JUNE 2023 QUARTER REPORT Perseus exceeds gold production and cost guidance for FY23 and H2 FY23; Cash and bullion increased to US$522M
26 JULY 2023
NEWS RELEASE
JUNE 2023 QUARTER REPORT
Perseus exceeds gold production and cost guidance for FY23 and H2 FY23; Cash and bullion increased to US$522M
PERTH, Western Australia/ July 26, 2023/Perseus Mining Limited (“Perseus” or the “Company”) (TSX & ASX: PRU) reports on its activities for the three months’ period ended June 30, 2023 (the “Quarter”).
- Key Operating highlights for the June 2023 quarter, the June 2023 Half Year and the full 2023 Financial Year include:
| PERFORMANCE | MARCH 2023 QUARTER | JUNE 2023 QUARTER | JUNE 2023 HALF YEAR | 2023 FINANCIAL YEAR | |
| UNIT | |||||
| INDICATOR | |||||
| Gold recovered Ounces 130,275 | 136,634 | 266,909 535,281 | |||
| Gold poured Ounces 130,512 | 137,586 | 268,098 538,642 | |||
| Production Cost US$/ounce 831 | 811 | 820 820 | |||
| All-In Site Cost (AISC) US$/ounce 971 | 1,007 | 989 959 | |||
| Gold sales Ounces 135,111 | 140,533 | 275,644 537,564 | |||
| Average sales price US$/ounce 1,821 | 1,933 | 1,878 1,803 | |||
| Cash margin US$/ounce 850 | 926 | 889 844 | |||
| Notional Cashflow US$ million 111 | 127 | 238 452 |
- Quarterly gold production of 136,634 ounces at AISC of US$1,007 per ounce and cash margin of US$926 per
ounce.
- Gold production and AISC significantly outperformed market production and cost guidance for June 2023 Half Year and 2023 Financial Year.
- Quarterly gold sales of 140,533 ounces, up 4% (+5,422 ounces) from the March 2023 quarter.
- Average sale price of gold was US$1,933 per ounce, up 6% (+US$112 per ounce) from the March 2023 quarter.
- Average cash margin of US$926 per ounce of gold sold up 9% (+US$76 per ounce) from the March 2023 quarter.
- Notional cashflow of US$127 million during the quarter, up 14% (+US$16 million) from the March 2023 quarter.
- Group rolling 12-month TRIFR remained stable at 1.20.
- Strong quarterly cashflows further strengthened Perseus’s financial position with available cash and bullion of US$522 million with zero debt.
- Net cash and bullion balance increased US$51 million from the March 2023 quarter.
- Organic growth activities including Mineral Resource drill outs and feasibility studies at Yaouré’s CMA Underground Project progressed on schedule. Results due in the September 2023 quarter.
- Perseus’s total economic contribution to its host countries of Ghana, Côte d’Ivoire and Sudan was ~US$158 million (approximately 58% of revenue) during the quarter.
| PERSEUS MINING LIMITED | |
|---|---|
| Level 2, 437 Roberts Road, Subiaco WA 6008 | |
| ABN: 27 106 808 986 | 1 |
- Pre-development activities at Meyas Sand Gold Project (MSGP) in Sudan suspended due to security concerns, with FID originally planned for the December 2023 Half Year now deferred.
OPERATIONS
PRODUCTION, COSTS AND NOTIONAL CASHFLOW
Perseus’s three operating gold mines, Yaouré and Sissingué in Côte d’Ivoire, and Edikan in Ghana combined to produce 136,634 ounces of gold in the June 2023 quarter. The weighted average production cost across all three operations was US$811 per ounce, while the weighted average AISC incurred during the quarter was US$1,007 per ounce of gold.
In the June 2023 quarter, combined gold sales totalled 140,533 ounces. The weighted average gold price realised was US$1,933 per ounce, US$112 per ounce more than the March 2023 quarter price of US$1,821 per ounce.
Perseus’s average cash margin for the June 2023 quarter was US$926 per ounce, 9% better than the cash margin achieved during the March 2023 quarter. Notional operating cashflow from operations was US$127 million, US$16 million more than the March 2023 quarter, driven by the improved gold price achieved and increased production offset slightly by higher AISC.
These strong results summarised in Tables 1, 2 and 3 below, confirm Perseus’s position as one of the world’s higher performing mid-tier gold producers in the financial year ending 30 June 2023.
