geodan
8 years ago
2 New PRs + SeekingAlpha on Perseus
Perseus Mining (OTCPK:PMNXF) - Still Flying From SeekingAlpha in April
Current Price: C$0.43
Shares Outstanding: 529.3 million
Cash: C$92.7 million
Target Price: C$0.60
Total Return to Target: 40%
52-Week Range: C$0.26 - C$0.48
Since initiation, Perseus Mining is up 30%, and like the other mid-tier producers, has major room to climb. Perseus' performance has somewhat lagged behind its peers, however, its flagship Edikan gold mine in Ghana appears to finally be operating in-line with management expectations. The lower grades and higher AISC may be of some concern, nonetheless, we believe management is being overly conservative in its guidance. More importantly, the stock is still undervalued even utilizing the higher operating costs.
As mentioned earlier, Sissingué is Perseus' next project in line, and according to management's last update, will require less than $100 million for development. PRU is sitting on almost $100 million in cash and no debt so has good options for funding. We still imagine the management team taking on debt for the majority of the financing. Sissingué has an updated feasibility study that was released in April 2015 and early work has already commenced in preparation for construction. We will revise PRU's price target accordingly as Sissingué advances and de-risks accordingly.
In late February, Perseus announced the friendly takeover of Amara Mining which adds the advanced stage Yaoure project in Cote d'Ivoire to the company's pipeline. Yaoure comes with a PFS, which was completed in Q1 2016 and sets to deliver 203,000 ounces of gold annually over 15 years at average AISC of $667 per ounce. Total upfront capital cost is expected to be $334 milion, and touts a post-tax NPV of $555 million at $1,200 gold.
6
Source: Corporate presentation.
While the takeover of Amara does not bring any immediate production to the table, Perseus' attributable proved & probable ore reserve increases by 160% to 7.3 million ounces, and M&I resources increase by 112% to 14 million ounces. Not to sound like a broken record, the pro-forma portfolio has incredible optionality moving forward.
This year Perseus will continue to optimize operations and decrease operating costs at Edikan. In the background we expect Sissingué or Yaoure to be sold, but some additional work may be needed to make the assets more attractive to potential suitors. We expect it will be Sissingué up for sale, and the company will dedicate the bulk of its growth efforts fine-tuning the more costly Yaoure. Either way, Perseus has good production to rely on for cash flow with a proven management team that can get things done regardless of the markets. We are excited with upcoming updates as we expect the grades to become higher and the costs to become lower.
Disclaimer: Palisade Global Investments Limited and/or its employees holds shares of EDV, AR, and PRU. The information contained in such write-ups is not intended as individual investment advice and is not designed to meet your personal financial situation. Information contained in this report is obtained from sources we believe to be reliable, but its accuracy cannot be guaranteed. The opinions expressed in this report are those of Palisade Global Investments and are subject to change without notice. The information in this report may become outdated and there is no obligation to update any such information.
Aug29thPR: An intensive work programme was undertaken at Edikan during the second half of FY2016 which has resulted in materially improved operating performance as well as reduced unit costs compared to FY2015: mining cost per tonne of material mined reduced by 40%; processing cost per tonne of ore milled reduced by 11%; and G & A cost reduced by 19%. Coupled with a period of accelerated capital investment to achieve power self-sufficiency, processing plant improvements, waste stripping and infrastructure and relocation housing, all of which are scheduled to finish by December 2016, Edikan is expected to enter a period of sustained strong positive cash flows from early calendar year 2017.
Following execution of a Mining Convention for Perseus's second operating mine, the Sissingué Gold Mine in Côte d'Ivoire ("Sissingué") in July 2015, execution plans for the full scale development of the project have been activated and production of first gold from Sissingué is scheduled to occur in the December 2017 quarter.
On April 18, 2016, Perseus acquired Amara Mining plc giving Perseus ownership of one of West Africa's highest quality pre-development stage projects, the Yaouré Gold Project in Côte d'Ivoire ("Yaouré"). Contracts for all material work packages required to complete the Yaouré definitive feasibility study have been awarded and work on the study is well underway.
On June 20, 2016, Perseus announced an equity placement and an accelerated entitlements offer. In total A$102 million of equity capital was raised from new and existing institutional and retail investors. Perseus has also advanced negotiations for a project finance debt facility of US$60 million to be used to partially fund the development of Sissingué with Macquarie Bank and BNP Paribas. Final credit approval and documentation of the debt facility are anticipated to be completed early in the 2017 financial year.
Combining proceeds of the equity capital raising and planned debt facility with expected future positive cash flows from Edikan from January 2017 and Sissingué from the March quarter of 2018, means that Perseus is well placed to fund its growth strategy that is expected to transform the Company from being a single-country, single-mine enterprise into a multi-mine, multi-country gold producer with production in excess of 500,000 ounces of gold within five years.
