Slide 1: Review of September 2013 Quarter
For personal use only REVIEW OF S E P T E M B E R 2 0 1 3 Q UA RT E R Jeff Quartermaine Managing Director & CEO ASX/TSX: PRU www.perseusmining.com
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
Slide 3: Summary – Edikan Gold Mine (EGM) Operations, Ghana
Summary – Edikan Gold Mine (EGM) Operations, Ghana For personal use only • Gold production of 45,830oz in Quarter • Material improvements in availability and metallurgical performance of process plant • Total all-in site unit cash costs of US$1,342/oz¹ – 5% less than prior quarter • Business improve
Slide 4: Summary – Development, Exploration and Corporate
Summary – Development, Exploration and Corporate For personal use only • Discussions with Ivorian government on fiscal terms for new Mining Code advanced positively • Remain committed to decision to defer development pending assessment of potential of Mahalé prospect and improved market conditions •
Slide 5: Operations
Operations – Edikan Gold Mine For personal use only Parameter Unit June 2013 Quarter September 2013 Quarter Total material mined: Volume bcm1 3,097,974 2,562,917 Weight tonnes 7,794,700 6,960,972 Ore mined Oxide tonnes 227,787 42,178 Primary tonnes 1,494,354 1,747,590 Ore grade mined Oxide g/t Au2 0
Slide 6: Operations
Operations – Edikan Gold Mine For personal use only Parameter Unit June 2013 Quarter September 2013 Quarter Gold sales1 oz 52,626 49,069 Average sales price US$/oz 1,308 1,342 Unit Costs: Mining cost US$/t mined 3.42 4.16 Processing cost US$/t milled 14.42 11.61 G & A cost US$M/month 2.02 1.63 Produ
Slide 7: Mining
Mining – Edikan Gold Mine For personal use only • 2,562,917bcm ore and waste mined during Quarter, nearly 17% less than June 2013 quarter • Ore mined included 42,178t of oxide at 1.0g/t gold and 1,747,592t of transitional and primary at 1.0g/t gold • Total quantity of ore mined during Quarter increa
Slide 8: Processing
Processing – Edikan Gold Mine For personal use only Description Unit June 2013 September 2013 Quarter on Quarter Quarter Quarter Change Primary Crusher Tonnes Crushed1 Wmt1 1,158,829 1,577,104 +36% Availability % 79% 72% -9% Utilisation % 58% 77% +33% Runtime % 46% 56% +22% Run Time hrs 1,001 1,229
Slide 9: Processing
Processing – Edikan Gold Mine For personal use only • Positive trend of improving performance of SAG mill has continued into the December Quarter: As at 25 October 2013; Primary Crusher SAG Mill Run time 65% 88% Throughput rate 1,122wmtph 946 dmtph Gold recovery rate Not applicable 84.2%
Slide 10: Site Operating Costs
Site Operating Costs – Edikan Gold Mine For personal use only • Total all-in site cash costs of US$1,342/oz¹, 5% less than the prior quarter • Business improvement initiatives commenced targeting efficiency and cost improvements • Immediate impact for some initiatives. Further efficiency gains and c
Slide 11: Site Operating Costs
Site Operating Costs – Edikan Gold Mine For personal use only • $0.45/t or 60% of US$0.74/t increase in unit mining cost attributable to reduction of material moved • Remaining $0.29/t or 40% of increase can be attributed to: Increase in load and haul charges from adoption of haul rate calculator
Slide 12: Capital Costs
Capital Costs – Edikan Gold Mine For personal use only • US$99/oz spent on capital to sustain the EGM business Approximately 50% relate to payments for crop compensation and community costs committed in prior periods Remaining 50% to carry-over expenditure on maintenance, security and projects •
Slide 13: Ore Reserves
Ore Reserves – Edikan Gold Mine For personal use only • Independent estimate from mining consultant RungePincockMinarco • Ore Reserves from seven open pits: Abnabna, Fobinso, Fetish, Chirawewa, Bokitsi, Esuajah North and Esuajah South plus stockpiles • Gold metal price US$1,200/oz EGM Proved and Pro
Slide 14: Life of Mine Plan
Life of Mine Plan – Edikan Gold Mine For personal use only Parameter FY2014 FY2015 FY2016 FY2017 FY2018 LOMP Avg1,2 Ore mined (Mt) 5.3 7.7 9.7 9.4 7.4 8.7 Waste mined (Mt) 22.9 26.6 26.5 26.4 28.8 25.1 Strip ratio (t:t) 4.3 3.5 2.7 2.8 3.9 2.9 Ore processed (Mt) 7.5 7.4 7.5 7.5 7.5 7.5 Head grade (g
Slide 15: Life of Mine Plan Production
Life of Mine Plan Production – Edikan Gold Mine For personal use only Pit 2012 LOMP1,2 2013 LOMP1,3 Waste Ore (Mt) Grade Gold (koz) Strip Ratio Waste (Mt) Ore (Mt) Grade Gold Strip (Mt) (g/t) (g/t) (koz) Ratio AF Gap 78.1 29.9 1.1 1,021 2.6 63.4 27.5 1.1 953 2.3 Fobinso 40.1 11.5 1.2 429 3.5 30.6 9.
