Perseus’s three operating gold mines, Yaouré and Sissingué in Côte d’Ivoire, and Edikan in Ghana have combined to produce a total of 130,523 ounces of gold in the March 2022 quarter, 2% more than in the prior quarter.
The weighted average production cost incurred during the quarter was US$789 per ounce, while the weighted average AISC was US$908 per ounce of gold. Both production costs and AISCs were 4% and 3% lower respectively the previous quarter.
No change has been made to either production or cost guidance for the June 2022 Half Year of 230,000 to 265,000 ounces of gold produced at an AISC of US$915 to 1,085 per ounce. On a year-to-date basis, gold production at our three mines totals 371,687 ounces of gold, produced at a weighted average AISC of US$934 per ounce. No change has been made to either production or cost guidance for the 2022. Financial Year of 471,164- 506,164 ounces of gold produced at an AISC of US$932 to 1,020 per ounce.
Yaouré gold mine, Côte d’Ivoire
During the quarter, Yaouré, increased its gold production by a further 2% compared to the prior quarter to 76,921 ounces of gold at a production cost of US$549 per ounce and an AISC of US$662 per ounce. The weighted average sales price of the 74,947 ounces of gold sold during the quarter was US$1,720 per ounce, giving rise to a cash margin of US$1,058 per ounce.
Notional operating cashflow generated by Yaouré was US$81 million during the quarter, US$6 million more than in the December 2021 quarter. The improving operating performance at Yaouré was a result of improving mill throughput rates (507 tph compared to 487 tph) and run time of 94% compared to 88% during the prior quarter.
Gold recovery rates (93.5% compared to 93.6%) and head grade of processed ore (2.50 g/t to 2.64 g/t) were reasonably steady and in line with expectations. In terms of the 5% reduction in quarter-on-quarter AISCs, the increase in gold production and a decrease in G&A costs were the main contributors to the 7% reduction in production costs.
A slight decrease in royalties due to the timing of sales was offset by a US$5per ounce increase in sustaining capital costs related to costs associated with the tailings’ storage facility and other site building works. Overall, AISCs were US$38 per ounce lower than the prior quarter.
Sissingué gold mine, Côte d’Ivoire
During the quarter, 15,012 ounces of gold were produced at Sissingué at a production cost of US$958 per ounce and an AISC of US$1,067 per ounce. The weighted average sales price of the 16,264 ounces of gold sold during the quarter was US$1,683 per ounce, giving rise to a cash margin of US$616 per ounce. Notional cashflow generated from the Sissingué operation totalled US$9.3 million for the quarter, US$ 3.9 million less than in the prior quarter.
The quarter-on-quarter decrease in gold production of 3,053 ounces was driven by the decrease in head grade during the quarter from 1.67g/t to 1.36g/t. The impact of this expected fall in head grade was offset to a degree by improved run time (97%), and higher mill throughput rates (189tph) while recoveries remained stable at 89.8%.
The 18% or US$152 per ounce increase in quarter-on-quarter AISCs, was primarily a function of the 17% increase in production costs solely attributed to the 17% decrease in the ounces of gold produced during the quarter as explained above. A slight increase in royalties due to the higher gold sales price was largely offset by a decrease in sustaining capital costs.