“The future looks much better than it has for some time,” Perseus managing director Jeff Quartermaine told a conference call as the company reported 48,655 ounces produced at all-in-site-costs of US$1098/oz in the March quarter – 51% and 41% respectively better than the December quarter.
The performance puts it well on track to meet June half guidance.
While Quartermaine acknowledged “one swallow does not make a summer”, he believes Edikan will now continue to deliver based on robust resource/reserve estimates and reliable processing operations.
He made the point that recent debt financing of $60 million provided by Macquarie was another signal Perseus’ business was tracking well, given the due diligence undertaken by the bank.
Quartermaine reaffirmed the rationale for the new Sissingue development in Cote d’Ivoire, an operation that at 70,000-80,000 ounces per annum represents a relatively modest production profile.
However with AISC of $645/oz, the economics are “quite robust” and the generating of a second income stream for Perseus as well as the company getting experience and establishing its credentials in Cote d’Ivoire ahead of the more significant Yaoure project, are all seen as important elements of the Sissingue venture.
Sissingue will generate funds for Yaoure and ensure Perseus is in a position to access corporate debt for the company’s third operation.
Quartermaine also indicated that should Perseus not be generating as much cash it was targeting when it came time to fund Yaoure, it would have the ability to defer the development.
He cautioned those shareholders selling stock on the assumption a rights issue would allow them to buy shares back cheaper were mistaken.
The feasibility for Yaoure will be completed late this year, with Quartermaine describing previous numbers promoted by former owner Amara as being of “academic interest” to Perseus – which is aiming to develop the project in the best economic interests of its shareholders.
Shares in Perseus were up 6% to A37c in early trade, capitalising the miner at $382 million.
