Gold miner Perseus could pay bonus shareholder returns next month after smashing full-year production targets, almost doubling its cash reserves and deferring one of its major spending options because of an African civil war.
Perseus’ three mines in Ghana and Cote D’Ivoire produced 538,642 ounces of gold in the year to June 30; 9 per cent better than the previous year and 2 per cent better than the top end of the company’s target range.
“What we would ideally like to do is to be able to acquire an alternative project to Sudan, put that into production and then go back to Sudan,” Perseus boss Jeff Quartermaine said. Pictured, Khartoum. AP
The strong production result coincided with a 7 per cent rise in the gold price over the past year, enabling Perseus to grow its cash and bullion war chest by 88 per cent to $US522 million ($771 million).
After five years of consistent growth, Perseus has no debt and will soon become a top three gold miner on the ASX by market capitalisation when Newmont completes the acquisition of the biggest local gold miner, Newcrest.
A big portion of Perseus’ $US552 million treasury was expected to be spent on construction of the company’s next mine in Sudan. The Sudanese project “Meyas Sands” was expected to cost at least $US321 million according to a feasibility study published in 2020 by its former owner, Canadian company Orca Gold.
But Perseus won’t be taking an investment decision on Meyas Sands this year as previously planned. The project, located 900 kilometres north of the war torn Sudanese capital Khartoum, is now firmly on the backburner, barely a year after Perseus acquired it.
Perseus managing director Jeff Quartermaine said some critics of the Sudanese acquisition may feel vindicated by
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