Perseus Mining Limited · ASX:PRU

Perseus Mining — Investor Presentation (February 2014)

44 slides from Perseus Mining's investor presentation, Feb 17, 2014

  1. Slide 1: Capital Raising Presentation

    For personal use only C A P I TA L R A I S I N G P R E S E N TAT I O N 1 7 F E B R U ARY 2 0 1 4 Jeff Quartermaine Managing Director & CEO ASX/TSX: PRU Not for release or distribution in the United States of America www.perseusmining.com

  2. Slide 2: Cautionary Statements

    Cautionary Statements For personal use only Forward-Looking Statements This report contains forward-looking information which is based on the assumptions, estimates, analysis and opinions of management made in light of its experience and its perception of trends, current conditions and expected deve

  3. Slide 3: Perseus in a snapshot

    Perseus in a snapshot For personal use only  ASX/TSX listed gold explorer, developer and producer  West African based – Ghana and Côte d’Ivoire  Edikan Gold Mine in Ghana in commercial operation since January 2012  Sissingué Gold Project in Côte d’Ivoire ready for development  Debt free balance

  4. Slide 4: Capital Raising Overview

    Capital Raising Overview For personal use only  Perseus is conducting an institutional placement to raise up to approximately A$30m  Price to be determined by book build  UBS AG is Lead Manager and GMP Co-manager  Proceeds to be used for:  Approximately $15M of capital expenditure to accelerate

  5. Slide 5: Perseus's West African Projects

    Perseus’s West African Projects For personal use only Mauritania Mali Niger Senegal Burkina MALI Guinea Faso Benin 70Moz Nigeria Togo B U R K I N A FA S O Ghana Ghana Côte d’Ivoire Sissingué GUINEA SIERRA GHANA LEONE CÔTE D'IVOIRE LIBERIA 170Moz Edikan 3

  6. Slide 6: Mineral Resources and Reserves

    Mineral Resources and Reserves For personal use only 7.1Moz of Measured & Indicated Mineral Resources (87% in Ghana) (187Mt at 1.1g/t) INCLUDING PLUS 3.6Moz 3.0Moz (82% in Ghana) (90% in Ghana) of Proven & Probable Reserves of Inferred Mineral Resources (92Mt at 1.2g/t) (101Mt at 1.1g/t) 4

  7. Slide 7: Key investment parameters

    Key investment parameters For personal use only  457.96m outstanding ordinary shares Major Shareholders*  466.84m shares fully diluted Van Eck Global Paradice Investment Management  Approx. A$230m market capitalisation* *Based on $0.50 share price 1832 Asset Management USAA  52-week share price

  8. Slide 8: Financial Position at December 2013

    Financial Position at 31 December 2013 For personal use only  Available cash and bullion on hand of A$28.2M  Company debt free  Hedge position of 124,000oz of gold <(5% of Ore Reserves) hedged at US$1,463/oz to Dec 2015 valued at US$31.4M  VAT receivable of US$39.4M owing from Ghanaian Governmen

  9. Slide 9: December 2013 Half Year Result Summary

    December 2013 Half Year Result Summary A$’000 For personal use only Revenue from gold sales 135,276 Net Loss after tax (4,024) Earnings per Share (A$ cents per share) (0.84) Notes: Return on Funds Employed2 (%) n/a 1. Assumes 31 December 2013 half year average AUD:USD exchange rate of 0.9218 and exc

  10. Slide 10: Key Improvement Metrics

    Key Improvement Metrics For personal use only Key Parameter Units June 2013 September 2013 December 2013 Quarter Quarter Quarter Annualised milling rate Mdmt 5.7 6.4 7.1 Gold recovery rate % 80.7 83.4 84.4 Processing cost US$/t milled 14.42 11.61 10.77 Total All-in Site Cost US$/oz 1,405 1,342 1,228

