PERSEUS Mining reported A$126.9m in interim taxed profits today taking net cash to A$222.7m (US$161.8m) as it continued to increase gold output which is now at the firm’s targeted 500,000 ounce a year run-rate.
“With three gold mines in operation, we are now producing gold at our targeted rate of approximately 500,000 ounces of gold per year,” said Jeff Quartermaine, MD of Perseus in a company announcement. The company would “at least” maintain this level “well into the future”, he added.
An interim dividend of 81 Australian cents per share was declared. Perseus announced a maiden dividend of 1.5c/share at the announcement of its 2021 financial year in August.
Gold production for the six months ended December totalled 241,164 oz which was produced at an all-in sustaining cost (AISC) of $949/oz. This compares to production of 137,386 oz in the corresponding period of the previous financial year.
Perseus, which mines the Edikan mine in Ghana along with the Sissingue and Yaoure mines in Cote d’Ivoire, is shooting for year end production of between 471,164 to 506,164 oz at an AISC of $932 to $1,020/oz.
The company will benefit from the rising dollar gold price as speculators flock to the metal as tensions rise between Russia and Ukraine.
Gold – often a guage of geopolitical stress – is fluctuating around $1,900/oz after almost hitting a 13-month high on Tuesday, said Bloomberg News.
“The likelihood of a regional war seems high and that will likely keep inflationary pressures elevated for much of the year,” Edward Moya, a senior market analyst at Oanda Corporation told the newswire.
“Bullion seems like it is taking a little break right now, but investors will soon be saying ‘I love gold,’ as geopolitical and growth concerns will drive safe-haven demand,” he said.