Table 1: Gold Production Summary by Mine
| TOTAL GOLD RECOVERED (OUNCES) | TOTAL GOLD POURED (OUNCES) | |||||||
|---|---|---|---|---|---|---|---|---|
| MINE | MARCH 2023 | JUNE 2023 | JUNE 2023 | 2023 FINANCIAL | MARCH 2023 | JUNE 2023 | JUNE 2023 | 2023 FINANCIAL |
| QUARTER | QUARTER | HALF YEAR | YEAR | QUARTER | QUARTER | HALF YEAR | YEAR | |
| Yaouré 64,753 Edikan 53,720 Sissingué 11,803 | 72,367 | 137,120 | 273,941 | 64,512 | 72,117 | 136,629 | 274,971 | |
| 50,232 | 103,952 | 209,929 | 54,096 | 51,939 | 106,035 | 212,992 | ||
| 14,035 | 25,838 | 51,411 | 11,904 | 13,530 | 25,434 | 50,679 | ||
| Group | 130,275 | 136,634 | 266,909 | 535,281 | 130,512 | 137,586 | 268,098 | 538,642 |
Table 2: Gold Sales by Mine
| TOTAL GOLD SOLD (OUNCES) | REALISED GOLD PRICE (US$ PER OUNCE) | |||||||
|---|---|---|---|---|---|---|---|---|
| MINE | MARCH 2023 | JUNE 2023 | JUNE 2023 | 2023 FINANCIAL | MARCH 2023 | JUNE 2023 | JUNE 2023 | 2023 FINANCIAL |
| QUARTER | QUARTER | HALF YEAR | YEAR | QUARTER | QUARTER | HALF YEAR | YEAR | |
| Yaouré 67,578 Edikan 54,705 Sissingué 12,828 | 76,720 | 144,298 | 279,471 | 1,800 | 1,930 | 1,869 | 1,800 | |
| 51,925 | 106,630 | 208,998 | 1,834 | 1,924 | 1,878 | 1,787 | ||
| 11,888 | 24,716 | 49,095 | 1,877 | 1,985 | 1,929 | 1,888 | ||
| Group | 135,111 | 140,533 | 275,644 | 537,564 | 1,821 | 1,933 | 1,878 | 1,803 |
Table 3: All-In Site Costs (AISC) and Notional Cash Flow by Mine
| ALL-IN SITE COST (US$/OUNCE) | NOTIONAL CASHFLOW FROM OPERATIONS (US$ MILLION) | |||||||
|---|---|---|---|---|---|---|---|---|
| MINE | MARCH 2023 | JUNE 2023 | JUNE 2023 | 2023 FINANCIAL | MARCH 2023 | JUNE 2023 | JUNE 2023 | 2023 FINANCIAL |
| QUARTER | QUARTER | HALF YEAR | YEAR | QUARTER | QUARTER | HALF YEAR | YEAR | |
| Yaouré 803 Edikan 1,067 Sissingué 1,458 | 771 | 786 | 755 | 65 | 84 | 149 | 286 | |
| 1,123 | 1,094 | 1,076 | 41 | 40 | 81 | 149 | ||
| 1,805 | 1,647 | 1569 | 5 | 2 | 7 | 16 | ||
| Group | 971 | 1,007 | 989 | 959 | 111 | 127 | 238 | 452 |
YAOURÉ GOLD MINE, CÔTE D’IVOIRE
Refer to Table 4 below for details of operating and financial parameters recorded at the Yaouré gold mine during the June 2023 quarter and relevant prior periods.
During the quarter, Yaouré produced 72,367 ounces of gold at a production cost of US$603 per ounce and an AISC of US$771 per ounce. The weighted average sales price of the 76,720 ounces of gold sold during the quarter was US$1,930 per ounce, giving rise to a cash margin of US$1,159 per ounce. Notional operating cashflow generated during the quarter by Yaouré was US$84 million, or US$19 million more than in the March 2023 quarter.
This performance resulted in Yaouré producing 137,120 ounces of gold at an AISC of US$786 per ounce for the June 2023 Half Year and in the process, outperforming market guidance for the period of 117,500 to 130,000 ounces of gold production at an AISC of US$900 to US$1,000 per ounce.
The strong operating performance at Yaouré reflected an improvement of 12% in head grade of processed ore (2.54 g/t gold compared to 2.26 g/t gold), but all other operating KPIs were very similar to those recorded in the March 2023 quarter, including throughput rates (485 tph compared to 491 tph), mill runtime (90% compared to 91%), and gold recovery rates (identical at 92.4%).