  11. Slide 11: Current state of play.....

    Current state of play..... For personal use only  High quality asset portfolio. Value not currently reflected in share price  Share price is very highly leveraged to:  Movements in gold price  Operational performance  Movements in the gold price beyond our control, but …….  Improvement in oper

  12. Slide 12: Four point plan to improve performance

    Four point plan to improve performance For personal use only 1. Optimise Edikan Life of Mine Plan focussing on maximising cash margins and increasing NPV 2. Focus on process improvements at Edikan 3. Focus on reduction of costs across the company 4. Focus on efficiency of capital deployment 10

  13. Slide 13: Edikan Site Layout

    Edikan Site Layout For personal use only Reserves 5km radius Esuajah Resources Esuajah North Abnabna South Current production pits Fobinso MILL SITE Fetish Bokitsi Chirawewa Mampon Dadieso 11

  14. Slide 14: Life of Mine Planning Process

    Life of Mine Planning Process For personal use only Four stages of planning:  Revised Mineral Resource Estimate as at 30 June 2013  Performed scenario planning  Detailed mine planning  Revised Ore Reserve estimate as at 30 June 2013  Both Mineral Resources and Ore Reserve estimates prepared by

  15. Slide 15: Revised Life of Mine Plan

    Revised Life of Mine Plan For personal use only  Revised Plan based on US$1,200/oz pit shells  Results in:  Tonnes of ore and waste moved Down 15%  Life of mine strip ratio Down 16%  Contained gold in Ore Reserve Down 6%  Life of mine Increased to 2024  FY2014 – plan unchanged  FY2015-FY2018

  16. Slide 16: Life of Mine Plan – Production Profile

    Life of Mine Plan – Production Profile For personal use only Parameter FY2014 FY2015 FY2016 FY2017 FY2018 LOM Average Ore mined (Mt) 5.3 7.7 9.7 9.4 7.4 8.7 Waste mined (Mt) 22.9 26.6 26.5 26.4 28.8 25.1 Strip ratio (t:t) 4.3 3.5 2.7 2.8 3.9 2.9 Ore processed (Mt) 7.5 7.4 7.5 7.5 7.5 7.5 Head grade

  17. Slide 17: Life of Mine Plan – Operating and Capital Costs

    Life of Mine Plan – Operating and Capital Costs For personal use only US$ per oz FY2014 FY2015 FY2016 FY2017 FY2018 LOM Average Mining 479 481 474 551 486 410 Processing 344 282 291 293 276 294 General & Admin 118 95 95 96 88 91 Subtotal 941 858 860 940 851 799 Royalty 79 82 82 78 78 79 Sustaining C

  18. Slide 18: Focus on process improvement providing results

    Focus on process improvement providing results For personal use only  Co-operating with mining contractor, AMS, for win-win outcomes on productivity  Repaired defects in primary crusher  Significantly improved mill run time  Significantly improved stability of process circuit  Key personnel cha

  19. Slide 19: Focus on controlling unit cash costs

    Focus on controlling unit cash costs For personal use only  Reducing investment in waste stripping  Budget improvement initiatives:  Cooperation with AMS to improve productivity  Reduction in consumable prices  Reduction in logistics and hiring costs  More efficient use of site vehicles  Rest

  20. Slide 20: Focus on deployment of capital

    Focus on deployment of capital For personal use only  Sustaining capital at Edikan reduced to US$16M in FY2014 by deferring or eliminating projects  Exploration budgets reduced from US$25M to US$10M in FY2014  Sissingué Gold Mine development decision deferred until mid-2014 at earliest  Sissingu

  21. Slide 21: Steady Trend of Improvement in Key Productivity Measures

    Steady Trend of Improvement in Key Productivity Measures For personal use only Key Parameter Units June 2013 September 2013 December 2013 Quarter Quarter Quarter PRIMARY CRUSHER Hourly crushing rate wmt 1,158 1,284 1,293 Daily crushing rate wmt 12,734 17,142 18,060 Annualised crushing rate Mwmt 4.7

