Perseus Mining Reports on Half Year Ending 31 December 2020
PERTH, Feb. 23, 2021 - Perseus Mining Ltd. ("Perseus" or the "Company") (TSX & ASX: PRU) has released its Interim Financial Report for the six months ending December 31, 2020 ("December 2020 Half Year" or the "Half Year").
The Perseus group produced a total of 137,386 ounces of gold in the December 2020 Half Year, 2% more than in the corresponding six-month period in 2019. In the same period, the weighted average all-in site costs ("AISC"), including the costs of production, royalties and sustaining capital, increased by 6% relative to the December 2019 half year, averaging US$1,000 per ounce of gold produced.
Reflecting the successful transition to an efficient multi-mine, multi-jurisdictional gold producer and a stronger market for gold, Perseus recorded a 61% increase in the Group's net profit after tax to A$49.1 million during the December 2020 Half Year compared to the corresponding period in 2019. This profit was based on the strong operating performance at the low cost Sissingu? Gold Mine in C?te d'Ivoire, (55,909 ounces of gold at an AISC US$643 per ounce), combined with steady gold production at the Edikan Gold Mine (78,790 ounces of gold at US1,253 per ounce). Perseus's third gold mine, Yaour?, where first gold was poured in December 2020, contributed a total of 2,687 ounces to the Group's total half-yearly gold production although with net costs being capitalised until the declaration of Commercial Production, the mine's activities did not contribute to the Half Year earnings result.
Perseus's net profit after tax of A$49.1 million or 3.0 cents per share attributable to the owners of the parent company, materially exceeded the net profit after tax of A$30.4 million or 2.6 cents per share earned in the previous corresponding half year. This improved performance was predominantly due to:
- A period-on-period decrease of A$32.5 million in the depreciation and amortisation expense relating to gold production.
- Administration and other corporate expenses decreasing to A$9.8 million from A$11.5 million in the December 2019 half year.
- A decrease in income tax expense, which at A$8.4 million, compared favourably to the expense of A$12.9 million incurred in the corresponding period in 2019.
- A foreign exchange loss of A$13.2 million, A$20.2 million more in the prior year when a foreign exchange gain of A$7.0 million was recorded. The loss occurred due to an appreciation in the value of the Australian dollar against the US dollar and revaluation of intercompany loans.
As at December 31, 2020, the total value of cash (A$120.5 million) and bullion on hand (A$32.7 million) was A$153.2 million, or A$38.3 million more than at December 31, 2019. Operating cash flows increased by A$30.4 million in the Half Year to A$103.6 million, or 8.6 cents per share, as revenue increased and payments to suppliers and employees decreased. A total of A$150.6 million of cash was invested during the period, including A$111.9 million on the development of the Yaour? Gold Mine and A$11.0 million on exploration. A net total of A$27.6 million of borrowings were repaid in cash during the period and a further A$7.6 million was paid in cash for borrowing costs.
The Company's net tangible assets on December 31, 2020 were A$853.5 million or A$0.70 per share including cash and bullion on hand. Total interest-bearing liabilities stood at A$168.9 million, A$48.7 million less than on June 30, 2020.
Looking to the future, Perseus's financial performance is expected to remain strong with continuing solid gold production and an improving cost structure at its two operating gold mines. Development of Yaour?, Perseus's third operation, will be a major focus in the 2021 financial year. Production and cost guidance for the 2021 financial year is as follows:
| Parameter | Units | Production and Cost Guidance | ||
| December 2020 Half Year Actual | June 2021 Half Year | Full Fiscal Year 2021 | ||
| Group Gold Production | ounces | 137,386 | 175,000 - 190,000 | 312,386 - 327,386 |
| Average All-In Site Costs | $US per ounce | 1,000 | 950 -1,150 | 970 - 1,067 |
| CEO and Managing Director, Jeff Quartermaine Comments: |
"The financial results released by Perseus today are further evidence of the continuing transition of our Company from a junior gold producer to a multi-mine, multi-jurisdictional business. In coming periods, the trend of Perseus's steadily increasing earnings and cashflow is expected to continue, boosted by a material contribution from our third mine, the Yaour? Gold Mine. The construction of Yaour? was completed late in the December Half Year and operations are steadily ramping up to optimum performance levels. Heading into 2021, Perseus is in a strong financial position to continue the growth of our business through both organic means and by being positioned to take advantage of M&A opportunities that may present and offer attractive returns on our investment. The results that we have released today, and the strong financial position in which Perseus is now positioned, reflect the focused efforts of both our on-site and corporate office teams, all of whom have worked with dedication and commitment in a period of uncertainty and challenge brought about by the COVID-19 pandemic. I thank them sincerely for their efforts in delivering the results published today." |
This release was approved for release by the Board.
| For further information, please contact: | |
| Managing Director: | Jeff Quartermaine at telephone +61 8 6144 1700 or email |
| jeff.quartermaine@perseusmining.com; | |
| Chief Financial Officer: | Lee-Anne de Bruin at telephone +61 8 6144 1700 or email |
| leeanne.debruin@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, Sissingu? and Yaour? 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 Sissingu? 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 B?l? 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 - Sissingu? Gold Project, C?te d'Ivoire" dated 29 May 2015 continue to apply.
The information in this report in relation to Yaour? 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 - Yaour? Gold Project, C?te d'Ivoire" dated 18 December 2017 continue to apply.
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 Sissingu? Gold Mine and achieving commercial production at the Yaour? 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.