Table 4: Yaouré Quarterly Performance
| DECEMBER 2022 | MARCH 2023 | JUNE 2023 | JUNE 2023 | 2023 FINANCIAL | ||
| PARAMETER | UNIT | |||||
| HALF YEAR | QUARTER | QUARTER | HALF YEAR | YEAR | ||
| Gold Production & Sales | ||||||
| Total material mined Tonnes 16,360,821 8,716,713 | 8,337,953 | 17,054,666 33,415,487 | ||||
| Total ore mined Tonnes 2,607,389 1,280,134 | 1,403,455 | 2,683,589 5,290,978 | ||||
| Average ore grade g/t gold 1.86 1.92 | 1.72 | 1.82 1.84 | ||||
| Strip ratio t:t 5.3 5.8 | 4.9 | 5.4 5.3 | ||||
| Ore milled Tonnes 1,982,184 962,200 | 955,355 | 1,917,555 3,899,739 | ||||
| Milled head grade g/t gold 2.30 2.26 | 2.54 | 2.40 2.35 | ||||
| Gold recovery % 93.2 92.4 | 92.4 | 92.4 92.8 | ||||
| Gold produced ounces 136,821 64,753 | 72,367 | 137,120 273,941 | ||||
| Gold sales1 ounces 135,174 67,578 | 76,720 | 144,298 279,471 | ||||
| Average sales price US$/ounce 1,727 1,800 | 1,930 | 1,869 1,800 | ||||
| Unit Production Costs | ||||||
| Mining cost US$/t mined 2.92 2.88 | 2.93 | 2.91 2.91 | ||||
| Processing cost US$/t milled 12.09 12.67 | 12.59 | 12.63 12.35 | ||||
| G & A cost US$M/month 2.19 2.18 | 2.39 | 2.28 2.23 | ||||
| All-In Site Cost | ||||||
| Production cost US$/ounce 620 677 | 603 | 638 629 | ||||
| Royalties US$/ounce 86 104 | 102 | 103 94 | ||||
| Sub-total US$/ounce 706 781 | 705 | 741 724 | ||||
| Sustaining capital US$/ounce 18 22 | 66 | 45 32 | ||||
| Total All-In Site Cost2 US$/ounce 724 803 | 771 | 786 755 | ||||
| Notional Cashflow from Operations | ||||||
| Cash Margin US$/ounce 1,003 998 | 1,159 | 1,083 1,045 | ||||
| Notional Cash Flow US$M 137 65 | 84 | 149 286 |
Notes:
1. Gold sales are recognised in Perseus’s accounts when gold is delivered to the customer from Perseus’s metal account
2. Included in the AISC for the June 2023 quarter is US$4 million of costs relating to excess waste stripping. When reporting cost of sales, in line with accepted practice under IFRS, this cost will be capitalised and the costs amortised over the remainder of the relevant pit life.
MINERAL RESOURCE TO MILL RECONCILIATION
The reconciliation of processed ore tonnes, grade and contained gold relative to the Yaouré Mineral Resource block model are shown in Table 5. During the June 2023 quarter, Perseus processed 11% more ore tonnes at 7% lower grade for an overall increase of 3% in ounces compared to the Mineral Resource model. In the previous 6 and 12 months, Yaouré has produced 4% more metal than the Mineral Resource model predicted. The performance of the Yaouré Mineral Resource model to date is considered satisfactory.
Table 5: Yaouré Block Model to Mill Reconciliation
| BLOCK MODEL TO MILL CORRELATION FACTOR | |||
|---|---|---|---|
| PARAMETER | |||
| 3 MONTHS | 6 MONTHS | 1 YEAR | |
| 1.11 | |||
| 0.93 | |||
| 1.03 |
EDIKAN GOLD MINE, GHANA
Table 6 below summarises the key operating and financial parameters recorded at Edikan during the June 2023 quarter and relevant prior periods.
Edikan produced 50,232 ounces of gold at a production cost of US$903 per ounce and an AISC of US$1,123 per ounce in the June quarter, slightly down from last quarter’s performance when it produced 53,720 ounces at an AISC of $1,067 per ounce. Gold sales of 51,925 ounces were 5% less than the prior quarter, at a weighted average realised gold price of US$1,924 per ounce, generating an average cash margin of US$801 per ounce, which was 4% more than in the prior quarter. However, due to the lower production, notional cashflow of US$40 million was US$1 million lower than in the prior period.
Edikan continued to perform consistently well in the June 2023 quarter, matching internal expectations. This has resulted in Edikan exceeding June 2023 Half Year production guidance of 87,500 to 100,000 ounces (103,952 ounces) and achieving AISC below the bottom end of the cost guidance range of US$1,100 to US$1,200 per ounce (US$1,094 per ounce) for the period.
Quarter on quarter, production KPIs were relatively steady with processed ore head grade slightly decreased (1.08 g/t gold compared to 1.09 g/t gold), gold recovery rates marginally increased (92.9% compared to 91.8%), and steady mill runtime (93% compared to 94%). Throughput rates were down slightly on the prior quarter (768 tph compared to 824 tph) but remained within acceptable tolerance ranges.