Other key points of the 2016 Financial Year results include:
24% decrease in revenue
7% increase in expenses
Cash balance of A$151.2M, or 15.1cps - A$47.5M (46%) more than FY2015
Combined value of cash and bullion of A$166.0M, or 16.5cps at the end of FY2016 - up A$38.7M or 30% on FY2015
Working capital of A$159.7M - a decrease of A$17.9M, or 10%, on FY2015
No third party debt.
Edikan produced the following results in the 2016 Financial Year:
Gold production 153,900 ounces
All In Site Costs US$1,351/oz
Average sale price of gold US$1,224/oz.
Marketwired - Sept. 4, 2016)
West African gold producer Perseus Mining Limited (PRU.TO)(PRU.TO) ("Perseus") advises that two further milestones have been achieved on the path to implementing its strategy of transforming Perseus into a multi-jurisdictional, multi-mine producer of in excess of 500,000 ounces of gold per year by 2021.
Credit Approval of Project Debt Facility for the Sissingué Gold Project ("Sissingué")
Full credit committee approval of a US$60 million project debt facility has been received by Macquarie Bank Limited and BNP Paribas, the prospective lenders to Sissingué. Final documentation and satisfaction of conditions precedent for the facilities are due for completion in the December 2016 quarter at which time funds should be available for draw down.
In the interim, development work at Sissingué, funded from the proceeds of a recent equity offering by Perseus, has advanced and the project is on schedule for the production of first gold in the December 2017 quarter.
Appointment of a Chief Operating Officer
In anticipation of the expansion of its operating activities to include both the Edikan Gold Mine in Ghana and Sissingué by the end of 2017, and with the prospect of developing a third mine at Yaouré within several years, Perseus has appointed Mr. Chris Woodall to the role of Chief Operating Officer ("COO").
Chris is a Australian mining professional who comes to Perseus equipped with a large amount of highly relevant operating experience needed to successfully perform the COO role for Perseus, having most recently held the positions of Senior Vice President Operations (Canada and US) for Goldcorp Inc. and immediately prior to that the role of Global Director Mining - Operations Support for Barrick Gold Corporation.
Reporting to the CEO, Chris will be based out of Perseus's corporate office in Perth but will necessarily spend a significant proportion of his time in West Africa overseeing the growth of Perseus's gold mining operations.
geodan
8 years ago
Perseus Mining Limited – Mid-Quarter Update
Perseus Mining Limited (ASX/TSX: PRU) (“Perseus”) is pleased to provide the following update on
progress towards the implementation of its corporate growth strategy designed to transform
Perseus within five years into a producer of more than 500,000 ounces of gold per year from three
operating mines in West Africa.
OPERATIONS
Edikan Gold Mine – Ghana (“Edikan”)
? The intensive work programme implemented earlier this year to improve operating
performance at Edikan, continues to generate the required results with materially improved
operating performance continuing during the September 2016 quarter (the “Quarter”);
? Gold production up to the 12th August 2016 is ahead of target with approximately 21,000
ounces of gold recovered Quarter-to-date. This level of production is consistent with guidance
for the December 2016 half year of 80-100,000 ounces of gold;
? A US$120 million contract for the mining of the Esuajah North (“ESN”) open pit has been
awarded to African Mining Services (“AMS”), a Ghanaian contract mining subsidiary of mining
services company Ausdrill Limited. AMS is currently contracted to mine both the Fetish and
Chirawewa open pits at Edikan. With construction of housing needed to accommodate former
residents of the mine take area proceeding on track and grade control drilling in ESN under
way, preparations for the start of full scale mining by AMS in ESN in early October 2016 are
well in hand.
DEVELOPMENT
Sissingué Gold Project – Côte d’Ivoire (“Sissingué”)
? Contracts related to approximately 50% of the scope of work for the Sissingué mine
development have been awarded to Lycopodium, the experienced and highly regarded
international engineering group. The balance of the Sissingué scope of works will be supervised
by Perseus’s in-house development team. Procurement for this portion of the works is also
well underway. First gold is forecast to be poured at Sissingué in the December 2017 quarter;
? Work is progressing towards obtaining final credit approval and documentation of a US$60
million project financing facility for Sissingué which, together with US$40 million of Perseus’s
cash, will fully fund the approximately US$100 million cost to complete development of
Sissingué.
Yaouré Gold Project – Côte d’Ivoire (“Yaouré”)
? A contract for 42,000 metres of diamond and reverse circulation (“RC”) infill drilling and 40,000
metres of rotary air blast (“RAB”) sterilisation drilling has been signed with drilling contractor
Geodrill Limited. By month end, four drill rigs are expected to be mobilised to the Yaouré site;
? All key Consultants are well advanced on Stage 1 of the definitive feasibility study (“DFS”)
which involves a comprehensive review of all existing data related to Yaouré in each discipline
and the selection of specific options for evaluation as part of the DFS. This stage of the DFS is
expected to be completed on schedule by the end of August 2016.
