Perseus Mining Limited · ASX:PRU
Perseus Mining — Shareholder Meeting (November 2013)
26 slides from Perseus Mining's shareholder meeting presentation, Nov 18, 2013
Slide 1: Annual General Meeting 15 November 2013
For personal use only ANNUAL GENERAL MEETING 15 NOVEMBER 2013 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 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 Sissingue Gold Mine in Côte d’Ivoire ready for development Strong, debt fre
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 BURKINA FASO Ghana Ghana Côte d’Ivoire Sissingué GUINEA SIERRA GHANA LEONE CÔTE D'IVOIRE LIBERIA 170Moz Edikan
Slide 5: 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)
Slide 6: Key investment parameters
Key investment parameters For personal use only 457.96m outstanding ordinary shares Major Shareholders* 462.79m shares fully diluted Van Eck Global Goodman & CO (GCIC) Approx. A$178m market capitalisation Paradice Investment Management BT Investment Management Approx. A$154 enterprise value
Slide 7: FY2013 financial highlights
FY2013 financial highlights For personal use only 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 prod
Slide 8: Current State of Play - Share Price Performance
Current State of Play - Share Price Performance For personal use only Volume Price Gold (Indexed) $5.00 18 Releases re-optimised Edikan Exploration permit received for mine plan significantly improving Announces C$94 mm capital raising (including over-allotment) Sissingué project economics $4.50 Add
Slide 9: 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
Slide 10: 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
Slide 11: 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
Slide 12: 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
Slide 13: Revised Life of Mine Plan
Revised Life of Mine Plan For personal use only Revised Plan based on US$1,200/oz pit shells Results in: Tonnes of ore and waste moved Down 15% Life of mine strip ratio Down 16% Contained gold in Ore Reserve Down 6% Life of mine Increased to 2024 FY2014 – plan unchanged FY2015-FY2018
Slide 14: Life of Mine Plan – Production Profile
Life of Mine Plan – Production Profile For personal use only Parameter FY2014 FY2015 FY2016 FY2017 FY2018 LOM Average Ore mined (Mt) 5.3 7.7 9.7 9.4 7.4 8.7 Waste mined (Mt) 22.9 26.6 26.5 26.4 28.8 25.1 Strip ratio (t:t) 4.3 3.5 2.7 2.8 3.9 2.9 Ore processed (Mt) 7.5 7.4 7.5 7.5 7.5 7.5 Head grade
Slide 15: Life of Mine Plan – Operating and Capital Costs
Life of Mine Plan – Operating and Capital Costs For personal use only US$ 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
Slide 16: Focus on process improvement
Focus on process improvement 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 changes in mine manag
Slide 17: 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
Slide 18: 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 January 2014 at earliest Siss
Slide 19: Sissingué Gold Mine
Sissingué Gold Mine Development: For personal use only 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
Slide 20: Mahale Exploration Project
Mahale Exploration Project For personal use only
Slide 21: 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 s
Slide 22: 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 Rebecca Greco Investor Relations (Canada) +1 416 822 6483
Slide 23: Mineral Resources (including Ore Reserves)
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 Transition 0.764 1.1 2
Slide 24: 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
Slide 25: 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
Slide 26: 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