  22. Slide 22: Steady Trend of Improvement in Key Productivity Measures

    Steady Trend of Improvement in Key Productivity Measures For personal use only Key Parameter Units June 2013 September 2013 December 2013 Quarter Quarter Quarter SAG MILL Hourly milling rate dmt 869 874 954 Daily milling rate dmt 16,606 17,705 19,472 Annualised milling rate Mdmt 5.7 6.4 7.1 Mill run

  23. Slide 23: Steady Trend of Improvement in Site Costs

    Steady Trend of Improvement in Site Costs For personal use only Key Parameter Units June 2013 September 2013 December 2013 Quarter Quarter Quarter Mining cost US$/t mined 3.42 4.16 3.71 Processing cost US$/t milled 14.42 11.61 10.77 US$M/ G&A cost 2.02 1.63 1.62 month Total Production Cost US$/oz 1,

  24. Slide 24: Production Performance - Mining

    Production Performance- Mining Comments For personal use only • Strip Ratio Increased in the quarter due to the need to strip waste in AG Stage 3 Pit. The strip-ratio will decrease in coming months with ore now exposed on the 1095 mrl - with some good grades. • Mining rate reduced to 820 kbcm per mo

  25. Slide 25: Production Performance - Mining

    Production Performance- Mining Comments For personal use only • Ore mining was tailored to crusher availability to increase the percent of direct tipping – ore was held in the pit during the crusher refurbishment shut. • ROM pad rationalised with construction of the skyway out of waste. Ore fingers

  26. Slide 26: Production Performance - Processing

    Production Performance - Processing For personal use only Comments Mill Feed Rate • Made steady increase in FY14-Q2 1000 partly due to oxide component in feed from CV501. Along with measures in 950 place to concentrate on optimising the primary crusher feed blend – 900 based on ore hardness. 850 • D

  27. Slide 27: Historical Throughput - Processing

    Historical Throughput - Processing For personal use only Comments • Highest average quarterly throughput rate achieved in FY14-Q2 of 954tph. • Average throughput in FY14-Q2 for fresh ore was 823tph, and oxide ore 131tph. 25

  28. Slide 28: Production Performance - Processing

    Production Performance - Processing For personal use only Comments Tonnes Milled • Run time on the SAG mill is 2,000,000 continuing to improve 1,800,000 • Have a BII to ensure we are undertaking PM’s and Increasing 1,600,000 runtime 1,400,000 Tonnes Milled, t 1,200,000 1,000,000 800,000 600,000 Actu

  29. Slide 29: Production Performance - Processing

    Production Performance - Processing For personal use only Comments Mill Run Time • Run time on the SAG mill is 100.0 continuing to improve • BII to ensure we are undertaking 95.0 PM’s and Increasing runtime 90.0 85.0 SAG mill run time, % 80.0 75.0 70.0 65.0 Actual 60.0 Budget 55.0 50.0 FY-12-Q1 FY-1

  30. Slide 30: Production Performance - Processing

    Production Performance - Processing For personal use only Comments • Recovery is commencing to Gold Recovery increase and stabilise through 100.0 additional focus in the plant and additional stability. 95.0 • Flotation sulphide recovery on target. 90.0 • Opportunity to improve gravity Gold recovery,

  31. Slide 31: Production Performance - Processing

    Production Performance - Processing For personal use only Comments • Grade is reducing but will plateau Head Grade at 0.9g/t-1g/t, before increasing 1.80 next quarter; 1.70 • Need to maximise feed grade and 1.60 mined ore grade (0.05g/t = 10.3kozs per annum - BII) 1.50 1.40 Head Grade, g/t 1.30 1.20

  32. Slide 32: Sissingué Gold Mine Development

    Sissingué Gold Mine Development: For personal use only  Deferred development decision until mid-2014 at earliest  Exploration success at Mahalé and Mbengué may warrant revisions to development plan and give rise to new opportunities  Currently:  Exploring high-priority Mahalé licence area  Cont

