Perseus shares fall as production falls, costs rise
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More news: Perseus Mining shares dropped after the gold miner met its FY24 production and cost guidance but reported lower output and higher costs compared to the prior year.
Perseus shares were down 5% to $2.45 by 11:35am AEST.
Perseus hits FY guidance, boosted by prices and OreCorp acquisition
The news: Gold miner Perseus Mining met its production and cost guidance for the 2024 financial year, buoyed by rising gold prices and its acquisition of the Nyanzaga gold project in Tanzania.
The numbers: Gold production for the second half totalled 248,000 ounces, within guidance of 226,000 to 254,000 ounces, while the full-year tally of 509,977 ounces compared to the guidance range of 491,000 to 517,000 ounces. However, full-year production fell 4.7% on FY23.
All-in site cost (AISC) of USD1,130 ($1,724) per ounce during the second half was below the cost guidance range of USD1,180 to USD1,340 per ounce. Full-year AISC came to USD1,053 per ounce, around the midpoint of its USD1,000 to USD1,100 range, but a 9.8% rise on last year's figure of USD959.
Perseus' average sales price of USD2,014 per ounce over the year was an 11.7% increase on FY23, including a 4.5% rise in Q4 alone.
The miner recorded cash and bullion of USD587 million at the end of FY23, compared to USD522 million a year earlier.
The context: Perseus noted that the company became 100% owner of ASX-listed OreCorp during the fourth quarter, and as a result gained an 80% contributing interest in Nyanzaga.
The company said that final investment decision on the project is expected by the end of the year, enabling project development to commence in 2025 with the aim of first gold production during the first quarter of 2027.
The source: ASX announcement
