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Perseus Mining Limited: Activity Report for March 2019 Quarter

Not for release to US wire services or distribution in the United States

PERTH, Western Australia, April 15, 2019 (GLOBE NEWSWIRE) -- Perseus Mining Limited (“Perseus” or the “Company”) (TSX & ASX: PRU) reports on its activities for the three month period ended March 31, 2019 (the “Quarter”). An executive summary is provided below. However, full details of activities in the March Quarter, including reconciled production and all-in site cash costs, are included in the Company’s March 2019 Quarterly Activity Report released to the market on April 16, 2019. The full report is available for download from www.perseusmining.com, www.asx.com.au and www.sedar.com.

Consistently strong operating performance at Edikan and Sissingué

  • March 2019 quarter gold production, all in site costs (AISC) and sales were:
Parameter Unit Edikan Sissingué Perseus
Group
Gold produced Ounces 44,680 22,464 67,144
Total All-In Site Cost (AISC) US$/ounce 900 753 851
Gold sales Ounces 42,528 21,310 63,838
Average sales price US$/ounce 1,283 1,285 1,284
  • Gold production of 67,144 ounces was within 1.5% of the December 2018 quarter’s gold production of 68,078 ounces;
  • At US$851 per ounce, quarterly AISC were 19% less than the December 2018 quarter’s AISC and 15% less than the AISC in the December 2018 half year;
  • Group gold production is on target to achieve June 2019 half year production guidance of 130-150,000 ounces and AISCs are also on track to achieve cost guidance of US$850-US$1,000 per ounce; and
  • Perseus’s weighted average cash margin of US$433 per ounce during the quarter generated notional cashflow of US$29.1 million, more than double that of the prior quarter.

Development of Yaouré, Perseus’s 3rd gold mine, remains on track

  • An offer by a banking syndicate to provide a US$150 million cash advance facility to partially fund the development of Yaouré has been accepted;
  • Yaouré’s financing plan will be fully funded by debt, existing cash and bullion of US$81 million, material future cash inflows from operations and proceeds from the exercise or underwriting of Perseus warrants;
  • The Yaouré Exploitation Permit (EP) was not granted by the Ivorian government as expected during the quarter. With all pre-conditions satisfied, imminent granting of the EP appears highly probable;
  • Engineering and supply contractor, Lycopodium, and Perseus’s in-house construction team are ready to begin development activities upon the granting of the EP; and
  • Subject to no further delays in permitting, Perseus is targeting pouring its first gold at Yaouré in December 2020.

Continued strengthening of the Perseus Group’s Balance Sheet

  • US$29.1 million of notional cashflow generated by operations for the quarter, an increase of 116%;
  • US$80.8 million of cash and bullion on hand at March 31, 2019, up 24%;
  • Existing bank debt reduced by US$4 million to US$44.5 million during the quarter; and
  • Net cash and bullion (i.e. cash and bullion less bank debt) of US$36.3 million at quarter-end is US$19.9 million or 121% more than the net balance of US$16.4 million at December 31, 2018.
. PROGRAM FOR THE JUNE 2019 QUARTER  

Edikan

  • Produce gold at a total all-in site cost is in line with June 2019 Half Year guidance;
  • Continue implementing planned Continuous Improvement initiatives aimed at increasing gold production and reducing AISC; and
  • Commence drilling of conceptual granite-hosted mineralisation north of the Esuajah North pit at Wampam West.

Sissingué

  • Produce gold at a total all-in site cost in line with June 2019 Half Year guidance;
  • Continue implementing planned Continuous Improvement initiatives aimed at increasing gold production and reducing AISC; and
  • Complete implementing operational measures to mitigate and minimise future wet weather-related impacts on operations; and
  • Continue auger, AC and RC drilling at the Papara-Tiongoli, Zanikan and other prospects within trucking distance of Sissingué, with the aim of identifying the potential for additional Mineral Resources that can be processed at the Sissingué processing facility.
  • Commence RC drilling of the Fimbiasso South and other targets on the Mahalé permit.