Table 6: Edikan Quarterly Performance
| DECEMBER 2022 | MARCH 2023 | JUNE 2023 | JUNE 2023 | 2023 FINANCIAL | ||
| PARAMETER | UNIT | |||||
| HALF YEAR | QUARTER | QUARTER | HALF YEAR | YEAR | ||
| Gold Production & Sales | ||||||
| Total material mined Tonnes 14,018,167 6,693,065 | 5,247,068 | 11,940,133 25,958,300 | ||||
| Total ore mined Tonnes 3,347,709 1,888,576 | 1,696,970 | 3,585,546 6,933,255 | ||||
| Average ore grade g/t gold 1.05 1.07 | 1.03 | 1.05 1.05 | ||||
| Strip ratio t:t 3.19 2.54 | 2.09 | 2.33 2.74 | ||||
| Ore milled Tonnes 3,527,865 1,671,960 | 1,566,231 | 3,238,191 6,766,056 | ||||
| Milled head grade g/t gold 1.03 1.09 | 1.08 | 1.09 1.06 | ||||
| Gold recovery % 90.5 91.8 | 92.9% | 92.3% 91.4% | ||||
| Gold produced ounces 105,977 53,720 | 50,232 | 103,952 209,929 | ||||
| Gold sales1 ounces 102,368 54,705 | 51,925 | 106,630 208,998 | ||||
| Average sales price US$/ounce 1,692 1,834 | 1,924 | 1,878 1,787 | ||||
| Unit Production Costs | ||||||
| Mining cost US$/t mined 4.14 4.20 | 4.69 | 4.42 4.27 | ||||
| Processing cost US$/t milled 9.15 9.87 | 10.39 | 10.12 9.62 | ||||
| G & A cost US$M/month 1.55 1.51 | 1.49 | 1.50 1.53 | ||||
| All-In Site Cost2 | ||||||
| Production cost US$/ounce 940 916 | 903 | 910 925 | ||||
| Royalties US$/ounce 107 127 | 149 | 137 122 | ||||
| Sub-total US$/ounce 1,047 1,043 | 1,052 | 1,047 1,047 | ||||
| Sustaining capital US$/ounce 12 24 | 71 | 47 29 | ||||
| Total All-In Site Cost2 US$/ounce 1,059 1,067 | 1,123 | 1,094 1,076 | ||||
| Notional Cashflow from Operations1 | ||||||
| Cash Margin US$/ounce 633 767 | 801 | 784 711 | ||||
| Notional Cash Flow US$M 67 41 | 40 | 81 149 |
Notes:
1. Gold sales are recognised in Perseus’s accounts when gold is delivered to the customer from Perseus’s metal account.
2. Included in the AISC for the June quarter is US$2 million of costs relating to excess waste stripping. When reporting cost of sales, in line with accepted practice under IFRS, this cost will be capitalised and the costs amortised over the remainder of the relevant pit life.
MINERAL RESOURCE TO MILL RECONCILIATION
Reconciliation of processed ore tonnes, grade and contained ounces relative to the Edikan Mineral Resource block model is in Table 7 below. During the June 2023 quarter, grade control predicted additional tonnes (+7%), higher grade (+7%) and more ounces (+14%) when compared to the Mineral Resource Estimate (MRE). Over the past six months, Edikan has also recorded more contained metal than predicted by the MRE. In addition, over a 12-month period, contained gold was also more than that predicted by the MRE (8%). Therefore, Perseus regards the overall outperformance of Edikan as being within normal industry standards.
Table 7: Edikan Block Model to Mill Reconciliation
| BLOCK MODEL TO MILL CORRELATION FACTOR | |||
|---|---|---|---|
| PARAMETER | |||
| 3 MONTHS | 6 MONTHS | 1 YEAR | |
| Tonnes of Ore | 1.07 | 1.06 1.05 | |
| Head Grade | 1.07 | 1.04 1.03 | |
| Contained Gold | 1.14 | 1.11 1.08 |
SISSINGUÉ GOLD MINE, CÔTE D’IVOIRE
Table 8 below summarises the key operating and financial parameters recorded at the Sissingué gold mine during the June 2023 quarter and relevant prior periods.
Table 8: Sissingué Quarterly Performance
| DECEMBER 2022 | MARCH 2023 | JUNE 2023 | JUNE 2023 | 2023 FINANCIAL | ||
| PARAMETER | UNIT | |||||
| HALF YEAR | QUARTER | QUARTER | HALF YEAR | YEAR | ||
| Gold Production & Sales | ||||||
| Total material mined Tonnes 3,678,661 2,317,850 | 1,988,872 | 4,306,722 | 7,985,383 | |||
| Total ore mined Tonnes 516,841 354,784 | 436,279 | 791,063 | 1,307,904 | |||
| Average ore grade g/t gold 0.73 0.88 | 1.15 | 1.03 | 0.91 | |||
| Strip ratio t:t 6.1 5.53 | 3.56 | 4.44 | 5.11 | |||
| Ore milled Tonnes 799,722 468,679 | 394,727 | 863,406 | 1,663,128 | |||
| Milled head grade g/t gold 1.09 0.85 | 1.19 | 1.01 | 1.05 | |||
| Gold recovery % 91.5 91.6 | 93.0% | 92.4% | 91.9% | |||
| Gold produced ounces 25,573 11,803 | 14,035 | 25,838 | 51,411 | |||
| Gold sales1 ounces 24,379 12,828 | 11,888 | 24,716 | 49,095 | |||
| Average sales price US$/ounce 1,847 1,877 | 1,985 | 1,929 | 1,888 | |||
| Unit Production Costs | ||||||
| Mining cost US$/t mined 3.85 3.71 | 4.80 | 4.20 | 4.05 | |||
| Processing cost US$/t milled 16.58 12.69 | 17.86 | 15.04 | 15.78 | |||
| G & A cost US$M/month 1.35 1.46 | 1.76 | 1.61 | 1.48 | |||
| All-In Site Cost 2,3 | ||||||
| Production cost US$/ounce 1,389 1,276 | 1,558 | 1,431 | 1,411 | |||
| Royalties US$/ounce 95 121 | 86 | 101 | 98 | |||
| Sub-total US$/ounce 1,484 1,397 | 1,644 | 1,532 | 1,509 | |||
| Sustaining capital US$/ounce 6 61 | 161 | 116 | 60 | |||
| Total All-In Site Cost US$/ounce 1,490 1,458 | 1,805 | 1,647 | 1,569 | |||
| Notional Cashflow from Operations 3 | ||||||
| Cash Margin US$/ounce 357 419 | 180 | 281 | 319 | |||
| Notional Cash Flow US$M 9 5 | 2 | 7 | 16 |
Notes:
