Perseus Mining Limited

Perseus Mining Limited

August 30, 2013 04:36 ET

Perseus Mining Records Profit of $41.4 Million for FY2013

PERTH, WESTERN AUSTRALIA--(Marketwired - Aug. 30, 2013) -


Perseus Mining Limited ("Perseus" or the "Company") (TSX:PRU)(ASX:PRU) is pleased to announce a net profit after tax of $41.4 million, or 9.0 cents per share, for the 12 months ended June 30 2013.


  • Profit for the year attributable to owners of the parent (i.e. excluding minority interests) of $38.4 million or 8.4 cents per share, representing a return on equity of 8.0% or a return on total funds employed of 7.2%.

  • Operating cash flow of $46.7 million for the 12 months, or 10.2 cents per share.

  • Total market value of cash, bullion and investments of $45.3 million at June 30 2013.

  • Net assets of $481.3 million and an excess of current assets over current liabilities of $34.2 million.

  • Company debt free following repayment in full of the renegotiated US$100 million revolving line of credit.

  • At the Company's initiative, the available commitment limit of the revolving credit facility has been reduced to nil post year-end generating cost savings of up to $2 million per annum.

  • Forward sales contracts for 170,000 ounces of gold at an average price of US$1,408/oz for delivery in quarterly instalments up to December 2015, representing 5% of the Company's Ore Reserves.

  • Gold production at the Company's Edikan Gold Mine in Ghana of 208,444 ounces at an all-in site cash cost (including production, royalties, development and sustaining capital) of US$1,150/oz.

  • Implementation of Company-wide programme to reduce operating and capital costs including a 15% reduction in all directors' fees for the next financial year.

  • Decision to proceed with development at the Sissingue Gold Project in Cote d'Ivoire deferred until January 2014 as part of the company's capital conservation initiative.

Managing Director Jeff Quartermaine Comments

"Our financial performance in FY2013 was very solid, especially taking into account the recent volatility in gold price and technical challenges that needed to be overcome during the year at our flagship operation, the Edikan Gold Mine, in Ghana."

"Our focus for FY2014 will be on building on our FY2013 performance by improving operational efficiency as a means of maximising the cash margin at Edikan."

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 Tengrela, 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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