Page | 2
EXPLORATION
Baomahum Gold Project (Sierra Leone)
? Perseus has been advised by the Sierra Leone National Minerals Agency that the Minister for
Mines and Mineral Resources has cancelled Mineral Right ML 02/08 on which the Baomahun
gold deposit is located. This action has been taken following Perseus’s advice to the Minerals
Advisory Board that development of the Baomahun Gold Project as defined by Amara Mining
plc, which was acquired by Perseus in April 2016, is not economically feasible at current gold
prices and that further exploration success and a positive feasibility study would be required
before Perseus could consider committing to development.
full pr
Vegas Matt
9 years ago
Perseus Mining Limited (ASX/TSX: PRU) is pleased to announce a record profit after tax (“PAT”) of A$92.2 million, or 16.7 cents per share, for the 2015 Financial Year (“FY2015”). This PAT represents an increase of A$124.2m, or 288%, on the FY2014 result.
Perseus Mining achieves A$92.2 million profit for FY2015
West African focussed gold producer, Perseus Mining Limited (ASX/TSX: PRU) is pleased to announce a record profit after tax (“PAT”) of A$92.2 million, or 16.7 cents per share, for the 2015 Financial Year (“FY2015”). This PAT represents an increase of A$124.2m, or 288%, on the FY2014 result.
Highlights of the 2015 Financial Year results include:
26% increase in revenue
10% decrease in expenses
Foreign exchange (FX) gain of $52.4M
Cash balance of A$103.7M, or 19.7cps – A$66.8M (181%) more than FY2014
Combined value of cash and bullion of A$127.3M, or 24.2cps at the end of FY2015 – up A$78.6M or 61% on FY2014
Working capital of A$177.6M – an increase of A$108.3M, or 157%, on FY2014
No third party debt.
At an operational level, Perseus’s Edikan Gold Mine in Ghana performed strongly during FY2015, recording material performance improvements, including:
Gold production increased 17% to 212,000 ounces
All In Site Costs decreased 32% to US$877/oz
Average sale price of gold steady at US$1,324/oz
Managing Director Jeff Quartermaine Comments:
“Our team has worked very hard to improve the operating performance at our Edikan Gold Mine and this is reflected in the strong financial results published today. Favourable foreign exchange movements have certainly improved the result in A$ terms but significant cost savings and productivity gains underpin the performance as does a prudent approach to gold price risk management which has delivered an average gold price of US$1,324/oz in a falling gold market.
Our debt free working capital base of A$178M has been steadily built up during the course of the year and this has placed us in a strong position to deliver growth in total shareholder returns notwithstanding the challenging gold price environment in which we are currently operating.”
Click here for the 2015 financial results and accompanying presentation and Appendix 4E.
Perseus Mining Limited
Level 2, 437 Roberts Road
Subiaco, Western Australia 6008
ACN 106 808 986
ABN 27 106 808 986
Ph: +61 8 6144 1700
Fax: +61 8 6144 1799
Email: info@perseusmining.com
mail.launchpadcreative.com.au/t/ViewEmail/r/96D48DC0BA18B66D2540EF23F30FEDED/04597310272DD36ACE63909E3969C05F
Vegas Matt
9 years ago
Perseus Mining SA Article PMNXF
http://seekingalpha.com/article/3225226-perseus-mining-advancing-the-sissingue-project?auth_param=6ojk:1amqh3s:d409cce2fdcfb4f57387039e38c6a176&uprof=45
Summary
Perseus Mining's Q1 production was better than I anticipated, despite the lack of continuous power.
Meanwhile, Perseus has started the first 'construction' work at the new Sissingué project.
The Sissingue feasibility study indicates the project would be a cash cow, but I want to see it confirmed first before acting on it.
Introduction
A while ago, I wrote Perseus Mining (OTCPK:PMNXF) was a turnaround story and after several years wherein the company underperformed, it seemed to be on the right track to increase the production at its flagship Edikan gold project in Ghana, whilst reducing the operating expenses per ounce. I also doubted the Sissingué project was as good as it appeared to be, as I didn't fully trust the external consultant that completed the feasibility study. I will reflect on both issues in this article to check if Perseus is indeed on the right track.
The Q1 production results
Perseus produced almost 47,500 ounces of gold in the first quarter of this year which actually is a little bit more than I anticipated. As you might remember from an earlier update-article, the Ghanaian government imposed restrictions on the consumption of power for large mines, and I was expecting a larger impact. Fortunately Perseus was able to counter the lower amount of milled tonnes by a higher average grade and a lower strip ratio at the open pit.
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