Perseus Mining Reports Strong Gold Production and Cost Guidance for 2024

Perseus Mining Limited has announced impressive gold production and cost guidance for the June 2024 half year and full 2024 financial year. In the March 2024 quarter, Perseus produced 127,471 ounces of gold at an all-in site cost (AISC) of US$1,091 per ounce across its three operating gold mines in Côte d'Ivoire and Ghana. This brings the company's financial year-to-date production to 389,048 ounces. "Perseus has a great opportunity to reach or potentially surpass its annual production guidance of 491,000-517,000 ounces of gold for the 2024 financial year," stated Jeff Quartermaine, Perseus's CEO.

The company's strong operating performance is expected to continue for the remainder of the June 2024 half year, with gold production guidance unchanged at 226,000-254,000 ounces at an AISC of US$1,180 to US$1,340 per ounce. Perseus's Yaouré mine in Côte d'Ivoire contributed around 48% of total production in the March quarter. The company also provided updates on its Edikan, Sissingué, Fimbiasso, Bagoé, and Meyas Sand Gold Project operations in Ghana and Côte d'Ivoire, confirming that the material assumptions underpinning the estimates and production targets continue to apply and have not materially changed.

Perseus achieved another strong quarter of cash generation, with a $60 million net increase in its overall net cash position compared to the prior quarter. The company now has AUD702 million in net cash and bullion, and AUD300 million in undrawn credit facilities available to fund its growth and return capital to shareholders. Perseus also has a hedged position of 352,000 oz at a weighted average sales price of $2,101/oz, providing downside price protection for about 25% of its currently forecast gold production for the next three years.

Why this matters: Perseus Mining's impressive production and cost performance solidifies its position as one of the world's better performing mid-tier gold producers. The company's strong financial position and cash generation enable it to fund growth projects and deliver returns to shareholders.

Perseus Mining CEO Jeff Quartermaine expressed confidence in the company's ability to meet or exceed its annual production guidance for the 2024 financial year. With consistent operating performance across its three mines and a strong financial position, Perseus remains well-positioned to continue its growth trajectory. The company also advanced its takeover offer for OreCorp Limited during the quarter, with the OreCorp Board endorsing the offer.

Key Takeaways

• Perseus Mining reported impressive Q3 2024 gold production of 127,471 oz at AISC of $1,091/oz.
• Company expects to meet or exceed FY2024 production guidance of 491,000-517,000 oz at AISC of $1,180-$1,340/oz.
• Perseus has $702M in net cash and $300M in undrawn credit facilities to fund growth and returns.
• Perseus has a 352,000 oz gold hedge at $2,101/oz, providing price protection for 25% of production.
• Perseus advanced its takeover offer for OreCorp Limited during the quarter, with OreCorp Board endorsement.