PRUs recent quarterly profit and loss shows a net profit for the first time since being in production and yet its sp continues to decline. ($2.48 down from $2.80 in 2 weeks) POG is still over 1700 an oz!
Interested to know what others thoughts are on this and if the major lawsuit in Africa over miners with Silicosis would have anything to do with it. I think the claim is only against Anglo Gold but dont know if this is affecting other mining companys in Africa as well. Thoughts on this?
In answer to my own question: Gold was over $1700. Big drop over night saw it fall to $1678 but I think the African Goverment might have something to do with PRUs sp.
Perseus Mining has continued to prosper in the notoriously risky West African sector, passing the 12-month mark since it started production at its gold mine in Ghana.
The miner's latest production result showed gold production of 52,610 ounces for the September quarter, in line with the June quarter but four per cent under its forecast production range.
It blamed slightly lower grades while it faced mechanical problems with its primary crusher during the September quarter at its flagship Edikan mine in Ghana.
Perseus' shares were one cent lower at $2.76 on Tuesday.
The miner is an ASX100 company - with its market capitalisation climbing above $1.83 billion in September last year although its stock price has fallen 31 per cent since then.
It said on Tuesday that sales for the September quarter were 4.7 per cent down on the previous quarter, at 50,785 ounces, on a 2.7 per cent weaker gold price at $US1,463 a fine ounce.
Offsetting the lower numbers were lower cash costs of $US475 an ounce, 30 per cent lower than the previous quarter and 17 per cent lower than guidance, which it attributed to an accounting adjustment.
Perseus has been in production since August 2011.
Since then other West African gold explorers have struggled to bring projects into production as global economic uncertainty and political unrest in Africa has made investors more risk averse.
Perseus has put its second potential mine, the Sissingue gold project in Ivory Coast bordering Ghana, on hold because of the possibility of the government introducing a profit-sharing arrangement.
In Ghana, the government increased the corporate tax rate this year from 25 per cent to 35 per cent and is proposing an additional 10 per cent windfall profits tax.