1. Gold sales are recognised in Perseus’s accounts when gold is delivered to the customer from Perseus’s metal account.
2. Included in the AISC for the June quarter is US$0.4 million of costs relating to excess waste stripping. When reporting cost of sales, in line with accepted practice under IFRS, this cost will be capitalised, and the costs amortised over the remainder of the relevant pit life.
3. Commercial production at Fimbiasso was declared 1 April 2023. A total of US$4.2 million of pre-commercial production operating costs have been excluded from All-In-Site-Costs. Furthermore, the 269oz that were produced from Fimbiasso prior to the declaration of commercial production have been deducted from the oz produced figures in the calculation of All-In-Site-Costs, cash margin, and notional cash flows.
Sissingué Complex produced total of 14,035 ounces of gold during the quarter, at a production cost of US$1,558 per ounce and an AISC of US$1,805 per ounce. Gold production was 19% higher than the previous quarter, however AISCs were higher due to the cessation of capitalisation of development and establishment costs with the commencement of commercial production at Fimbiasso during the period.
The Sissingué operation now involves mining and processing of ore from low-grade stockpiles as well as from the remnants of West Arm, Binkadi and Bagoé pits on the Sissingué Mining Lease along with mining, trucking and processing ore from the satellite Fimbiasso East and West pits on the Fimbiasso Mining Lease.
During the quarter, the performance of Perseus’s ore haulage contractor improved after a slow start to operations, enabling a progressively higher proportion of higher-grade ore from the satellite pits at Fimbiasso East and West, to be processed. By the end of the quarter, daily haulage targets were being consistently exceeded.
Overall operating performance at the Sissingué Complex was mixed during the quarter. Head grade (1.19g/t gold) improved by 40% relative to the last quarter, while runtime (-10%), and throughput rate (-7%) both lagged the prior quarter and the recovery rate (93.0%) was better than the prior quarter.
The AISC of US$1,805 per ounce was higher than in the previous quarter due largely to Fimbiasso pre-production costs that were being capitalised in prior quarters being expensed in June 2023 quarter, including costs associated with establishing a haulage operation to transport Fimbiasso ore back to the central processing facility. The weighted average sales price of the 11,888 ounces of gold sold during the quarter was US$1,985 per ounce, giving rise to an average cash margin of US$180 per ounce. Notional cashflow generated by the mine during the quarter totalled US$2 million.
BAGOÉ MINING LEASE
Perseus has lodged all documentation required for assessment of its application for an Exploitation Permit for the Bagoé Project with the Ivorian Department of Mines, Petroleum and Energy and is currently being assessed. Community consultations with the three regions likely to be impacted by the Bagoé mining operation are underway and progressing well, with the consultation process successfully closed for the Boundiali region. The Exploitation Permit should be granted on completion of these consultations and thereafter a Mining Convention covering the operation will be negotiated. Construction of infrastructure required to support a mining operation at Bagoé will commence as soon as possible following receipt of the Bagoé Mining Lease.
MINERAL RESOURCE TO MILL RECONCILIATION
The reconciliation of processed ore tonnes, grade and contained ounces relative to the Sissingué Complex Mineral Resource block models is in Table 9 below. During the June Quarter, grade control has predicted additional tonnes (+5%) at higher grade (+12%) resulting in an increase in overall ounces (+17%) when compared to the Mineral Resource Estimate (MRE). Over the past six- and 12-month periods, Sissingué has processed overall more metal than the Mineral Resource model estimation. The reconciliation between mineral resources and the mill at the Sissingué complex is considered satisfactory, and improvement work continues to align the resource model more closely with the over-delivery of tonnes observed in the grade control.
