MARCH 2023 QUARTER REPORT Perseus Mining’s strong operating performance continues with 130,275oz gold produced at AISC of US$971/oz
19 APRIL 2023
NEWS RELEASE
MARCH 2023 QUARTER REPORT
Perseus Mining’s strong operating performance continues with 130,275oz gold produced at AISC of US$971/oz
PERTH, Western Australia/ April 19, 2023/Perseus Mining Limited (“Perseus” or the “Company”) (TSX & ASX: PRU) reports on its activities for the three months’ period ended March 31, 2023 (the “Quarter”).
- Key Operating highlights for the March 2023 quarter and the nine months ending 31 March 2023 include:
| PERFORMANCE | SEPTEMBER 2022 | DECEMBER 2022 | MARCH 2023 QUARTER | FY 2023 TO DATE | |
|---|---|---|---|---|---|
| UNIT | |||||
| INDICATOR | QUARTER | QUARTER | |||
| Gold recovered Ounces 137,460 130,911 | 130,275 | 398,645 | |||
| Gold poured Ounces 139,553 130,992 | 130,512 | 401,057 | |||
| Production Cost US$/ounce 762 881 | 830 | 823 | |||
| All-In Site Cost (AISC) US$/ounce 879 983 | 971 | 943 | |||
| Gold sales Ounces 58,767 203,154 | 135,111 | 397,031 | |||
| Average sales price US$/ounce 1,645 1,748 | 1,821 | 1,757 | |||
| Cash margin US$/ounce 766 765 | 850 | 814 | |||
| Notional Cashflow US$ million 112 101 | 111 | 324 |
- Gold production of 130,275 ounces was within 0.5% of December 2022 quarter production.
- US$971 per ounce weighted average AISC was 1.2% lower than the December 2022 quarter.
- Average sale price of gold sold (135,111 ounces) was US$1,821 per ounce, up 4% or US$73 per ounce compared to December 2022 quarter.
- Average cash margin of US$850 per ounce of gold sold was 11% greater than in the prior quarter, reflecting both an improved realised gold price and the AISC decrease.
- Notional cashflow from operations of US$111 million during the quarter, 10% more than last quarter (US$101 million).
- Perseus’s strong operating performance is forecast to continue in the June 2023 quarter with both gold production and cost guidance for the 2023 June Half Year and Financial Year, expected to be achieved.
- Strong quarterly cashflows further strengthened Perseus’s financial position with available cash and bullion of US$471 million, zero debt, net cash and bullion balance increased by US$66 million at quarter end.
- Perseus’s revolving corporate credit facility upsized to US$300 million during the quarter provides additional capacity to fund its growth strategy while continuing to pay dividends to shareholders.
- Development activities continued at Meyas Sand Gold Project (MSGP) in Sudan, with confirmatory and sterilisation drilling, Front-End Engineering and Design and site preparation, ahead of a possible FID during December 2023 Half Year.
| PERSEUS MINING LIMITED | |
|---|---|
| Level 2, 437 Roberts Road, Subiaco WA 6008 | |
| ABN: 27 106 808 986 | 1 |
- Organic growth activities including Mineral Resource drill outs and feasibility studies for MSGP and 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$156 million (approximately 63% of revenue) during the quarter.
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 130,275 ounces of gold in the March 2023 quarter. The weighted average production cost across all three operations was US$830 per ounce, while the weighted average AISC incurred during the quarter was US$971 per ounce of gold.
In the March 2023 quarter, combined gold sales totalled 135,111 ounces. The weighted average gold price realised was US$1,821 per ounce, US$73 per ounce more than the December 2022 quarter price of US$1,748 per ounce.
Perseus’s average cash margin for the March 2023 quarter was US$850 per ounce, 11% better than the cash margin achieved during the December 2022 quarter. Notional operating cashflow from operations was US$111 million, US$10 million more than the December quarter, driven by the improved gold price achieved and reduced AISC.
These strong results summarised below in Tables 1, 2 and 3 below, confirm Perseus’s position as one of the world’s better performing mid-tier gold producers thus far in 2023.
