Perseus profit down, revenue up

Subiaco-based gold miner Perseus Mining has posted a fall in half-year profit to $12 million on the back of the weaker Australian dollar, but grew revenue by 5 per cent.

In the six months to December, Perseus increased revenue to $149.1 million, while its cash balance surged by 119 per cent to $94.6 million.

However, profit was down by $29.2 million compared with the previous corresponding period, which the company said was mainly due to a $21.2 million decrease in foreign exchange gain on the translation of inter-company loans as a result of the weaker $A.

Perseus also recorded material cost reductions at its Edikan gold mine in Ghana, which it says has positioned the company well heading into a waste stripping exercise to open up new pits on the eastern side of its mining lease.

“A 137 per cent increase in total material moved, compared to HY14, translated into only a 15 per cent increase in total costs comparatively,” the company said in a statement.

“With the operation returning to average stripping ratio’s towards the end of the half-year and access gained to higher grade fresh ore supplies, production for the remainder of the financial year is expected to increase.”

Perseus produced 76,693 ounces in the half-year at an average all-in sustaining cost of $US1,208 per ounce.

Managing director Jeff Quartermaine said favourable foreign exchange movements improved Perseus’s HY15 profit result in AUD terms.

“But significant cost savings and productivity gains underpin the performance as does a prudent approach to gold price risk management which has delivered an average gold price of $US1,280/oz in a falling gold market,” he said.

“Our debt-free working capital base of $165 million has placed us in a strong position relative to many in our sector to deliver strong growth in total shareholder returns notwithstanding the volatile market conditions in which we are currently operating.”

Perseus shares were 1.4 per cent lower to 35 cents each at the close.