Table 9: Sissingué complex Block Model to Mill Reconciliation
| BLOCK MODEL TO MILL CORRELATION FACTOR | |||
|---|---|---|---|
| PARAMETER | |||
| 3 MONTHS | 6 MONTHS | 1 YEAR | |
| Tonnes of Ore | 1.05 | 1.08 1.15 | |
| Head Grade | 1.12 | 1.01 0.98 | |
| Contained Gold | 1.17 | 1.10 1.12 |
GROUP GOLD PRODUCTION AND COST MARKET GUIDANCE
Group gold production and AISCs for the December 2023 Half Year and the 2023 Calendar Year are as shown below in
Table 10.
Table 10: Production and Cost Guidance
| JUNE 2023 HALF YEAR | DECEMBER 2023 HALF YEAR | 2023 CALENDAR YEAR | ||
| PARAMETER | UNITS | |||
| (ACTUAL) | (FORECAST) | (FORECAST) | ||
| Yaouré Gold Mine |
Production Ounces 137,120 125,000 to 140,000 262,100 to 277,120 All-in Site Cost USD per ounce 786 850 to 950 818 to 864
Sissingué Gold Mine
Production Ounces 25,838 27,500 to 32,500 53,338 to 58,338 All-in Site Cost USD per ounce 1,647 1,700 to 1,900 1,677 to 1,777
Edikan Gold Mine
Production Ounces 103,952 90,000 to 100,000 193,952 to 203,952 All-in Site Cost USD per ounce 1,094 1,200 to 1,300 1,146 to 1,190
PERSEUS GROUP
Production Ounces 266,909 242,500 to 272,500 509,409 to 539,500 All-in Site Cost USD per ounce 989 1,080 to 1,190 1,035 to 1,085
SUSTAINABILITY
SUSTAINABILITY GOVERNANCE
During the quarter, Perseus continued to strengthen its sustainability governance through:
- Continued work on strengthening Group safety performance with the roll-out of Phase 2 of the “Safely Home Every Day” (SHED) program across our sites. This included one-on-one coaching and Train-the-Trainers sessions, as well as Supervisors skills development sessions and training of Safety Champions.
- Yaouré Community Trust Fund management committee established by the Ministry of Mines, Petroleum and Energy. The local development plan is being finalised in consultation with the 15 local communities with completion expected in July.
- First public hearing as part of the Bagoé Environment Permit (EP) application process successfully completed at Boundiali, with the process underway in Mbengué and Korhogo regions.
SUSTAINABILITY PERFORMANCE
This quarter, Perseus continued its strong sustainability performance relative to objectives and targets, as shown below in Table 11 and summarised as:
- Safety:
- Safety performance across the portfolio remained stable, with the Group Total Recordable Injury Frequency Rates (TRIFR) decreasing slightly from 1.29 at the end of March 2023 to 1.20 at the end of June 2023, which remains higher than the FY23 threshold of 1.10 and target of 0.8. There were two recordable injuries for the June quarter across the Group.
- Lost Time Injury Frequency (LTIFR) across the Group remains stable at 0.26 for the June quarter from 0.25 in March.
- Social:
- Total economic contribution to Perseus’s host operating countries Ghana and Côte d’Ivoire for the quarter was ~US$158 million (up US$2m from last quarter and approximately 58% of revenue), which included 77% of the Company’s procurement on Purchase Order Value basis paid to local suppliers, and ~US$1.3 million in social investment (includes accrual for Yaouré).
- Local and national employment decreased slightly to 94% for the reporting quarter. Across the Group, the proportion of female employees declined slightly to 11.4% for the June 2023 quarter (from 12.4% in the March quarter).
- There were no significant community events (Category 3 or above) reported during the June quarter.
- Environment:
- Total Scope 1 and 2 Greenhouse Gas emissions intensity per ounce of gold produced decreased to 0.48 tCO2-e/oz for the quarter ended June 2023from 0.53 tCO2-e/oz for the quarter ended March 2023.
- Zero significant (Consequence 3) environmental or tailings dam integrity issues occurred during the period.
In achieving the above, the following sustainability challenges were encountered by Perseus during the quarter:
- Safety remains a key priority for the Company, with emphasis placed on hand safety following two injuries sustained during the quarter and further roll-out of the SHED program.
- Illegal mining activities on some of Perseus’s mining and exploration licence areas continue to present challenges for the Company. Perseus continues to work closely with relevant government authorities to manage these activities that have proven to negatively impact both the environmental and social fabric of local communities.
