Perseus gold production down 26% on Edikan plant upgrades

PETH (miningweekly.com) – Dual-listed gold miner Perseus Mining has seen a significant fall in gold production from its Edikan mine, in Ghana, on the back of an extended plant upgrade and a decrease in head grade.

The Edikan mine delivered 32 223 oz of gold during the December quarter, compared with 43 776 oz in the previous quarter. Gold sales declined from 43 952 oz to 22 431 oz during the same period.

Perseus explained on Friday that the 26% reduction in gold production was the result of reduced mill run time, with 22% less ore having being processed in the quarter. The Edikan plant underwent an extended shutdown for upgrades, which are aimed at improving future plant operating performance and reducing maintenance costs.

A decrease in the head-grade accounted for a further 3% of the 26% variance, while a small decrease in the gold recovery rate accounted for the balance.

As a result of the decrease in tonnes of ore processed, unit processing costs during the quarter increased by 36%, compared with the September quarter, reaching $11.70/t, while production costs were up 39% in the same period to $1 526/oz.

The decrease in the December quarter production has resulted in Perseus lowering its half-year production expectations from between 125 000 oz and 145 000 oz, to between 90 000 oz and 110 001 oz.

The firm also adjusted its production costs and all-in sustaining cost guidance to between $885/oz and $1 080/oz and between $1 000/oz and $1 220/oz respectively, from the previous guidance of $950/oz to $1 010/oz and between $995/oz and $1 135/oz.