Perseus Mining Limited

Perseus Mining Limited

February 12, 2016 05:52 ET

Perseus Mining Limited Earns A$12.0 Million Profit for Half Year to December 31, 2015

PERTH, WESTERN AUSTRALIA--(Marketwired - Feb. 12, 2016) -


Perseus Mining Limited ("Perseus" or the "Company") (TSX:PRU) (ASX:PRU) is pleased to announce a profit after tax ("PAT") of A$12.0 million, or 2.3 cents per share, for the Half Year to December 31, 2015 ("HY2015").

Highlights of HY2015 results include:

  • 5% increase in revenue
  • FX gain of A$17.9M
  • Cash balance of A$94.6M, or 17.9cps - A$51.5M (119%) more than HY2014
  • Combined value of cash and bullion of A$99.1M, or 18.7cps at the end of HY2015 - up A$41.3M or 71% on HY2014
  • Hedge book of 120,267 ounces sold forward at an average price of US$1,276/oz with a value of
  • Working capital of A$164.9M - an increase of A$39.6M, or 32%, on HY2014
  • No third party debt.

The $12.0 million PAT is A$29.2m less than in the corresponding period in 2014 due mainly to a A$21.2M decrease in foreign exchange ("FX") gain on the translation of inter-company loans due to the weakening of the Australian dollar to the United States dollar being less in this Half Year compared to 2014, and a A$4.8M exploration impairment charge.

At an operational level, Perseus's Edikan Gold Mine in Ghana recorded material cost reductions during HY2015 when compared to HY2014, including:

  • Mining unit costs decreased 48% to US$2.40/t
  • Processing unit costs decreased 15% to US$9.19/t
  • G&A costs decreased 21% to US$1.38M/month

This material reduction in unit costs has positioned the company well heading into an intensive waste stripping exercise to open up new pits on the Eastern side of the mining lease. A 137% increase in total material moved, compared to HY2014, translated into only a 15% increase in total costs comparatively. With the operation returning to average stripping ratios towards the end of the Half Year and access gained to higher grade fresh ore supplies, production for the remainder of the Financial Year 2016 is expected to increase.

Managing Director Jeff Quartermaine Comments:

"Favourable foreign exchange movements have certainly improved our HY2015 profit result in A$ terms but significant cost savings and productivity gains underpin the performance as does a prudent approach to gold price risk management which has delivered an average gold price of US$1,280/oz in a falling gold market.

Our debt free working capital base of A$165M has placed us in a strong position relative to many in our sector to deliver growth in total shareholder returns notwithstanding the volatile market conditions in which we are currently operating."

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 without any major disruption, development of a mine at Sissingué, 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.

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