Slide 16: Life of Mine Plan Costs
Life of Mine Plan Costs – Edikan Gold Mine For personal use only US$/oz Cost FY2014 FY2015 FY2016 FY2017 FY2018 LOMP Avg Mining 479 481 474 551 486 410 Processing 344 282 291 293 276 297 General & Admin. 118 95 95 96 88 91 Sub-Total 941 858 860 940 850 798 Royalty 79 82 82 78 78 79 Sustaining Capita
Slide 17: Production and Cost Guidance FY2014
Production and Cost Guidance FY2014 – Edikan Gold Mine For personal use only • No change to expected production for 12-month period to 30 June 2014 but intra-year change reflecting detailed mine planning • Small increase in cost guidance reflecting timing of recognition of expected cost improvements
Slide 18: Project Development – Sissingué Gold Project, Côte d'Ivoire
Project Development – Sissingué Gold Project, Côte d’Ivoire For personal use only • Decision remains not to develop Sissingué until confident can finance project and generate acceptable return • Decision reviewed early 2014 Upcoming tasks in December 2013 quarter; 1. Discuss terms to be included in
Slide 19: Project Development – Sissingué Gold Project, Côte d'Ivoire
Project Development – Sissingué Gold Project, Côte d’Ivoire For personal use only
Slide 20: Exploration
Exploration For personal use only • Limited activity in Ghana. • 16,435 meters of drilling in Cote d’Ivoire on Mahalé, Mbengué and Napié prospects. • Further encouraging drilling results: Mbengué MKRC118 - 36m at 2.0g/t Au from 0m including 2m at 8.5g/t Au MKRC120 - 58m at 1.5g/t Au from 18m inclu
Slide 21: Corporate – Cash, Bullion and Available Credit
Corporate – Cash, Bullion and Available Credit For personal use only • Available cash balance as at 30 September 2013 was $23.1M (30 June 2013: $35.5M) • In addition, 2,922oz in process of being refined or in the Company’s metal account (30 June 2013: 5,407oz plus 4,452oz on hand) • Total value of c
Slide 22: Corporate – Gold Sales and Price Hedging
Corporate – Gold Sales and Price Hedging For personal use only • 23,000oz delivered into forward sales contracts at average price of US$1,255/oz. Remaining sold at spot prices • 49,069oz sold during the Quarter (June 2013 Quarter: 52,626oz) at weighted average price of US$1,342/oz • 147,000oz delive
Slide 23: Corporate – VAT Receivable
Corporate – VAT Receivable For personal use only • Company filed claims with Ghanaian government for refund of GHC86.4M (US$39.2M) of VAT paid since start of commercial production on 1 January 2012 • GHC3.0M received leaving a claim balance of GHC83.4M (US$37.8M) • Company exploring ways to monetise
Slide 24: December 2013 Quarter Program
December 2013 Quarter Program For personal use only Edikan Gold Mine • Produce 45-55,000oz at all-in site cash cost of US$1,050/oz to US$1,250/oz in line with Half Year guidance • Continue to fine tune plant metallurgical performance and maximise SAG mill throughput • Continue training of operating
Slide 25: Contact Details
Contact Details For personal use only Jeff Quartermaine Managing Director & CEO +61 8 6144 1700 ASX/TSX: PRU Nathan Ryan Investor Relations (Australia) www.perseusmining.com +61 420 582 887 Rebecca Greco Investor Relations (Canada) +1 416 822 6483