MARCH 2024 QUARTER REPORT Perseus Mining Delivers Another Impressive Quarter
24 APRIL 2024
NEWS RELEASE
MARCH 2024 QUARTER REPORT
Perseus Mining Delivers Another Impressive Quarter
PERTH, Western Australia/ April 24, 2024/Perseus Mining Limited (“Perseus” or the “Company”) (TSX & ASX: PRU) reports on its activities for the three months’ period ended March 31, 2024 (the “Quarter”).
- Key operating indicators and highlights for the March 2024 quarter include:
| PERFORMANCE | SEPTEMBER 2023 | DECEMBER 2023 | MARCH 2024 | FINANCIAL YEAR (FY) 2024 | |
|---|---|---|---|---|---|
| UNIT | |||||
| INDICATOR | QUARTER | QUARTER | QUARTER | TO DATE | |
| Gold recovered Ounces 132,804 128,773 | 127,471 | 389,048 | |||
| Gold poured Ounces 132,717 128,339 | 128,356 | 389,412 | |||
| Production Cost US$/ounce 805 862 | 923 | 862 | |||
| All-In Site Cost (AISC) US$/ounce 937 1,023 | 1,091 | 1,016 | |||
| Gold sales Ounces 115,954 135,137 | 115,648 | 366,739 | |||
| Average sales price US$/ounce 1,936 1,963 | 2,025 | 1,974 | |||
| Notional Cashflow US$ million 132 122 | 119 | 373 |
- Gold production of 127,471 ounces in the March 2024 quarter, with financial year to date gold production of 389,048 ounces.
- March 2024 quarter weighted average AISC of US$1,091 per ounce, slightly above the prior quarter, as foreshadowed last quarter.
- Perseus’s strong operating performance is expected to continue for the remainder of the June 2024 Half Year with gold production and AISC guidance unchanged at 226,000-254,000 ounces at an AISC of US$1,180 to US$1,340.
- Average gold sales price increased 3% quarter on quarter to US$2,025 per ounce, while the quantity of gold sold reduced to 115,648 ounces due to the timing of gold shipments and sales.
- Average quarterly cash margin of US$934 per ounce of gold resulted in notional operating cashflow of US$119 million in the quarter or US$373 million for the nine-month period to 31 March 2024.
- Available cash and bullion balance of US$702 million, plus US$74 million of listed securities at quarter-end. Zero debt and US$300 million of undrawn debt capacity available.
- Group 12-month rolling average TRIFR at 1.02, slightly up from 0.89 in the December 2023 quarter.
- A Cooperation Agreement was signed with Ajlan & Bros Mining & Metals Company, the mining division of a Kingdom of Saudi Arabia based investment conglomerate company, Ajlan & Bros, to investigate exploration and development opportunities on the Nubian and Arabian Shield regions.
- Perseus’s takeover offer for OreCorp Limited advanced materially during the quarter with the OreCorp Board endorsing the offer. Subsequent to quarter end, Perseus’s ownership of OreCorp advanced beyond 90% enabling compulsory acquisition of outstanding shares to begin.
PERSEUS MINING LIMITED
Level 2, 437 Roberts Road, Subiaco WA 6008 ABN: 27 106 808 986 PERSEUSMINING.COM
OPERATIONS
PRODUCTION, COSTS AND NOTIONAL CASHFLOW
Perseus’s three operating gold mines, Yaouré and Sissingué in Côte d’Ivoire, and Edikan in Ghana, combined to produce a total of 127,471 ounces of gold in the March 2024 quarter. The weighted average production cost at the operations was US$923 per ounce, while the weighted average AISC was US$1,091 per ounce of gold for the quarter.
In the March 2024 quarter, combined gold sales from all three operations totalled 115,648 ounces or 19,489 ounces less than in the December 2023 quarter, due to the timing of gold sales. The weighted average gold price realised was US$2,025 per ounce, US$62 per ounce more than the December 2023 quarter price of US$1,963 per ounce.
Perseus’s average cash margin for the March 2024 quarter was US$934 per ounce resulting in notional operating cashflow from operations of US$119 million, US$3 million less than the December quarter. This slight decrease was driven by higher AISC, particularly at Yaouré, where increased material movements from the open pit increased unit costs per ounce.