  33. Slide 33: Mahale Exploration Project

    Mahale Exploration Project For personal use only 31

  34. Slide 34: WAG Farm-In Agreement

    WAG Farm-In Agreement For personal use only • Farm-in agreement with unlisted, Australian junior, West African Gold Ltd • Involves four highly prospective tenements located in Burkina Faso adjacent to the Houndé Fault zone and True Gold’s Karma Project • Commitment includes minimum spend of $250,000

  35. Slide 35: Conclusion

    Conclusion For personal use only Recent share price performance does not recognise underlying strength of business Management heavily focussed on matters within their control with the aim of restoring investor confidence Productivity improvement programmes in place to achieve this outcome Benefits o

  36. Slide 36: Contact

    Contact For personal use only ASX/TSX: www.perseusmining.com PRU Jeff Quartermaine Managing Director & CEO +61 8 6144 1700 Nathan Ryan Investor Relations (Australia) +61 420 582 887 34

  37. Slide 37: Attachments

    35 For personal use only Attachments

  38. Slide 38: Edikan Gold Mine Mineral Resources

    Edikan Gold Mine Mineral Resources (including Ore Reserves) For personal use only Weathering Domain Measured Indicated Inferred Tonnes g/t oz. Tonnes g/t oz. Tonnes g/t oz. (million) Au Au (million) Au Au (million) Au Au (,000) (,000) (,000) Oxides 0.220 1.5 10.6 0.600 0.8 16.0 2.763 1.2 102.7 Trans

  39. Slide 39: Edikan Gold Mine Ore Reserve

    Edikan Gold Mine Ore Reserve For personal use only Category Tonnes g/t Ounces (million) Au Au (,000) Proved 59.6 1.1 2,088.8 Probable 23.1 1.1 835.7 Total 82.7 1.1 2,924.5 Notes 1. Estimate as at 30 June 2013 2. Estimates has been rounded to reflect accuracy All estimates are on a dry tonne basis 37

  40. Slide 40: Edikan Pit Development Schedule

    Edikan Pit Development Schedule For personal use only AF Gap 1 Jul 13 1 Sep 19 Fobinso 1 Jul 13 1 Jun 16 Fetish 1 Dec 14 1 Oct 21 Esuajah North 1 Oct 15 1 Aug 20 Esuajah South 1 Aug 16 1 Apr 22 Chirewawa 1 Jul 15 1 Oct 18 Bokitsi 1 Jan 18 1 Jul 22 Jul 13 Jul 14 Jul 15 Jul 16 Jul 17 Jul 18 Jul 19 Jul

  41. Slide 41: Planning parameters

    Planning parameters For personal use only  Adopted revised technical parameters  Mining costs based on negotiated contract rates based on recent experience: adjusted for historic escalation (US$3.43/t LOM)  US$1,200/oz pit shells  Processing and G&A rates based on historic rates adjusted for one

  42. Slide 42: Mining Operations

    Mining Operations For personal use only Contract Mining performed by African Mining Services - a company with over 20yrs mining experience in Ghana. Responsible for all D&B, L&H, GC drilling, Crusher feed Fleet comprises, but significantly more equipment is immediately available locally, Cat 777 tru

  43. Slide 43: 2013 Calendar year - Ore Body Reconciliations

    2013 Calendar year - Ore Body Reconciliations For personal use only Grade Control drilling is done on an 10m by 10m grid pattern to a vertical depth of 20m. RC samples are collected at every 1m from a rig-mounted cyclone. Summary Reconciliation: Resource Vs. Ore Control - 2013 Resource Model Grade C

  44. Slide 44: Processing and Maintenance

    Processing and Maintenance For personal use only Flotation Primary crusher Tailings Flotation tailings storage facility Concentrate Coarse ore thickener stockpile Pebble crusher Regrind Gravity concentrator CIL CIL tailings storage facility SAG mill Elution Electrowinning Leach Reactor Gold room 42

Perseus Mining — Investor Presentation (February 2014) on 6ix