PRECIOUS METALS

Yay for Yaoure as Perseus' third mine gets off the mark

PERSEUS Mining expects to reach commercial production next quarter at its new Yaoure operation in Cote d’Ivoire and be a 500,000 ounce per annum company next financial year following the first gold pour at its third mine.

This is now a mine: Yaoure, Cote d'Ivoire

This is now a mine: Yaoure, Cote d'Ivoire

The production of first gold at the US$265 million development was reportedly 4-5 weeks ahead of schedule and consistent with its "stretch target" of production by the end of 2020.

Feasibility work has Yaoure producing an average of about 215,000oz per annum at an all-in site cost of about $750/oz in its first five years of life.

An updated life-of-mine plan is set to be reported next quarter.

Perseus started mining in West Africa at its Edikan project in Ghana, with Sissingue in Cote d'Ivoire brought into production in more recent years.

The trio are slated to yield more than 500,000oz combined at a cash margin of more than $400/oz.

Available cash and bullion on hand at September 30 stood at $147.4 million, with corporate debt at the same time fully drawn to the facility limit of $150 million.

Shares in Perseus closed up 6% to A$1.29 on Thursday, capitalising the company at nearly $1.6 billion.  The stock was unchanged in early trade today.

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