Table 1: Gold Production Summary by Mine
| TOTAL GOLD RECOVERED (OUNCES) | TOTAL GOLD POURED (OUNCES) | |||||||
|---|---|---|---|---|---|---|---|---|
| MINE | SEPTEMBER | DECEMBER | MARCH 2023 | FISCAL YEAR | SEPTEMBER | DECEMBER | MARCH 2023 | FISCAL YEAR |
| 2022 QUARTER | 2022 QUARTER | QUARTER | 2023 TO DATE | 2022 QUARTER | 2022 QUARTER | QUARTER | 2023 TO DATE | |
| Yaouré 71,469 65,352 Edikan 52,127 53,850 Sissingué 13,864 11,709 | 64,753 | 201,573 72,887 65,456 159,696 53,342 53,615 37,376 13,325 11,919 | 64,512 | 202,855 161,053 37,148 | ||||
| 53,720 | 54,096 | |||||||
| 11,803 | 11,904 | |||||||
| Group | 137,460 | 130,911 | 130,275 | 398,645 | 139,554 | 130,990 | 130,512 | 401,056 |
Table 2: Gold Sales by Mine
| TOTAL GOLD SOLD (OUNCES) | REALISED GOLD PRICE (US$ PER OUNCE) | |||||||
|---|---|---|---|---|---|---|---|---|
| MINE | SEPTEMBER | DECEMBER | MARCH 2023 | FISCAL YEAR | SEPTEMBER | DECEMBER | MARCH 2023 | FISCAL YEAR |
| 2022 QUARTER | 2022 QUARTER | QUARTER | 2023 TO DATE | 2022 QUARTER | 2022 QUARTER | QUARTER | 2023 TO DATE | |
| Yaouré 9,000 126,174 Edikan 49,767 52,601 Sissingué - 24,379 | 67,578 | 202,751 1,748 1,726 157,073 1,626 1,754 37,207 - 1,847 | 1,800 | 1,751 1,741 1,857 | ||||
| 54,705 | 1,834 | |||||||
| 12,828 | 1,877 | |||||||
| Group | 58,767 | 203,154 | 135,111 | 397,031 | 1,645 | 1,748 | 1,821 | 1,757 |
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 | SEPTEMBER | DECEMBER | MARCH 2023 | FISCAL YEAR | SEPTEMBER | DECEMBER | MARCH 2023 | FISCAL YEAR |
| 2022 QUARTER | 2022 QUARTER | QUARTER | 2023 TO DATE | 2022 QUARTER | 2022 QUARTER | QUARTER | 2023 TO DATE | |
| Yaouré 658 798 Edikan 1,060 1,058 Sissingué 1,336 1,672 | 803 | 750 78 61 1,062 30 38 1,480 7 2 | 65 | 202 108 14 | ||||
| 1,067 | 41 | |||||||
| 1,458 | 5 | |||||||
| Group | 879 | 983 | 971 | 943 | 112 | 101 | 111 | 324 |
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 March 2023 quarter and relevant prior periods.
During the quarter, Yaouré produced 64,753 ounces of gold at a production cost of US$677 per ounce and an AISC of US$803 per ounce. The weighted average sales price of the 67,578 ounces of gold sold during the quarter was US$1,800 per ounce, giving rise to a cash margin of US$998 per ounce. Notional operating cashflow generated during the quarter by Yaouré was US$64.6 million, or US$3.9 million more than in the December 2022 quarter.
This performance places Yaouré in a strong position to achieve market guidance for the June 2023 Half Year of 117,500 to 130,000 ounces of gold production at an AISC of US$900 to US$1,000 per ounce.
The strong operating performance at Yaouré resulted from sound operating fundamentals that compared favourably with the prior quarter, including head grade of processed ore (2.26 g/t compared to 2.17 g/t) and throughput rates (491 tph compared to 481 tph). The mill runtime (91% compared to 94%), and gold recovery rates (92.4% compared to 93.6%) both marginally lagged the prior period’s metrics but such variances are well within normal fluctuating operating ranges taking into account scheduled maintenance shut downs and ore type variations.
