AMN - GOLD: Perseus maintains strong cash flow

Perseus Mining produced a combined total of 57,983 ounces of gold from the Edikan mine in Ghana and the Sissingué mine in Côte d’Ivoire during the March quarter. This compared to 69,155 ounces produced in the prior period.

The company generating a notional cash flow of about US$24 million from operations during the quarter while maintaining its targeted cash margin of more than US$400 per ounce of gold produced.

Sissingué continued delivering strong results, while temporary technical challenges detracted from Edikan’s recent strong production and cost performance. These challenges have since been addressed.

Significant progress has been made on all fronts at the Yaouré gold development project in Côte d’Ivoire.

Costs are under budget and overall development of Yaouré was 52% complete and in line with schedule expectations at the end of the quarter.

Works required to enable the first pour of gold at Yaouré by the stretch target date of late December 2020 are generally on schedule, although it is noted that slippage to the schedule may occur if current government-imposed travel restrictions arising from the COVID-19 crisis are not relaxed in coming months.

When commissioned, Yaouré will be Perseus’s third gold mine.

During the quarter, the COVID-19 pandemic has presented a series of challenges to operational continuity at Perseus’ West African operations.

Notwithstanding this, the company has been well placed to weather the crisis with seasoned management teams at each of its West African sites and in Perth, who have successfully managed several crises in West Africa in recent years, including the Ebola outbreak during 2014-2016.

There were no reported cases of COVID-19 at any of Perseus’s three operating sites nor in surrounding communities.

The Ebola outbreak has provided Perseus with tested crisis management capabilities and systems that are material in guiding the company.

Supply chains for each of Perseus’s operating sites remain open in Ghana and Côte d’Ivoire although the movement of local and foreign employees is impacted by government-imposed travel restrictions.

Work rosters have been materially extended to accommodate travel restrictions.

The company has implemented a series of protocols at each of its operating sites aimed at eliminating the possibility of infection of its employees.

While every effort is being applied to maintain ‘business as usual’, and achieving production and costs as close as possible to previously stated guidance remains a top priority, the success of this approach cannot be guaranteed due to the threat of COVID-19.

As a result, Perseus has withdrawn its previously published gold production and cost guidance for the half-year and financial year ending June 30 2020.

www.perseusmining.com