ASX / TSX - listed West African gold producer Perseus Mining, has released its Financial Report for the financial year ending 30 June 2018.
The Perseus group produced a total of 255,916 ounces of gold in the twelve months to June 2018, 45% more than in the preceding twelve months.
The weighted average all-in site costs including the costs of production, royalties and sustaining capital averaged US$1,039 per ounce of gold produced, 22% less than in the preceding twelve months.
MD Jeff Quartermaine comments:
“A look behind the headline numbers reported by Perseus reveals a company that is continuing to improve in all aspects of the business.
"At $137.8 million, our gross profit from operations before depreciation and amortisation is materially better than in the past.
"This year has seen an increase in non-cash items that have negatively impacted our reported our net after tax earnings.
"The non-cash depreciation and amortization charge has increased as we mine and process more ore and the results have also been impacted by our decision to carefully examine the carrying value of our assets and in some instances, write down the value of any assets to reflect forecast underlying values.
"Our net cash flow from operations has increased by $67.4 million during the year and with cash and bullion on hand valued of $89.8 million at the end of the year we are now in a net cash positive position after the money that we borrowed to build Sissingué has been brought to account.
"This positive trend of net cash growth is now well established which is important in the context of where we are positioned on our corporate growth trajectory.
"We are confident that Perseus is well on track to deliver value to its shareholders.
"The Sissingué mine which came on stream earlier this year will make a significant contribution to the bottom line when it operates for a full twelve months, rather than three months as was the case this year.
"Not to be outdone, the Edikan mine is also performing materially better than it has done in the past and is making a solid contribution to free cash flow.
"In the coming financial year, we expect to commence development of our third operating mine, Yaouré and when this mine comes on line in early 2021, Perseus’s production levels should be in the order of 500,000 ounces of gold per year.
"Subject to the gold price at that time, this should mean that Perseus will be in a position to generate material amounts of free cash flow and record significant profits.”