Table 4: Yaouré Quarterly Performance
| SEPTEMBER 2022 | DECEMBER 2022 | DECEMBER 2022 | MARCH 2023 | FY 2023 TO DATE | ||
|---|---|---|---|---|---|---|
| PARAMETER | UNIT | |||||
| QUARTER | QUARTER | HALF YEAR | QUARTER | |||
| Gold Production & Sales | ||||||
| Total material mined Tonnes 6,991,354 9,369,467 16,360,821 | 8,716,713 | 25,077,534 | ||||
| Total ore mined Tonnes 1,326,508 1,280,881 2,607,389 | 1,280,134 | 3,887,523 | ||||
| Average ore grade g/t gold 1.92 1.80 1.86 | 1.92 | 1.88 | ||||
| Strip ratio t:t 4.3 6.3 5.3 | 5.8 | 5.5 | ||||
| Ore milled Tonnes 980,624 1,001,560 1,982,184 | 962,200 | 2,944,383 | ||||
| Milled head grade g/t gold 2.43 2.17 2.30 | 2.26 | 2.29 | ||||
| Gold recovery % 93.1 93.6 93.2 | 92.4 | 92.9 | ||||
| Gold produced ounces 71,469 65,352 136,821 | 64,753 | 201,573 | ||||
| Gold sales1 ounces 9,000 126,174 135,174 | 67,578 | 202,751 | ||||
| Average sales price US$/ounce 1,748 1,726 1,727 | 1,800 | 1,751 | ||||
| Unit Production Costs | ||||||
| Mining cost US$/t mined 2.87 2.97 2.92 | 2.88 | 2.91 | ||||
| Processing cost US$/t milled 12.18 12.00 12.09 | 12.67 | 12.28 | ||||
| G & A cost US$M/month 2.24 2.14 2.19 | 2.18 | 2.18 | ||||
| All-In Site Cost | ||||||
| Production cost US$/ounce 541 707 620 | 677 | 638 | ||||
| Royalties US$/ounce 93 78 86 | 104 | 92 | ||||
| Sub-total US$/ounce 635 785 706 | 781 | 730 | ||||
| Sustaining capital US$/ounce 23 13 18 | 22 | 19 | ||||
| Total All-In Site Cost2 US$/ounce 658 798 724 | 803 | 750 | ||||
| Notional Cashflow from Operations | ||||||
| Cash Margin US$/ounce 1,090 928 1,003 | 998 | 1,002 | ||||
| Notional Cash Flow US$M 77.9 60.7 137.2 | 64.6 | 201.9 |
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 quarter is US$5 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 March 2023 quarter, 9% more ore tonnes were processed at 4% lower grade for an overall increase of 5% in ounces compared to the Mineral Resource model. In the previous six and twelve months, Yaouré has produced 8% 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 | |
| Tonnes of Ore | 1.09 | 1.13 1.18 | |
| Head Grade | 0.96 | 0.91 0.91 | |
| Contained Gold | 1.05 | 1.03 1.08 |
EDIKAN GOLD MINE, GHANA
Table 6 below summarises the key operating and financial parameters recorded at Edikan during the March 2023 quarter and relevant prior periods.
Edikan produced 53,720 ounces of gold at a production cost of US$916 per ounce and an AISC of US$1,067 per ounce in the March quarter, in line with last quarter’s performance when 53,850 ounces were produced at an AISC of $1,058 per ounce. Gold sales of 54,705 ounces were 4% more than the prior quarter, at a weighted average realised gold price of US$1,834 per ounce, generating an average cash margin of US$767 per ounce. In addition, notional cashflow of US$41.2 million was US$3.7 million better than in the prior period.
Following a challenging FY2022, Edikan has significantly improved the level and consistency of its performance and this is expected to continue in the future. This is likely to result in the June 2023 Half Year guidance of 87,500 to 100,000 ounces at an AISC of US$1,100 to US$1,200 per ounce being comfortably achieved.
Operating performance at Edikan was based on sound operating fundamentals generally in line with the prior quarter. Quarter on quarter, head grade of processed ore increased by 9% (1.09 g/t compared to 1.02 g/t), gold recovery rates were steady at 91.8% (compared to 91.4%), while mill run time (94% compared to 96%), throughput rates (824 tph compared to 846 tph) were down slightly on the prior quarter but remaining within acceptable tolerance ranges.
