Perseus Mining Limited · ASX:PRU
Perseus Mining — Denver Gold Forum 2013
25 slides from Perseus Mining's conference presentation, 2013
Slide 1: Denver Gold Forum 2013
DENVER GOLD FORUM 2013 Jeff Quartermaine Managing Director & CEO ASX/TSX: PRU www.perseusmining.com
Slide 2: Cautionary Statements
Cautionary Statements 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 developments, as well as o
Slide 3: Perseus in a snapshot
Perseus in a snapshot ASX/TSX listed gold explorer, developer and producer West African based - Ghana and Côte d’Ivoire Edikan Gold Mine in Ghana been operating commercially since January 2012 Sissingué Gold Mine in Côte d’Ivoire ready for development Strong, debt free, balance sheet Cas
Slide 4: Mineral Resources and Reserves
Mineral Resources and Reserves 7.1Moz of Measured & Indicated Mineral Resources (87% in Ghana) (187Mt at 1.1g/t) INCLUDING PLUS 3.8Moz 3.0Moz (83% in Ghana) (90% in Ghana) of Proven & Probable Reserves of Inferred Mineral Resources (97Mt at 1.2g/t) (101Mt at 1.1g/t)
Slide 5: Perseus's West African Projects
Perseus’s West African Projects Mauritania Mali Niger Senegal Burkina MALI Guinea 70Moz Faso Benin 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
Slide 6: Key investment parameters
Key investment parameters 457.96m outstanding ordinary shares Major Shareholders: 462.79m shares fully diluted Van Eck Global 11.1% Goodman & CO (GCIC) 9.7% Approx. A$275m market capitalisation State Street Global Advisors 5.0% Paradice Investment Management 3.1% Approx. A$230m enterprise va
Slide 7: FY2013 financial highlights
FY2013 financial highlights NPAT of A$41.4M or 9.0 cps Operating cash flow of A$46.7M or 10.2cps Return on equity of 8.0% Cash, bullion and investments of A$45.3M Company debt free <5% of Ore Reserves hedged at an average price of US$1,408/oz to Dec 2015 Gold production of 208,444oz at
Slide 8: Near term plan
Near term plan Revised short-term production plans for EGM developed in response to weaker gold price environment Plan was adopted to minimise capital investment and to maximise cash inflow without compromising the future prospects of the mine Production and cost guidance targets for the next
Slide 9: Current state of play.....
Current state of play..... 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 operational performance is wit
Slide 10: Four point plan to improve performance
Four point plan to improve performance 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
Slide 11: Optimised Edikan Life of Mine Plan
Optimised Edikan Life of Mine Plan…. Revised Mineral Resource estimate at 30 June 2013 used as basis for optimised plan Mine design philosophy includes: Minimising investment in FY2014 without compromising future Resuming development of Eastern Pits from July 2014 Including new pits not previo
Slide 12: Mine planning parameters
Mine planning parameters Revision to Mine Plan results in: Adopted revised technical parameters based on recent experience: Tonnes of ore and waste moved Down 15% US$1,200/oz pit shells Life of mine strip ratio Down 16% Contained gold in Ore Reserve Down 6% Revised mining and processing cos
Slide 13: Edikan Site Layout
Edikan Site Layout Reserves 5km radius Esuajah Resources Esuajah North Abnabna South Current production pits Fobinso MILL SITE Fetish Bokitsi Chirawewa Mampon Dadieso
Slide 14: Edikan Pit Development Schedule
Edikan Pit Development Schedule 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 20 Jul 21 Jul 22
Slide 15: Life of Mine Plan
Life of Mine Plan Parameter FY201 FY2015 FY201 FY2017 FY201 LOM 4 6 8 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 (g/t) gold 1.0 1.2 1.2 1.1 1.2 1.1 Gold
Slide 16: Comparison to previous life of mine plans
Comparison to previous life of mine plans Pit 2012 LOMP1,2,3 (Updated) 2013 LOMP1,4 Waste (Mt) Ore Grade Gold Strip Ratio Waste (Mt) Ore (Mt) Grade (g/t) Gold Strip Ratio (Mt) (g/t) (koz) (t:t) (koz) (t:t) AF Gap 78.1 29.8 1.1 1,015 2.6 63.4 27.5 1.1 954 2.8 Fobinso 40.1 11.5 1.2 429 3.5 30.6 9.3 1.
Slide 17: Focus on process improvement
Focus on process improvement 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 Made key personnel changes in mine management, processing
Slide 18: Focus on controlling unit cash costs
Focus on controlling unit cash costs 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 Restructuring of rosters
Slide 19: Focus on deployment of capital
Focus on deployment of capital 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 January 2014 at earliest Sissingué capital budget u
Slide 20: Sissingué Gold Mine Development
Sissingué Gold Mine Development: Deferred development decision until January 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 Continuing discussions
Slide 21: Conclusion
Conclusion 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 will start to emerge in
Slide 22: Contact
Contact ASX/TSX:PRU www.perseusmining.com Jeff Quartermaine Managing Director & CEO +61 8 6144 1700 Nathan Ryan Investor Relations (Australia) +61 420 582 887 Rebecca Greco Investor Relations (Canada) +1 416 822 6483
Slide 23: Denver Gold Forum 2013
DENVER GOLD FORUM 2013 Jeff Quartermaine Managing Director & CEO ASX/TSX: PRU www.perseusmining.com
Slide 24: Mineral Resources (including Mineral Reserves)
Mineral Resources (including Mineral Reserves) Measured Indicated Inferred Deposit Tonnes g/t oz. Tonnes g/t oz. Tonnes g/t oz. (cut-off g/t Au) (million) Au Au (million) Au Au (million) Au Au (,000) (,000) (,000) Edikan Gold Mine1 82.2 1.1 2,957 80.3 1.1 2,739 77.4 1.0 2,430 >0.4g/t gold Grumesa Go
Slide 25: Mineral Reserves
Mineral Reserves Mineral Reserves (Gold) Deposit Proven Probable Total Tonnes g/t Ounces Tonnes g/t Ounces Tonnes g/t Ounces (million Au Au (million Au Au (million) Au Au ) (,000) ) (,000) (,000) Edikan Gold Mine 59.0 1.2 2,213 27.9 1.0 896 86.9 1.1 3,109 >0.4g/t 1,2,3 Sissingué Gold - - - 9.7 2.1 6