Yaouré

  • Subject to the granting of an Exploitation Permit, and formal Board approval implement a programme of early work to establish the project site as a precursor to commencing full scale construction later in the quarter;
  • Subject also to the granting of an Exploitation Permit, commence negotiation of a Mining Convention for the mine;
  • Commence auger drilling over the Degbezere soil anomaly on the Yaouré West permit.

Corporate

  • Finalise documentation for the US$150 million corporate cash advance facility;
  • Arrange for the underwriting of unexercised Perseus warrants that mature on April 19, 2019;
  • Continue implementation of measures aimed at embedding agreed corporate values throughout the organisation.

Jeff Quartermaine
Managing Director and Chief Executive Officer
April 16, 2019

To discuss any aspect of this announcement, please contact:

Managing Director:  Jeff Quartermaine at telephone +61 8 6144 1700 or email jeff.quartermaine@perseusmining.com;
General Manager BD & IR:  Andrew Grove at telephone +61 8 6144 1700 or email andrew.grove@perseusmining.com
Media Relations:  Nathan Ryan at telephone +61 4 20 582 887 or email nathan.ryan@nwrcommunications.com.au (Melbourne)

Competent Person Statement:

All production targets for Edikan, Sissingué and Yaouré referred to in this report are underpinned by estimated Ore Reserves which have been prepared by competent persons in accordance with the requirements of the JORC Code. 

The information in this report that relates to the Mineral Resource and Ore Reserve estimates for the EGM deposits was first reported by the Company in compliance with the JORC Code 2012 and NI43-101 in a market announcement released on 29 August 2018. The Company confirms that it is not aware of any new information or data that materially affect the information in that market release and that all material assumptions underpinning those estimates and the production targets, or the forecast financial information derived therefrom, continue to apply and have not materially changed. The Company further confirms that material assumptions underpinning the estimates of Ore Reserves described in “Technical Report — Central Ashanti Gold Project, Ghana” dated 30 May 2011 continue to apply.

The information in this report that relates to Mineral Resources for Sissingué was first reported by the Company in compliance with the JORC Code 2012 and NI43-101 in a market announcement released on 15 December 2016 and includes an update for depletion as at 30 June 2018 as well as an adjustment of the model constrained to a US$1,800/oz pit shell which were reported in a market announcement on 29 August 2018. The information in this report that relates to Mineral Resources for Fimbiasso was first reported by the Company in compliance with the JORC Code 2012 and NI43-101 in a market announcement released on 20 February 2017 and includes an adjustment of the model constrained to a US$1,800/oz pit shell which was reported in a market announcement on 29 August 2018. The information in this report that relates to Ore Reserves for Sissingué and Fimbiasso was first reported by the Company in compliance with the JORC Code 2012 and NI43-101 in a market announcement released on 31 March 2017 and includes an update for depletion as at 30 June 2018 which was reported in a market announcement on 29 August 2018. The Company confirms that it is not aware of any new information or data that materially affect the information in these market releases and that all material assumptions underpinning those estimates and the production targets, or the forecast financial information derived therefrom, continue to apply and have not materially changed. The Company further confirms that material assumptions underpinning the estimates of Ore Reserves described in “Technical Report — Sissingué Gold Project, Côte d’Ivoire” dated 29 May 2015 continue to apply.

The information in this report in relation to Yaouré Mineral Resource and Ore Reserve estimates was first reported by the Company in compliance with the JORC Code 2012 and NI43-101 in a market announcement on 3 November 2017. The Company confirms that all material assumptions underpinning those estimates and the production targets, or the forecast financial information derived therefrom, in that market release continue to apply and have not materially changed. The Company further confirms that material assumptions underpinning the estimates of Ore Reserves described in “Technical Report — Yaouré Gold Project, Côte d’Ivoire” dated 18 December 2017 continue to apply. 

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 and the Sissingué Gold Mine without any major disruption, development of a mine at Yaouré, 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.