PRU - Perseus Mining

[mullokintyre]

Mostly infill drilling.There were some interesting exploration results out yesterday near Edikan. Working towards being a 500k oz producer. I wonder what their next move is. Rely on exploration success, a merger of equals or buy a junior??

As a holder of Tie, would be more than happy for one of the others to take them out!.
mick

 

[mullokintyre]

Not a bad quarterly out for PRU.
Gold production up 14% compared to same quarter 2021.
Weighted average AISC decreased (what the hell is "weighted average"???).
Made the forecast figures easily, and is on track to make 470k to 500k ounces per year at an AISC between US932 to US1020 per year.
Net cash of of USD 162 mill after reducing debt and shelling out a small divvy.
Not sure how inflationary pressures in Cot De Ivorie and Ghana are going to affect AISC, we will wait and see.
Mick

 

[Sean K]

Not a bad quarterly out for PRU.
Gold production up 14% compared to same quarter 2021.
Weighted average AISC decreased (what the hell is "weighted average"???).
Made the forecast figures easily, and is on track to make 470k to 500k ounces per year at an AISC between US932 to US1020 per year.
Net cash of of USD 162 mill after reducing debt and shelling out a small divvy.
Not sure how inflationary pressures in Cot De Ivorie and Ghana are going to affect AISC, we will wait and see.
Mick

Very good quarter and half. Should pay off debt in the next half and have $200m in the bank. The explorations looks positive, but 'inorganic' growth opportunities will be interesting. They have to spend that $$ on something.

 

[mullokintyre]

Very good quarter and half. Should pay off debt in the next half and have $200m in the bank. The explorations looks positive, but 'inorganic' growth opportunities will be interesting. They have to spend that $$ on something.

Well, a 15% stake in RCA gold is one way of spending the mullah for inorganic growth.
And the wording suggests that they are exploring the idea of taking out the rest of the shareholders as it says

“The acquisition of the 15% interest in Orca provides Perseus with a pivotal position in Orca that gives us a platform from which to further evaluate what appears to be a very exciting potential growth opportunity.

Mick

 

[Sean K]

Been wondering what the next M&A would be in the gold space with all these cashed up gold companies with no debt and free cash flow.

PRU paying 62.9% above the last closing price of Orca? Lucky Orca shareholders.

PRU de-risking their operations by buying a gold mine in .... Sudan. Plus a 30% share in a mine in Ivory Coast.

I suppose this puts a price on gold resources in Africa at the moment.

In Sudan, Orca have 3.3Moz indicated and a reserve of 2.85Moz @ around 1.1g/t.

Montage Gold in Ivory Coast has 3.16Moz @ .8g/t = about 1Moz for Orca.

So, total about 4.3Moz @ a gram.

Shares and options about 270m and PRU has set a price of 90c a share = 243m indicative MC.

(edit, note: PRU's metrics differ to mine above. Not sure where Orca's extra ounces come from)

So, 243/4.3 = just $56 an ounce?

Add in all the exploration potential, blah blah..

Seems pretty cheap on the surface of it, even though it's even low grade for Africa, and probably adds risk as opposed to reducing it.

They did need to start adding ounces to their inventory to extend production with only 7-8 years left on their other mines.

 

[Sean K]

PRU hitting 5-year highs with a POG assist, plus they seem to be managing their developments pretty well.

 

[brerwallabi]

Amazing

 

[mullokintyre]

Took my profits on PRU today.
Been a great ride, but I like to lock in profits.
I still reckon that there will need to be a correction in Gold, history suggests such a steep run up needs to have a breather at some time.
Mick

 

[Sean K]

Took my profits on PRU today.
Been a great ride, but I like to lock in profits.
I still reckon that there will need to be a correction in Gold, history suggests such a steep run up needs to have a breather at some time.
Mick

Absolutely. I anticipate any suggestion of a ceasefire in Ukraine will be enough reason for a significant drop in gold. (Apparently, negotiations are actually going on in Israel). On the other hand, if those Polish jets start being used to target Russians in Ukraine and Russia says NATO have attacked them, God knows what's next.

 

[mullokintyre]

Absolutely. I anticipate any suggestion of a ceasefire in Ukraine will be enough reason for a significant drop in gold. (Apparently, negotiations are actually going on in Israel). On the other hand, if those Polish jets start being used to target Russians in Ukraine and Russia says NATO have attacked them, God knows what's next.

If that happens, the price of gold and its miners will be the very least of my worries.
Mick

 

[mullokintyre]

PRU released current drilling results from Nkosuo prospect.

Perseus records further impressive drilling results from the Nkosuo prospect on the Agyakusu Prospecting Licence, located within comfortable trucking distance of the processing facility at the Edikan Gold Mine in Ghana.

• Resource definition drilling over the northern part of the deposit is now complete and work has begun on the estimation of a maiden Mineral Resource estimate for Nkosuo. This is due to be completed by the end of the June 2022 quarter.

• Results continue to demonstrate strong potential for shallow, granite-hosted open-pitable gold resources

Will have another pop at this one if it can get below 1.80 again.
Mick

 

[mullokintyre]

PRU released current drilling results from Nkosuo prospect.