Table 6: Edikan Quarterly Performance
| SEPTEMBER 2022 | DECEMBER 2022 | DECEMBER 2022 | MARCH 2023 | FY 2023 TO DATE | ||
|---|---|---|---|---|---|---|
| PARAMETER | UNIT | |||||
| QUARTER | QUARTER | HALF YEAR | QUARTER | |||
| Gold Production & Sales | ||||||
| Total material mined Tonnes 6,585,431 7,432,736 14,018,167 | 6,693,065 | 20,711,232 | ||||
| Total ore mined Tonnes 1,523,694 1,824,015 3,347,709 | 1,888,576 | 5,236,285 | ||||
| Average ore grade g/t gold 1.07 1.03 1.05 | 1.07 | 1.05 | ||||
| Strip ratio t:t 3.32 3.07 3.19 | 2.54 | 2.96 | ||||
| Ore milled Tonnes 1,736,623 1,791,242 3,527,865 | 1,671,960 | 5,199,824 | ||||
| Milled head grade g/t gold 1.04 1.02 1.03 | 1.09 | 1.05 | ||||
| Gold recovery % 89.7 91.4 90.5 | 91.8 | 91.0 | ||||
| Gold produced ounces 52,127 53,850 105,977 | 53,720 | 159,696 | ||||
| Gold sales1 ounces 49,767 52,601 102,368 | 54,705 | 157,073 | ||||
| Average sales price US$/ounce 1,626 1,754 1,692 | 1,834 | 1,741 | ||||
| Unit Production Costs | ||||||
| Mining cost US$/t mined 4.38 3.94 4.14 | 4.20 | 4.16 | ||||
| Processing cost US$/t milled 9.19 9.11 9.15 | 9.87 | 9.38 | ||||
| G & A cost US$M/month 1.49 1.61 1.55 | 1.51 | 1.54 | ||||
| All-In Site Cost2 | ||||||
| Production cost US$/ounce 945 935 940 | 916 | 932 | ||||
| Royalties US$/ounce 97 117 107 | 127 | 114 | ||||
| Sub-total US$/ounce 1,042 1,052 1,047 | 1,043 | 1,046 | ||||
| Sustaining capital US$/ounce 18 6 12 | 24 | 16 | ||||
| Total All-In Site Cost2 US$/ounce 1,060 1,058 1,059 | 1,067 | 1,062 | ||||
| Notional Cashflow from Operations1 | ||||||
| Cash Margin US$/ounce 566 696 633 | 767 | 680 | ||||
| Notional Cash Flow US$M 29.5 37.5 67.1 | 41.2 | 108.6 |
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 December 2023 quarter is US$5 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 March quarter, grade control has predicted additional tonnes (+9%), exact grade and more ounces (+8%) 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, however, over a 12-month period, contained gold was slightly under that predicted by the MRE (5%). Therefore, Perseus regards the overall outperformance 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 | 1.09 | 1.09 1.04 | |
| Head Grade | 1.00 | 1.01 0.91 | |
| Contained Gold | 1.08 | 1.10 0.95 |
SISSINGUÉ GOLD MINE, CÔTE D’IVOIRE
Table 8 below summarises the key operating and financial parameters recorded at the Sissingué gold mine during the March 2023 quarter and relevant prior periods.
Table 8: Sissingué Quarterly Performance
| SEPTEMBER 2022 | DECEMBER 2022 | DECEMBER 2022 | MARCH 2023 | FY 2023 TO DATE | ||
|---|---|---|---|---|---|---|
| PARAMETER | UNIT | |||||
| QUARTER | QUARTER | HALF YEAR | QUARTER | |||
| Gold Production & Sales | ||||||
| Total material mined Tonnes 1,639,628 2,039,033 3,678,661 | 2,317,850 | 5,996,511 | ||||
| Total ore mined Tonnes 205,949 310,892 516,841 | 354,784 | 871,625 | ||||
| Average ore grade g/t gold 0.71 0.74 0.73 | 0.88 | 0.79 | ||||
| Strip ratio t:t 7.0 5.6 6.1 | 5.53 | 5.88 | ||||
| Ore milled Tonnes 389,357 410,365 799,722 | 468,679 | 1,268,401 | ||||
| Milled head grade g/t gold 1.21 0.97 1.09 | 0.85 | 1.00 | ||||
| Gold recovery % 91.2 91.9 91.5 | 91.6 | 91.6 | ||||
| Gold produced ounces 13,864 11,709 25,573 | 11,803 | 37,376 | ||||
| Gold sales1 ounces 0 24,379 24,379 | 12,828 | 37,207 | ||||
| Average sales price US$/ounce 0 1,847 1,847 | 1,877 | 1,857 | ||||
| Unit Production Costs | ||||||
| Mining cost US$/t mined 3.72 3.96 3.85 | 3.71 | 3.79 | ||||
| Processing cost US$/t milled 16.71 16.46 16.58 | 12.69 | 15.14 | ||||
| G & A cost US$M/month 1.39 1.31 1.35 | 1.46 | 1.43 | ||||
| All-In Site Cost 2,3 | ||||||
| Production cost US$/ounce 1,209 1,602 1,389 | 1,276 | 1,354 | ||||
| Royalties US$/ounce 122 63 95 | 121 | 103 | ||||
| Sub-total US$/ounce 1,331 1,665 1,484 | 1,397 | 1,457 | ||||
| Sustaining capital US$/ounce 5 7 6 | 61 | 23 | ||||
| Total All-In Site Cost US$/ounce 1,336 1,672 1,490 | 1,458 | 1,480 | ||||
| Notional Cashflow from Operations 3 | ||||||
| Cash Margin US$/ounce 309 174 357 | 419 | 377 | ||||
| Notional Cash Flow US$M 7.1 2.0 9.1 | 4.9 | 14.0 |
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 December 2023 quarter is US$1 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. For the March 2023 Quarter, US$4.2m (FY2023 to date, US$4.6m), relating to pre-commercial-production operating costs at Fimbiasso, have been capitalised out of All-In-Site-Costs. Furthermore, for these periods, the number of oz produced used for the AISC, cash margin and notional cash flow calculations has been reduced by 269oz, also relating to Fimbiasso production.
