Africa’s gold mining powerhouse, Perseus Mining, has reported a remarkable surge in its cash and bullion balance, catapulting it to an impressive $594 million. This financial feat, along with its debt-free status and an additional $300 million in untapped debt capacity, places the company in a prime position for substantial growth or potential capital returns to its shareholders.
Perseus Mining’s Managing Director and CEO, Jeff Quartermaine, affirmed the company’s excellent financial standing. He emphasized that the robust cash flow positions Perseus to continue expanding its operations or consider rewarding its investors, should that prove to be the optimal use of funds.
The company’s performance in the third quarter of this year has been nothing short of stellar. Gold production and all-in sustaining costs (AISC) have surpassed internal targets, reinforcing Perseus Mining’s reputation as a formidable player in the industry.
Operating across its Yaouré and Sissingué mines in Côte d’Ivoire, as well as the Edikan mine in Ghana, Perseus Mining collectively yielded an impressive 132,804 ounces of gold in the last quarter. Notably, this was achieved at an average production cost of $805 per ounce, with an AISC of $937 per ounce.
While gold sales experienced a 17.5% decrease quarter-on-quarter, primarily due to timing factors in sales transactions, Perseus Mining maintained a solid average gold price realization of $1,936 per ounce. The company’s average cash margin for the quarter stood at $999 per ounce, an 8% improvement compared to the previous quarter’s margin of $926 per ounce.
In terms of financial performance, Perseus Mining reported a notional operating cash flow from operations totaling $132 million, an increase of $5 million compared to the previous quarter. This boost was driven by the higher realized gold price and reduced AISC, offset slightly by a minor dip in gold production.
Perseus Mining’s impressive financial strength, combined with its operational excellence, positions the company for continued success in the global gold mining industry.
With the gold market continuing to show resilience, Perseus Mining is poised to capitalize on its strategic advantages and deliver sustained value to its stakeholders. Whether through further expansion or enhancing shareholder returns, the future looks promising for this Africa-focused mining powerhouse.
Source: [Mining Weekly]
