Perseus profits plummet in H1

PERTH (miningweekly.com) – Dual-listed gold miner Perseus Gold has reported a significant fall in its profits after tax for the half-year ended December, on the back of a decrease in foreign exchange gains owing to the weakening in the Australian dollar.

Net profit after tax declined to A$11.9-million, compared with the A$41.1-million reported in the previous corresponding period.

In addition to the foreign exchange losses, Perseus also reported a A$4.8-million impairment charge on exploration.

“Favourable foreign exchange movements have certainly improved our second-half profit results in Australian terms, but significant cost savings and productivity gains underpin the performance, as does a prudent approach to gold price risk management, which has delivered an average gold price of $1 280/oz in a falling gold market,” said MD Jeff Quartermaine.

Despite a decline in gold production from 100 016 oz to 76 693 oz between the 2014 and 2015 interim periods, revenue was up 5% from A$142-million to A$149-million.

Mining costs also decreased by 48%, to $2.40/t, while processing unit costs decreased 15% to $9.19/t.

The material reduction in unit costs positioned Perseus well heading into an intensive waste stripping exercise to open new pits on the eastern side of the Edikan mining lease, in Ghana, Quartermaine added.

With the operation returning to average stripping ratios towards the end of the half-year, and access gained to higher-grade fresh ore supplies, production for the remainder of the financial year was expected to increase.