During the quarter, Sissingué produced 11,534 ounces of gold at a production cost of US$1,276 per ounce and an AISC of US$1,458 per ounce. A further 269 ounces of gold were produced from ore mined from the Fimbiasso deposit, as these satellite pits ramp up into commercial production, for a total of 11,803 ounces for the Sissingué Gold Complex.
Most of the ore processed at Sissingué was drawn from low-grade stockpiles as well as from the remnants of West Arm, Binkadi and Bagoé pits adjacent to the Sissingué plant.
Mining of higher-grade ore commenced during the quarter in the satellite pits at Fimbiasso East and West, however, mobilisation delays experienced by our haulage contractor limited the amount of material that was transported back from Fimbiasso to the Sissingué plant for processing.
Notwithstanding this, overall production performance by Sissingué during the quarter was very solid in most areas with only head grade (0.85g/t) down relative to the prior quarter and below targets as a result of the mobilisation issues referred to above. This situation has been resolved subsequent to the end of the quarter and material improvements in the grade of processed ore is expected in coming periods with the inclusion of higher grade Fimbiasso ore in the mill feed. Other key operating parameters during the quarter including runtime (97%), and throughput rate (224 tph) were both better than the prior quarter while the recovery rate (91.6%) was fractionally lower than the prior quarter largely due to the fall in head grade of ore processed.
The AISC of US$1,458 per ounce was slightly improved on the previous quarter despite the delay in declaring commercial production at Fimbiasso. Not included in this AISC is pre-commercial-production operating costs incurred on Fimbiasso of $4.2m, which has been capitalised as (non-sustaining) development expenditure.
The weighted average sales price of the 12,828 ounces of gold sold during the quarter was US$1,877 per ounce, giving rise to an average cash margin of US$419 per ounce. Notional cashflow generated by the mine during the quarter totalled US$4.9 million.
BAGOÉ MINING LEASE
Perseus’s environmental and social impact assessment (“ESIA”) for its proposed Bagoé mining operation was approved by the environmental regulator (ANDE) and has been lodged with the Department of Mines, Petroleum and Energy together with the Definitive Feasibility Study of an operation located on the Bagoé exploration permit. Required community consultation processes are being conducted and approval is expected during the next few months. The Exploitation Permit should be granted thereafter and a Mining Convention covering the operation negotiated in due course. Construction of infrastructure required to support a mining operation on the Bagoé lease will commence as soon as possible following receipt of the Mining Lease.
MINERAL RESOURCE TO MILL RECONCILIATION
The reconciliation of processed ore tonnes, grade and contained ounces relative to the Sissingué Mineral Resource block model is in Table 9 below. During the last three months, grade control has predicted additional tonnes (+18%) at a reduced grade (-10%) resulting in an increase in overall ounces (+6%) when compared to the Mineral Resource Estimate (MRE). This trend has continued over the past six- and 12-month periods, with Sissingué producing overall more metal than the Mineral Resource model predicted. Perseus regards the overall outperformance as being within normal industry standards.
Table 9: Sissingué Block Model to Mill Reconciliation
| BLOCK MODEL TO MILL CORRELATION FACTOR | |||
|---|---|---|---|
| PARAMETER | |||
| 3 MONTHS | 6 MONTHS | 1 YEAR | |
| 1.18 | |||
| 0.90 | |||
| 1.06 |
GROUP GOLD PRODUCTION AND COST MARKET GUIDANCE
Group gold production and AISC’s for the June 2023 Half Year and the full 2023 Financial Year are as shown below in Table