Table 11: Sustainability Quarterly Performance
| PERFORMANCE | SUB-AREA | METRIC | UNIT | SEPTEMBER 2022 | DECEMBER 2022 | MARCH 2023 | JUNE 2023 |
| DRIVER | QUARTER | QUARTER | QUARTER | QUARTER |
Governance Compliance Material legal non-compliance Number 110000 0 0 0
Social Worker Health, Workplace fatalities Number 0 0 0 0 Safety and Wellbeing6 Total Recordable Injury Frequency (TRIFR) Total Recordable Edikan – 1.02 Edikan – 1.42 Edikan – 1.02 Edikan – 1.03 Injuries per million Sissingué - 0.54 Sissingué – 1.05 Sissingué – 0.96 Sissingué – 0.89 hours worked, rolling Yaouré – 1.93 Yaouré – 1.27 Yaouré – 1.231 Yaouré – 1.21 12 months Exploration - Exploration – 1.991 Sudan – 5.631 Sudan – 4.43 0.631 Group – 1.43 Exploration – 2.241 Exploration – 2.28 Group – 1.19 Group – 1.291 Group – 1.20 Lost Time Injury Frequency (LTIFR) Lost Time Injuries Edikan - 0.41 Edikan - 0.41 Edikan - 0.20 Edikan - 0.21 (LTIFR) per million Sissingué - 0.00 Sissingué - 0.00 Sissingué - 0.00 Sissingué - 0.00 hours worked, rolling Yaouré - 0.00 Yaouré - 0.00 Yaouré - 0.31 Yaouré - 0.61 12 months Exploration - 0.00 Exploration - 0.00 Sudan – 0.00 Sudan – 0.00 Group - 0.26 Group - 0.25 Exploration - 0.00 Exploration - 0.00
Group - 0.25 Group - 0.26
| COVID-19 Cases | Number | 5 | 1 | 3 | 0 | |
| Community | Number of significant2community events | Number | 0 | 2 | 0 | 0 |
| Community investment | US$ | US$925,3673 | US$1,369,6793 | US$1,114,3883 US$1,335,0643 | ||
| Economic Benefit | Proportion local and national employment | % of total employees | 96% | 96% | 96% | 94% |
| Proportion local and national procurement | % of total | 78% | 87% | 88% | 77% |
procurement
| Gender Diversity | Board gender diversity | % | 33% | 33% | 33% | 33% |
| Executive gender diversity | % | 14% | 14% | 13% | 16% | |
| Proportion of women employees | % | 14.0%4 | 12.0%4 | 12.4%4 | 11.4%4 | |
| Responsible Environment | Number of significant2environmental events | Number | 0 | 0 | 0 | 0 |
Operations
Tailings Number of significant2 tailings dam integrity Number 0 0 0 0 failures Water stewardship Water used per ounce of gold produced5 M3/oz 5.71 6.991 9.09 4.16
Greenhouse Gas Scope 1 and 2 Greenhouse Gas Emissions per Tonnes of CO2-e/oz 0.47 0.541 0.53 0.48 Emissions ounce of gold produced Notes:
1. Corrected/re-stated figure from the December 2022 and March 2023 Quarter Report.
2. A significant event is one with an actual severity rating of four and above, based on Perseus's internal severity rating scale (tiered from one to five by increasing severity) as defined in our Risk Management Framework.
3. Includes accruals for the CDLM at Yaouré.
4. Permanent employees only.
5. Water intensity calculated using water consumption.
6. We have initiated the data collection process for Sudan in FY23. The Group number currently does not consider Sudan. Perseus will be looking to integrate Sudan and Corporate information into the Group number in FY24.
ORGANIC BUSINESS GROWTH
PROJECT DEVELOPMENT
MEYAS SAND (FORMERLY BLOCK 14) GOLD PROJECT, SUDAN
Meyas Sand Gold Project (MSGP) is situated in the far north of Sudan, approximately 75km south of the border with Egypt, and is fully permitted by the Sudanese Government with a Mining Lease, Royalty agreement and a water permit formally granted incorporating attractive fiscal terms, and clearly delineated rights and obligations of key stakeholders.
Early in the quarter, Perseus continued strong progress towards preparing for a possible Final Investment Decision (FID) on the MSGP in the second half of 2023. However, in late April 2023, following the outbreak of armed conflict in Sudan, largely in and around Khartoum, between the Sudanese Armed Forces (SAF) and the Rapid Support Force (RSF), an influential militia group, Perseus withdrew most of its employees from the MSGP site pending a resolution of the conflict, as safety of its staff is the number one priority for the Company.
Although hostilities between the combatants continue in certain parts of Sudan, the area in which MSGP is located has not been the scene of conflict, and there have been no reported incidents involving the combatants in an area of approximately 250,000km2 around the site.
Notwithstanding the above, the Company’s in-country security contractor advised they could no longer meet their obligations under the contract and left the site in May. This unfortunately led to some vandalism of infrastructure and equipment by illegal miners who trespassed on the Mining Lease in the absence of security. The MSGP site has now been secured by a security team led by Perseus’s in-house security personnel and a government security force led by the Sudanese Mining Insurance Police, a body that operates under the control of the Ministry of Minerals, as well as representatives from our host communities.
