West African gold miner Perseus Mining’s recent investment in 9.9% of Aurum Resources for A$23.7m could have potential synergies in future, Perseus MD and CEO Craig Jones said.
He said the decision to invest was a strategic one: some of Aurum’s northern tenements at Boundiali are close to where Perseus is mining at Bagoé, a satellite operation to the Sissingué Gold Complex in Côte d’Ivoire. “We think they have done a great job on the exploration and we’ll see where that takes us,” Jones said.
He was answering questions during a conference call to discuss the group’s March quarter performance. All the group’s operations – Yaouré and Sissingué in Côte d’Ivoire, and Edikan in Ghana – contributed to the 21% growth in gold production to 107,144oz in the March quarter. Jones said the group was on track to produce within previous guidance of 400,000-440,000oz of gold for the full year. Perseus realised an average gold price of $4,143/oz in this period, giving it a cash margin of $2,395/oz.
At the end of March, Perseus held A$817m in net cash and bullion, and it has subsequently received the A$260m in cash due for the sale of its 70% stake in the Meyas Sands project in Sudan. Asked whether the group would consider returning this cash to shareholders in the form of a special dividend, Jones said various options for the cash would be considered at the end of the year when decisions on dividends are being made.
The company’s biggest project under development the A$523m Nyanzaga Gold Project in Tanzania, where first gold is expected in January 2027. At this stage, funds spent and committed comprise 66% of the budget, so Jones said they did not expect major cost overruns.
