited (Corporate and Investment Bank) of South Africa and Société Générale of France in June 2019.

Perseus Mining will hold its annual general meeting at Pan Pacific Perth Hotel, 207 Adelaide Terrace, Perth, at 3pm Western Standard Time (6pm EST) on November 29, 2019.