June 2018 Quarter Activities Report & conservative December 2018 half year production and cost guidance: Perseus Mining Limited’s (ASX: PRU) stock plunged 5.3% on July 13, 2018 after the company posted the Activity Report for June 2018 Quarter. The company in the June quarter has successfully completed the ramp up of Sissingué and achieved quarterly gold production of 26,020 ounces at an AISC of US$520 per ounce. During the quarter, the company has achieved the average gold price of US$1,312 per ounce, produced a cash margin of US$399 per ounce or US$33.4 million of notional free cash flow from operations. PRU has reported 51% increase in cash and bullion to A$30.3 million during the quarter, which resulted in available cash and bullion at June 30, 2018 of A$89.8 million (US$66.5 million), $4.8 million (US$3.5 million) more than group debt of A$85 million (US$63 million). PRU group’s hedge position at June 30, 2018 included 131,000 ounces of gold sold forward at a weighted average price of US$1,312 per ounce. Moreover, for the December 2018 half year, the Group gold production and cost are expected to be in the range of 130,000 to 150,000 ounces of gold at an AISC of US$950 to US$1,150 per ounce (taking yearly level to slightly on a higher side). However, PRU is yet to process the harder ore types at Sissingué and therefore recoveries and throughput rates for these ores are yet to be confirmed and certain assumptions regarding the potential impact of weather on operating performance also remain to be validated. Additionally, during the June quarter, PRU has commenced work on front end engineering and design (“FEED”) and execution planning for the Yaouré development in conjunction with engineers Lycopodium. The company has also commenced implementation of a plan to fund the Yaouré development using debt and internally generated cash reserves. Further, PRU has achieved encouraging drill results from exploration drilling programmes at each of the Yaouré, Sissingué and Edikan sites warranting follow up drilling in the September 2018 quarter. Meanwhile, PRU stock has fallen 3.06% in three months as on July 12, 2018.
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