Will have another pop at this one if it can get below 1.80 again.
Mick

too late.
Another 52 week high hit on a gold down day.
Mick

 

[mullokintyre]

Bought back in at 1.85 today.
The Quarterly that came out today was as good as the last quarterly.
Record Production, record sales at a higher price.
AISC actually came down again.
Cash increase by 12%
Still holding to their forecasts for the year.
They have more hedging of gold than I like to see, but it seems to be a function of the Oz management to try to derisk.
Gold crunched overnight, so all goldies down.
Seems like an excellent opportunity to buy back in.
Mick

 

[mullokintyre]

Bought back in at 1.85 today.
The Quarterly that came out today was as good as the last quarterly.
Record Production, record sales at a higher price.
AISC actually came down again.
Cash increase by 12%
Still holding to their forecasts for the year.
They have more hedging of gold than I like to see, but it seems to be a function of the Oz management to try to derisk.
Gold crunched overnight, so all goldies down.
Seems like an excellent opportunity to buy back in.
Mick

Well, I got that wrong (again).
Was not a good opportunity to buy back in, the market has come back big time recenly.
Now sitting at 1.61.
Report out today givs increases in reserves and resources.
Always nice to seea potential LOM increase.

PERSEUS INCREASES EDIKAN’S INVENTORIES OF MINERAL RESOURCES AND ORE RESERVES
Perseus Mining Limited (ASX/TSX: PRU) has completed a Feasibility Study on the Nkosuo Project, located approximately seven kilometres north-northwest of its Edikan Gold Mine in Ghana, adding substantial Mineral Resources and Ore Reserves to Edikan’s previously published inventory.
HIGHLIGHTS
• Indicated Mineral Resources1 at Nkosuo amount to 14.5Mt at 0.91g/t for 422,000 ounces of contained gold, and Inferred Mineral Resources are estimated at 0.95 million tonnes grading 0.90 g/t gold containing 27,000 ounces of gold at 30 June 2022.
• Probable Ore Reserves1 total 10 million tonnes of ore grading 1.04g/t gold and containing 332,000 ounces of gold.
• Planned processing of the Nkosuo Ore Reserves in the Edikan mill is expected to increase the life of the Edikan operation by 18 to 24 months, extending the mine life to FY2027

Despite the temptaion to add more at these prices, I already have enough in the portfolio, so kept the trigger finger in the holster.
For now.
Mick

 

[mullokintyre]

PRU quarterly out, looks pretty good.
• Key Operating highlights include:
– Weighted average AISCs of US$952 per ounce for the financial year to 30 June 2022 (FY2022), in the bottom quartile of the market guidance range. AISC for the June 2022 half year and quarter of US$955 and US$1,004 per ounce respectively, both within market expectations.

– Annual gold production of 494,014 ounces was in upper half of market guidance range, notwithstanding a 19-day preventative maintenance shut at Edikan in the June 2022 quarter. Half Year production of 252,850 ounces included 122,327 ounces of gold produced during the June quarter.

– Average cash margin of US$731 per ounce of gold for FY2022, and US$748 and US$701 per ounce respectively for the half and quarterly year periods. – Annual gold sales of 481,075 ounces at a weighted average sales price of US$1,683 per ounce including 111,897 ounces of gold sold during the quarter at US$1,705 per ounce.

– Notional cashflow from operations of US$361 million during FY2022 included June 2022 Half year and quarterly notional cashflows of US$189 million, and US$85 million respectively.
Gold still in the doldrums, so probably will not see a ig jump today, but it is well primed for future increases.
Mick

 

[mullokintyre]

PRU September quarter looks pretty good.
Record quarterly gold production of 137,460 ounces, 12% more than in the June 2022 quarter.
Perseus is on track to achieve its market guidance range of 240,000 to 265,000 ounces for the December 2022 half year.
– Material improvement at the Edikan Gold Mine with gold production up 82% from previous quarter to 52,127 ounces at an AISC of US$1,060 per ounce, 43% lower than the June quarter.
– The Group’s weighted average AISC reduced 12% to US$879 per ounce during the quarter, well below market guidance of $1,000 - $1,100 per ounce for the December 2022 half year.
– Weighted average quarterly sales price of US$1,645 per ounce, generated an average cash margin of US$766 per ounce of gold for the September 2022 quarter.
– Notional cashflow from operations of US$112 million, a 32% increase from the prior quarter.
– The Group’s Total Recordable Injury Frequency Rate (TRIFR) was reduced from 1.29 at the end of the June quarter to 1.19 during the quarter.
Record Gold production keeps them on track for their indicative yearly production.
Most surprisingly, the weighted average AISC is well below indicative forecasts, I expected it to go the other way.
One of my few greens for the day.
Mick

 

[Sean K]

I had quite a bit of mulah invested in this over 10 years ago and it's just coming back to that price. What an amazing run for west African goldies the past month or so.

 

[mullokintyre]

PRU selected as my gold stock in 2022 tipping competition.
It fitted the criteria, and is well placed to benefit from a gold run.
Mick

 

[mullokintyre]

BTL produced this interesting list of the gold producers abd their stock performsnce over the year.
For me, PRU the standout.
CMM seems a bit of an anomaly.

 

[mullokintyre]

PRU reached another all time high this morning.
my average buy in price is 1.76, so well in the money.
Am going to depart from my usual take 10 to 15% profit and sell half.
In for the the medium haul haul on this one, unless it reaches ridiculous prices .
Mick