Gold mining giant Perseus Mining [ASX:PRU] posted its March 2023 quarter report earlier on Wednesday, declaring 130,275 pounds total gold produced at Perseus’s three operating gold mines, Yaouré and Sissingué in Côte d’Ivoire, and Edikan in Ghana combined.
Gold was produced at US$971 per ounce, the weighted average AISC 1.2% lower than the December quarter, and 130,275 ounces of gold in the March quarter was down 0.5%.
The gold miner’s share price was sitting around $2.36 by mid-morning, having slumped slightly after its announcement.
So far in 2023, PRU has moved up nearly 12% in share price and has managed a gain of 16% over the full year.
In its sector, and versus the wider market, PRU holds a 20% advantage in the share market:
Source: TradingView
Perseus says gold production has taken a dip
The gold miner released the March quarter’s report, revealing that its gold production has slumped slightly in comparison with the previous quarter.
A production total of 130,275 ounces of gold was posted for the past three months, which is 0.5% lower than December’s report.
Gold was produced at an AISC of US$971 (AU$1443.11) per ounce, 1.2% below the previous report.
Operational cash flow came to US$111 million during the quarter, 10% more than last quarter.
On the bright side, the average sale price of gold that was sold came to US$1,821 each ounce, a 4% increase on the previous quarter.
PRU’s average cash margin of US$850 per ounce of gold sold was 11% greater than in the prior quarter, which reflects both the improved realised gold price and the AISC decrease.
In terms of cash position, Perseus achieved the quarter’s cash generation with a US$66 million increase in overall net cash position, and available cash and bullion of US$471 million, with zero debt.
Based on a spot gold price of US$1,980 per ounce and an AUD to USD exchange rate of 0.669937 at 31 March 2023, the total cash and bullion total at the end of the quarter was US$471 million (AU$703 million) — including cash of US$429 million (AU$640 million) and 21,195 pounds of bullion, valued at US$42 million (AU$63 million).
Source: PRU
Perseus deeper dive
While the production results revealed today are slightly lower than the last update, it’s worth noting Perseus has come a long way since 2017 when the gold miner was racking up losses. This was mostly due to a wearied running of operations under the, now relatively aged, Edikan mine.
However, the tables turned once it discovered Yaouré, which soon became its most promising mine, and quickly took flagship status, generally turning things around for the miner.
Perseus also wasn’t as badly affected by oil prices and other major cost-heavy implications in metal businesses. From May 2021 to September 2022, other producers were trashed and many fell last year, yet Perseus managed to hold its ground and stood out from the rest due to relatively low costs linked to the Yaouré mine as operations ramped up with success.
That said, and considering the latest update, the gold mining giant believes that it’ll reach its gold production and cost guidance for the 2023 June half-year and financial year.
Development continues at Meyas Sand Gold Project (MSGP) in Sudan and Yaouré’s CMA Underground Project, with first results expected in the September quarter.
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