AMN - GOLD: Perseus on track for FY20 guidance

Perseus Mining produced 134,980 ounces of gold in the December 2019 half at a weighted average all-in site cost (AISC) of US$942 per ounce. With spot gold prices trading at around US$1,600 per ounce, the company's high-margin gold mining operations are evident.

The company posted a 193% increase in net profit after tax to $30.4 million and a 43% increase in EBITDA from operations to $123.9 million.

At December 31, 2019, cash and bullion on hand totalled $114.9 million and net assets were $808.7 million.

The company has maintained that it expects to produce 140,000-160,000 ounces at US$750-950 AISC per ounce in the current June half resulting in 275,000-295,000 ounces at US$850-950 AISC per ounce for the full FY20.

Perseus’ CEO and managing director Jeff Quartermaine said: “The financial results released by Perseus reveal a company that is in a robust financial position and one that is continuing to improve both operationally and in terms of growth prospects.

“At $125.8 million, our gross profit from operations before depreciation and amortisation in the December 2019 Half Year was materially better than in the past.

“After depreciation and amortisation and other charges were brought to account, our reported net after-tax earnings for the six-month period of $30.4 million was $20 million more than the amount earned in the corresponding period last year, representing a major turnaround in our business.

“Excluding $47.4 million of bullion on hand, our cash balance at the end of December 2019 was $67.5 million, slightly more than the amount at the end of 2018, notwithstanding the large investment (US$99 million to date) that has been made during the year in the development of our third gold mine, Yaouré, which at year-end was approximately 33% complete and is now expected to produce first gold in December 2020.

“Our strong cash flows have largely been driven by unit cost reductions and of course an improvement in the price of gold.

“Perseus is in great shape due to the hard work of many and we are looking forward to maintaining our forecast growth trajectory and continuing to generate material benefits for all of our stakeholders in coming periods,” he added.

www.perseusmining.com