Slide 1: Investor Overview & Update
For personal use only I N V E S TO R OV E RV I E W & U P DAT E 13-15 August 2014 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: Perseus in a snapshot
Perseus in a snapshot For personal use only West African focused ASX/TSX listed gold explorer, developer and producer Highly motivated to deliver improved total shareholder returns Currently producing ~200,000oz gold pa with projected organic growth in production and cashflows Debt free bala
Slide 4: Perseus's West African Projects
Perseus’s West African Projects For personal use only Mauritania Mali Niger Senegal Burkina MALI Guinea 70Moz Faso Benin Nigeria Togo B U R K I NA FA S O Ghana Ghana Côte d’Ivoire Sissingué GUINEA SIERRA GHANA LEONE CÔTE D'IVOIRE LIBERIA 170Moz Edikan 2
Slide 5: Group Mineral Resources and Reserves
Group Mineral Resources and Reserves* For personal use only 7.1Moz of Gold in Measured & Indicated Mineral Resources (87% in Ghana) (207Mt at 1.1g/t) INCLUDING PLUS 3.8Moz 3.0Moz (82% in Ghana) (90% in Ghana) of Gold in Proven & Probable Reserves Gold in Inferred Mineral Resources (97Mt at 1.2g/t) (
Slide 6: Financial Position at June 2014
Financial Position at 30 June 2014 For personal use only Available cash and bullion on hand of A$48.7M Company debt free Hedge position of 125,000oz of gold <(5% of Ore Reserves) hedged at US$1,468/oz to Dec 2015 valued at US$19.0M VAT receivable owing from Ghanaian Government reduced materi
Slide 7: Key investment parameters
Key investment parameters For personal use only 526.66m outstanding ordinary shares 534.64m shares fully diluted Share ownership spread between Australia (~45%), US & Canada (~42%, Europe (~10%), Asia(~3%) High quality share register with top 25 investors owning ~51% of issued capital Aver
Slide 8: Corporate Plan
Corporate Plan For personal use only • Objective is to maximise total shareholder returns • Strategy is to organically grow cash flows through successful exploration, effective development and efficient operation of multiple gold mines in diverse geopolitical settings within West Africa • Key short
Slide 9: Edikan Performance Improvement
Edikan Performance Improvement For personal use only 7
Slide 10: 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 Mampong Dadieso 8
Slide 11: Edikan Performance Improvement
Edikan Performance Improvement For personal use only Gold production is a function of: Unit costs are a function of: • Mill throughput rate • Cost Base including: Mining (55%) • Mill run time Processing (35%) and G&A (10%) • Mill feed grade • Production rates including • Gold Recovery Tonnes mined T
Slide 12: Production Performance - Processing: Mill Run Time
Production Performance - Processing For personal use only June 2014 Quarter Mill Run Time 100.0 • Run time affected by: 90.0 (i) 7-day production loss (fire) 80.0 (ii) 3-day production loss (CT failure – Gridco yard) 70.0 SAG mill run time, % 60.0 • Underlying positive trend - 50.0 91% excluding tim
Slide 13: Production Performance - Processing: Mill Feed Rate
Production Performance - Processing For personal use only June 2014 Quarter Mill Feed Rate 1000 • Mill feed rate affected by 950 GRIDCO load shedding requirements 900 850 • Mill feed rate limited by SAG SAG mill feed rate, t/h 800 mill discharge screen capacity 750 (problem since solved) 700 • Targe
Slide 14: Production Performance - Processing: Head Grade
Production Performance - Processing For personal use only June 2014 Quarter Head Grade 1.80 • Mill feed grade improved in line 1.70 with expectations 1.60 1.50 • Significant improvement in mined 1.40 grade but need to blend with low grade stockpiles Head Grade, g/t 1.30 1.20 • Working on minimising
Slide 15: Production Performance - Processing: Gold Recovery
Production Performance - Processing For personal use only June 2014 Quarter Gold Recovery • Recovery steadily improving – 100.0 gravity +2.8%, flotation +2.1%, 95.0 CIL steady 90.0 • Some changes to usage of Gold recovery, % consumables - copper sulphate 85.0 addition and collector increased 80.0 •
Slide 16: Cost Performance - Mining
Cost Performance - Mining For personal use only • Key to improving Edikan’s all-in site unit cost is materially reducing mining costs • Existing mining contract expires in May 2016 but may be terminated earlier. Have reduced material movements and shifts worked in FY2015 • Currently examining pros a
Slide 17: Cost Performance - Processing
Cost Performance - Processing For personal use only • Processing cost increases in June 2014 Quarter mainly the result of higher than expected maintenance costs including fire damage repair • Improvements are available through tighter cost control e.g. reduce use of contractors, cranes and maintenan
Slide 18: Re-optimising Mine Plans
Re-optimising Mine Plans For personal use only • Aim is to maximise the net present value of cash flows from operations • Finalising re-estimate of Edikan Mineral Resources taking into account, mining diminution, recent drilling and revised assumptions • Updated Mineral Resource used for pit re-opti
Slide 19: FY2015 Guidance
FY2015 Guidance For personal use only Parameter Units December 2014 June 2015 2015 Half Year Half Year Financial Year Gold Production Ounces 95,000-105,000 115,000-125,000 210,000-230,000 All-In Site Costs* US$/oz 1,160-1,280 1,050-1,150 1,100-1,200 * All-in site costs includes production cost + roy
Slide 20: Near mine exploration programmes
Near mine exploration programmes For personal use only 18
Slide 21: Near mine exploration programmes
Near mine exploration programmes For personal use only • Near mine exploration programmes targeting higher grade mineralisation to become mill feed in the short to medium term • Immediate success at the Bokitsi deposit • Drilling completed at Pokokrum where small deposits have been located – warrant
Slide 22: Bokitsi South Vertical Longitudinal Section
Bokitsi South Vertical Longitudinal Section For personal use only 20
Slide 23: Enhancements to onsite management team
Enhancements to onsite management team For personal use only • Effective management team, a critical success factor for Edikan • John Seaward appointed as Executive General Manager at Edikan o Seasoned mining professional who has worked for corporates and mining contractors in West Africa o Formerly
Slide 24: Sissingué Gold Mine Development
Sissingué Gold Mine Development For personal use only • Sissingué Gold Mine development proposal expected to be complete in January 2015 • Aim to maximise project NPV. Proposal likely to involve changes to project scale and capital cost • Completed re-assessment of project metallurgy with positive r
Slide 25: Sissingué Gold Mine development
Sissingué Gold Mine development For personal use only • Conducting regional exploration with the aim of identifying additional mill feed to extend LoM beyond current Reserve • Encouraging results at the Bélé deposit on the Mahalé tenement, 30Kms from Sissingué. • Further work required to delineate M
Slide 26: CIV – Regional Exploration (Bélé)
CIV – Regional Exploration (Bélé) For personal use only 24
Slide 27: Conclusion
Conclusion For personal use only Perseus focussed on matters within its control with the aim of restoring investor confidence • Foundation established at Edikan from which to leverage future organic growth in earnings • Productivity improvement programmes at Edikan generating tangible results • Oppo
Slide 28: Contact
Contact For personal use only ASX/TSX: PRU www.perseusmining.com Jeff Quartermaine Managing Director & CEO +61 8 6144 1700 Nathan Ryan Investor Relations (Australia) +61 420 582 887 34