10. This guidance data remains unchanged from that previously provided to the market.
Table 10: Production and Cost Guidance
| FISCAL YEAR 2023 TO DATE | JUNE 2023 HALF YEAR | 2023 FINANCIAL YEAR | ||
| PARAMETER | UNITS | |||
| (ACTUAL) | (FORECAST) | (FORECAST) | ||
| Yaouré Gold Mine |
Production Ounces 201,573 117,500 to 130,000 254,300 to 266,800 All-in Site Cost USD per ounce 750 900 to 1,000 850 to 900
Sissingué Gold Mine
Production Ounces 37,376 25,000 to 30,000 50,600 to 55,600 All-in Site Cost USD per ounce 1,480 1,750 to 1,850 1,625 to 1,675
Edikan Gold Mine
Production Ounces 159,696 87,500 to 100,000 193,500 to 206,000 All-in Site Cost USD per ounce 1,062 1,100 to 1,200 1,075 to 1,125
PERSEUS GROUP
Production Ounces 398,645 230,000 to 260,000 498,370 to 528,370 All-in Site Cost USD per ounce 943 1,000 to 1,200 1,000 to 1,100
SUSTAINABILITY
SUSTAINABILITY GOVERNANCE
During the quarter, Perseus continued to strengthen its sustainability governance through the following:
- Continued to work to improve our Group safety performance by holding several training seminars and workshops. This included “Safely Home Every Day” (SHED) Leadership Workshops at each of our operations, , skills training for supervisors, and ongoing field coaching for our employees and contractors.
- Conducted regular environmental workplace inspections across all sites, including daily inspections for Sudan with the intention of educating the workforce.
- Finalised the Environmental Impact Statement (EIS) for the Bagoé project near Sissingué, with the EIS report validated and recommendations addressed.
- Received approval for an occasional explosive use arrangement and a temporary fuel farm permit for the Fimbiasso project near Sissingué. Application for permanent permits has been lodged and approval is currently awaited.
- Conducted road safety sessions with the communities which will be impacted by ore haulage from Fimbiasso.
SUSTAINABILITY PERFORMANCE
This quarter, Perseus continued its strong sustainability performance relative to objectives and targets, as shown below in Table 11 and summarised as follows:
- Safety:
- Safety performance across the portfolio has improved this quarter, with the Group Total Recordable Injury Frequency Rates (TRIFR) decreasing from 1.43 at the end of the December quarter to 1.23 at the end of March 2023. However, this remains higher than the FY23 threshold of 1.10 and target of 0.8. There were only two recordable injuries for the quarter across all sites, with one Restricted Work Injury recorded for Sudan in March 2023, and one Lost Time Injury recorded for Yaouré in February 2023, where an EPSA worker fell and broke a wrist.
- Lost Time Injury Frequency (LTIFR) across the Group remained stagnant at 0.25. Most sites are maintaining their safety milestones of no Lost Time Incidents, except for Yaouré.
- Social:
- Total economic contribution to Perseus’s host countries of Ghana and Côte d’Ivoire for the reporting quarter was around US$156 million (approximately 63% of revenue), which included approximately US$111 million paid to local suppliers representing 88% of procurement on Purchase Order Value basis, US$7.2 million paid as salaries and wages to local employees, US$37 million in payments to government as taxes, royalties and other payments, and around US$1.1 million in social investment (includes accrual for Yaouré). There was an increase in contribution to local procurement for the quarter, increasing from 87% for the quarter ended December 2022 to 88% for the quarter ended March 2023.
- Local and national employment remained stable at 96% for the reporting quarter. Across the Perseus group, our gender diversity remaining stable with the proportion of female employees increasing slightly to 12.4% for the quarter compared to approximately 12% for the quarter ended December 2022, reflecting the industry in which we are involved but more particularly, the cultural orientation of our host countries.
- No significant community events occurred during the quarter. One Category 2 community event occurred in January 2023, during which community members of the Kossou village blocked the main road to the mine site from 4am till 1pm, protesting over dust. This is not considered a significant event and has not been recorded as such in the below table.
- Environment:
- Total Scope 1 and 2 Greenhouse Gas emissions intensity per ounce of gold produced decreased from 0.54 tCO2e/oz for the quarter ended December 2022 to 0.53 tCO2-e/oz for the quarter ended March 2023. This continues to be well below peer average (0.78 tCO2-e/oz).
- 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:
- As mentioned, there were two employee and contractor injuries which occurred during the quarter, which included one Restricted Work Injury in Sudan.