Perseus considers that the security situation in-country is currently not conducive to large-scale investment and as a result, the pending FID on the development of the MSGP has been deferred until confidence in the overall safety and security of the country is restored. At this stage, Perseus has no clear line of sight to when this might occur.
It is intended that once the site has been adequately secured and supply lines are established, exploration activities within the mining lease area will resume and aim at continuing the drill out of the Galat Sufur South (GSS) deposit where Perseus intends to convert the published Foreign Mineral Reserve Estimate for the MSGP that currently stands at 2.85 million ounces of gold1, into a JORC-compliant Ore Reserve taking into account the results of both recently completed exploration results (see below) and those acquired once drilling activities resume.
In the meantime, negotiation of a framework agreement for providing community assistance were successfully concluded with the main group of traditional owners of land covering the GSS deposit. This agreement provides for establishing a community consultative committee, making financial contributions to a community development fund, and providing a platform for managing constructive working relationships and prioritising recruitment and training of people from the local catchment area.
PROJECT STUDIES
YAOURÉ EXPLOITATION PERMITS
Development of a Feasibility Study for the CMA underground project at the Yaouré gold mine progressed in the June 2023 Quarter, following a successful Pre-Feasibility Study in FY2022. Resource interpretation and estimation, geotechnical and metallurgical studies, operational readiness planning, updated cost estimates and underground mining engineering activities were undertaken during the period. An updated Mineral Resource and Ore Reserve for CMA underground is planned for H2 2023.
Perseus completed conversion drilling of Inferred Mineral Resources located below the existing Yaouré open pit Ore Reserve, which is adjacent to the current CMA open pit, and advanced interpretation and estimation work towards a Mineral Resource and Ore Reserve update planned for H2 2023.
1 This estimate is prepared in accordance with Canadian National Instrument 43-101 standards and has not been reported in accordance with the JORC Code. A competent person has not done sufficient work to classify the resource in accordance with the JORC Code and it is uncertain that following evaluation and/or further exploration work that the estimate will be able to be reported as a mineral resource or ore reserve in accordance with the JORC Code. The Mineral Reserve is stated on 100% basis.
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EXPLORATION
SUDAN
During the early part of the quarter, work focussed on the development of the Galat Sufur South (GSS) deposit at MSGP, (Refer to Appendix 1, Figure 1.1), and included infill resource definition drilling, sterilization trenching and drilling, a passive seismic survey, hydrogeological, metallurgical, and geotechnical work.
Infill resource definition drilling GSS involved completion of eight RC pre-collars (716m) and four diamond holes (1,105m). Assay results received to date, while incomplete, are in line with expectations and confirm and support previous grade and widths. In addition to this sterilisation drilling continued over the future GSS infrastructure areas, with a total of 11 RC holes for an aggregate of 1,100m being completed. Assay results for sterilisation holes received to date have not returned any significant values.
As reported above, in late April, following an escalation of armed conflict in Sudan, on-ground in-country activities were severely disrupted and have been suspended.
COTE D’IVOIRE
Yaouré Exploration and Exploitation Permits
During the quarter, exploration activities focused on resource definition drilling at the Yaouré Pit, just west of the CMA Pit, and Perseus completed 59 holes for an aggregate of 9,660m. The program targeted the conversion to the Indicated category of Inferred Mineral Resources within the US$1,600/per ounce pit optimisation shell. Results from this drilling are being checked, collated and compiled and will be communicated in due course.
As part of the CMA Deeps program, Perseus drilled one hole for an aggregate of 723.70m. The hole followed the updip extensions of the intercepts in YDD0575 which had returned broad mineralised intervals in interpreted seismic reflectors. The gold intercepts were confirmed in the upper portion before the hole deviated and ended in barren volcaniclastics.
As part of the regional generative exploration program on the Yaouré West permit, a small Air Core drilling program 94 holes for an aggregate of 6,085m was completed. No significant gold intercepts were reported in the assay results received during the quarter.
The interpretation of multi-elements assay results from the auger geochemical drilling was completed during the quarter. Lithological classification and alteration patterns suggested potentially prospective targets based on pathfinder indices. Additional investigation will be envisaged during the next financial year.
Sissingué and Mahalé Exploration Permits
A desktop review initiated in the previous quarter was completed on the Sissingué Exploitation Permit area and resulted in a number of targets being defined in the immediate vicinity of the existing Sissingué pits. A phased program comprising ~10,000m of RC drilling started early July.
A small ground magnetics survey was conducted on the Mahalé exploration permit, located east of the Fimbiasso mine, to better define the contours of an intrusion suggested from the airborne magnetics with a better resolution. Data interpretation was underway at the end of the quarter. Refer to Appendix 1, Figures 1.2 for further details.
GHANA
DML Agyakusu PL
During the quarter, exploration activities focused on target generation. A first-pass auger drill program planned to explore significant gold-in-soil anomalies intercepted along the southern extension of the Nkosuo structure continued, which resulted in a number of high-quality targets being defined, which will be followed up during the September Quarter.
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