Perseus shows interest in Newmont’s Akyem mine sale
Australian miner Perseus Mining will be interested in acquiring the Akyem mine in Ghana, Chairperson and CEO Jeff Quartermaine said last Friday.
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This follows Newmont’s announcement on Thursday of its intention to not only sell the Akyem mine but also five other mines across Australia, Canada and the US as it refocuses its portfolio on ten tier-one assets.
Quartermaine highlighted the company’s strategic positioning as a potential investor in the Akyem mine, noting it was broadly familiar with the asset.
“We will certainly investigate the opportunity,” he said in a conference call on Friday, responding to a question about whether Perseus was interested in the asset that Newmont now deemed non-core.
Quartermaine pointed out that Perseus had been operating in Ghana since its inception and had strong relationships in that country.
The company’s first mine was in Ghana.
Akyem mine pit
Since its first gold pour in late 2011, Edikan has delivered more than two million ounces for Perseus.
Production numbers
In the six months ended December 2023, Edikan produced 98,647 oz of gold and is forecast to produce between 191,000 oz and 201,000 oz in the full financial year to June 30, 2024.
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According to Newmont, Akyem produced 170, 000 oz at an all-in sustaining cost of $2 100/oz in 2023.
Perseus Mining has posted an 18 per cent year-on-year improvement in earnings before interest, taxes, depreciation and amortisation to $ 280 million, as well as a 21 per cent increase in profit after tax to $ 164 million for the six months ended December 31.
The company declared an interim dividend of A$0.0125 in the six months under review.
For reference, Perseus’ final dividend for the financial year ended June 30, 2023, amounted to A$0.0248.
Tangible assets
Moreover, Perseus generated an operating cash flow of $ 211 million in the reporting period, while increasing its net tangible assets to $ 1.3 billion, or $0.94 apiece, which is a 33 per cent increase on net tangible assets per ordinary share of $0.71 apiece in the prior corresponding period.
Interim production amounted to 261 577 oz at an all-in site cost of $979/oz, with the Yaouré mine contributing 134 379 oz, the Sissingué mine contributing 28 551 oz and the Edikan mine contributing 98 647 oz.
The Edikan mine is based in Ghana, while the other two are located in Côte d’Ivoire.
In the prior comparable six months, Perseus produced 261 921 oz, marking a four per cent decrease in production in the reporting period.
Encouragingly, the average gold sales price was 13 per cent higher year-on-year at $1 951/oz in the six months under review.
Mr Jeff Quartermaine says gold production and all-in site costs achieved market guidance comfortably, with all-in site costs exceeding guidance.
He added that the company had continued to cement its position as a profitable mid-tier gold producer that consistently delivered on targets.
Perseus finished the half-year with net cash and bullion on hand of $ 642 million, not including a $300 million undrawn debt facility.
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Perseus remains on track to produce between 491, 000 oz and 517, 000 oz of gold for the full year ending on June 30 this year. — Mining Weekly