- Illegal mining activities on Perseus’s mining and exploration licence areas continue to present challenges for the Company across our activities in Ghana, Côte d’Ivoire and Sudan. The Company 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 | FY2022 | SEPTEMBER 2022 | DECEMBER 2022 | MARCH 2023 |
| DRIVER | QUARTER | QUARTER | QUARTER |
Governance Compliance Material legal non-compliance Number 1 110000 0 0
Social Worker Health, Safety and Workplace fatalities Number 1 0 0 0 Wellbeing Total Recordable Injury Frequency (TRIFR) Total Recordable Injuries per Edikan – 1.01 Edikan – 1.02 Edikan – 1.42 Edikan – 1.02 million hours worked, rolling 12 Sissingué - 0.00 Sissingué - 0.54 Sissingué – 1.05 Sissingué – 0.96 months Yaouré - 2.59 Yaouré – 1.93 Yaouré – 1.27 Yaouré – 0.94 Exploration - 0.66 Exploration - 0.74 Exploration – 1.831 Sudan – 2.81 Group – 1.29 Group – 1.19 Group – 1.431 Exploration – 1.92
Group – 1.23 Lost Time Injury Frequency (LTIFR) Lost Time Injuries (LTIFR) per Edikan - 0.20 Edikan - 0.41 Edikan - 0.41 Edikan - 0.20 million hours worked, rolling 12 Sissingué - 0.00 Sissingué - 0.00 Sissingué - 0.00 Sissingué - 0.00 months Yaouré - 0.00 Yaouré - 0.00 Yaouré - 0.00 Yaouré - 0.31 Exploration - 0.66 Exploration - 0.00 Exploration - 0.00 Sudan – 0.00 Group - 0.26 Group - 0.26 Group - 0.25 Exploration - 0.00
Group - 0.25
| COVID-19 Cases | Number | 131 | 5 | 1 | 3 | |
| Community | Number of significant2community events | Number | 0 | 0 | 2 | 0 |
| Community investment | US$ | US$3,600,8053 | US$925,3673 | US$1,369,6793 | US$1,114,3883 | |
| Economic Benefit | Proportion local and national employment | % of total employees | 96% | 96% | 96% | 96% |
| Proportion local and national procurement | % of total procurement | 81% | 78% | 87% | 88% | |
| Gender Diversity | Board gender diversity | % | 33% | 33% | 33% | 33% |
| Executive gender diversity | % | 29% | 14% | 14% | 13% | |
| Proportion of women employees | % | 13.0%4 | 14.0%4 | 12.0%4 | 12.4% | |
| Responsible Environment | Number of significant2environmental | Number | 0 | 0 | 0 | 0 |
Operations events Tailings Number of significant2 tailings dam integrity Number 0 0 0 0 failures Water stewardship Water used per ounce of gold produced5 M3/oz 7.87 5.71 6.991 9.09
Greenhouse Gas Emissions Scope 1 and 2 Greenhouse Gas Emissions Tonnes of CO2-e/oz 0.55 0.47 0.541 0.53 per ounce of gold produced Notes: 1. Corrected/re-stated figure from the September 2022 and December 2022 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.
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ORGANIC BUSINESS GROWTH
PROJECT DEVELOPMENT
MEYAS SAND (FORMERLY BLOCK 14) GOLD PROJECT, SUDAN
The 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.
During the quarter, Perseus made progress towards preparing for a possible Final Investment Decision (FID) in the second half of 2023. Specific activities undertaken during the quarter included:
- Engineering and preparation of Front-End Engineering Design (FEED) studies performed by Perseus and its engineering contractor, Lycopodium, to optimise previous engineering planning and design work.
- Internationally recognised drilling contractor, Capital Drilling, completed approximately 20,000m of the 100,000m infill and sterilisation drilling program designed to infill prior drilling of the Gulat Sufur South (GSS) deposit and potentially materially increase the estimated Mineral Resource and Ore Reserve, as well as confirm proposed infrastructure locations through sterilisation of the sites.
- Australasian Groundwater and Environmental Consultants continued hydrology modelling, after completing a programme of pressure testing, (specifically recharge rates) of the aquifer located in Area 5 that will become the primary water source for what will become the Meyas Sand Gold Mine. Progress to date gives Perseus confidence that the aquifer will support water requirements for the projected life of the mine.
- A passive seismic survey was conducted to identify localised sources of construction water.
- Construction of site access roads progressed, with completion of 10km of the 100km pipeline corridor road.
- Knight Piesold completed an initial design review on the proposed tailings storage facility (TSF). Detailed engineering is set to commence in June 2023 quarter.
- Design review on the 100km raw water pipeline by Fortin Pipelines was completed. Detailed engineering is set to commence in September 2023 quarter.
- A tender process for supply of a Hybrid-Renewable power station commenced.
- Significant progress was made to upgrade onsite accommodation and administration facilities, in preparation for accommodating 300 workers to support of the initial construction phase.
- Procurement of construction and site capability assets such as cranes, light vehicles, civil fleet, and tools required to support construction and operations. These activities are proving the logistics arrangements that will ultimately be important for supporting mining and processing activities.
Negotiation of framework agreements for providing community assistance was advanced during the quarter with the traditional owners of land covered by the Block 14 Exploration licence. These agreements provide for establishing community consultative committees, making financial contributions to community development funds, and providing a platform for managing cordial working relationships and prioritising recruitment and training of workers from the local catchment area.
PROJECT STUDIES
YAOURÉ EXPLOITATION PERMITS
Development of a Feasibility Study for the CMA Underground Project (CMAUP) at the Yaouré gold mine progressed during the March 2023 quarter, following successful completion of a Pre-Feasibility Study in FY2022. Resource drilling activities were completed during the quarter, as were geotechnical and metallurgical test work programs. An updated Mineral Resource and Ore Reserve for the CMAUP is planned for release during the December 2023 Half Year.
Conversion drilling of Inferred Mineral Resources located below the existing Yaouré open pit Ore Reserve, that is adjacent to the current CMA open pit, commenced during the quarter. A Mineral Resource update for Yaouré open pit is also planned for release in the December 2023 Half Year.
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EXPLORATION
SUDAN
During the quarter, work focused on the development of the GSS deposit at MSGP. This included infill resource definition drilling, sterilisation trenching and drilling, hydrogeological, metallurgical, and geotechnical work. A significant amount of work has gone into understanding geological controls, refining and remodelling the Mineral Resource.
Limited regional exploration was conducted during the quarter on the broader Block 14 Exclusive Prospection License (EPL). Refer to Appendix 1, Figure 1.1. The work that did take place included detailed mapping and geochemical sampling over a cluster of near-mine exploration targets. An RC drill program designed to provide a preliminary assessment of several “near mine” targets will be undertaken in the June 2023 quarter.
CÔTE D’IVOIRE
Yaouré Exploration and Exploitation Permits
During the quarter, activities on the Yaouré Exploitation Permit. Refer to Appendix 1, Figure 1.2, continued to focus on drilling at the CMA North and CMA South underground prospects, located within 2km of the Yaouré mill. Work programs including drilling of a total of 128 holes for an aggregate 24,213m, were completed during the quarter.
At the CMA North underground prospect, drilling was completed to infill a gap in the existing drill pattern and to achieve a 50-60m drill spacing across the lower part of the CMA Underground Prefeasibility optimized Resource model between 900mRL and 800mRL. The program targeted the northern down-dip extension of the CMA lode between 1,000mRL and 900mRL over an initial strike length of 600m, with 60m down-dip intercepts on 50m spaced sections. Drilling comprised a total of 8,805m. Results to date from the infill drilling program were generally consistent with those previously encountered in both thickness and grade.
Drilling was also carried out to assess the extension at depth of previously untested potentially economic mineralisation in the southern half of CMA. Phase 1 of this program drilled the target area over 100m along strike and 120m downdip. Drilling comprised a total of 2,718m.
At Yaouré Pit, drilling targeted the conversion of Inferred Mineral Resources to the Indicated category within the US$1,600/oz pit optimisation shell. A total of 12,684m were drilled. Drilling continues and is expected to be completed within the coming quarter.
Assay results from the “CMA Deeps” program received during the quarter indicate that the deep intrusion identified in the 2020 3D seismic is weakly mineralised with grades of up to 1 gram per tonne gold. Further structural interpretation of the data was completed, and additional, potentially mineralised targets defined.
On the Yaouré West Exploration Permit, multi-elements assay results from the auger geochemical drilling were received and assessment of the results is underway. The auger drill program is designed to map geology and define potential targets through the delineation of alteration patterns using a combination of multi-element, XRF and mineral spectroradiometry (ASD) analyses.
Evaluation of high priority “regional targets” on the Yaouré West exploration permit will commence in the June 2023 quarter.
Sissingué and Mahale Exploration Permit
Desktop reviews were carried out with soil geochemistry and ground magnetics grids proposed for Sissingué and Mahalé. Work is expected to be completed during the June 2023 quarter.
GHANA
Exploration activities in the quarter focused on the recently acquired Exploration Permits located within trucking distance of the Edikan processing facility, adjacent to the existing mining lease. Refer to Appendix 1, Figure 1.3.
DML Agyakusu PL
During the quarter, activities included mapping, geochemical sampling and auger drilling. The first-pass auger drill program designed to evaluate high priority gold-in-soil anomalies defined along the Nkosuo structure south of Nkosuo gold deposit resumed. To the end of March 2023, a total of 314 holes had been completed for an aggregate
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