These strong operating results, summarised in Tables 1 to 3 below, confirm Perseus’s position as one of the world’s better performing mid-tier gold producers in 2024.
Table 1: Gold Production by Mine
| MINE | TOTAL GOLD RECOVERED (OUNCES) | TOTAL GOLD POURED (OUNCES) | ||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| SEPTEMBER | DECEMBER | 2 | MARCH | FY 2024 | 2 | SEPTEMBER | 2 | DECEMBER 023 QUARTER | MARCH 2024 QUARTER | FY 2024 TO DATE | ||||
| 2023 QUARTER | 2023 QUARTER | 024 QUARTER | TO DATE | 023 QUARTER | ||||||||||
| Yaouré Edikan Sissingué | 73,737 60,642 48,497 50,150 10,570 17,981 | 61,283 | 195,662 | 73,801 | 61,610 | 197,328 147,197 44,886 | ||||||||
| 49,096 | 147,743 | 47,882 | 49,389 | |||||||||||
| 17,092 | 45,643 | 17,357 | ||||||||||||
| G | roup | 132,804 | 128,773 | 127,471 | 389,048 | 132,717 | 128,339 | 128,356 | 389,412 |
Table 2: Gold Sales by Mine
| MINE | TOTAL GOLD SOLD (OUNCES) | REALISED GOLD PRICE (US$ PER OUNCE) | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| SEPTEMBER | DECEMBER | MARCH | FY 2024 | 2 | SEPTEMBER | 2 | DECEMBER 023 QUARTER | MARCH 2024 QUARTER | FY 2024 TO DATE | ||||
| 2023 QUARTER | 2023 QUARTER | 2024 QUARTER | TO DATE | 023 QUARTER | |||||||||
| Yaouré Edikan Sissingué | 65,197 67,491 44,209 50,074 6,548 17,572 | 56,021 | 188,709 141,047 36,983 | 1,949 1,955 1,910 1,954 1,974 2,019 | 2,009 | 1,969 1,967 2,023 | |||||||
| 46,764 | 2,036 | ||||||||||||
| 12,863 | 2,052 | ||||||||||||
| G | roup | 115,954 | 135,137 | 115,648 | 366,739 | 1,936 | 1,963 | 2,025 | 1,974 |
Table 3: All-In Site Costs (AISC) and Notional Cash Flow by Mine
| MINE | ALL-IN SITE COST (US$/OUNCE) | NOTIONAL CASHFLOW FROM OPERATIONS (US$ MILLION) | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| SEPTEMBER | DECEMBER | MARCH | FY 2024 | SEPTEMBER | DECEMBER 2023 QUARTER | MARCH 2024 QUARTER | FY 2024 TO DATE | |||||
| 2023 QUARTER | 2023 QUARTER | 2024 QUARTER | TO DATE | 2023 QUARTER | ||||||||
| Yaouré Edikan Sissingué | 677 960 1,078 930 2,095 1,498 | 1,025 | 874 996 1,685 | 93 61 40 51 (1) 9 | 60 | 214 143 15 | ||||||
| 982 | 52 | |||||||||||
| 1,628 | 7 | |||||||||||
| G | roup | 937 | 1,023 | 1,091 | 1,016 | 132 | 122 | 119 | 373 |
Note: Numbers reported in Tables 1 to 3 are rounded to zero decimal places
Figure 1: Growth in gold production at attractive cash margins
YAOURÉ GOLD MINE, CÔTE D’IVOIRE
During the quarter, Yaouré produced 61,283 ounces of gold at a production cost of US$874 per ounce and an AISC of US$1,025 per ounce. The weighted average sales price of the 56,021 ounces of gold sold during the quarter was US$2,009 per ounce, giving rise to a cash margin of US$984 per ounce. Notional operating cashflow generated during the quarter by Yaouré was US$60 million, in line with US$61 million produced in the December quarter.
Refer to Table 4 below for details of operating and financial parameters recorded at the Yaouré gold mine during the period ending 31 March 2024 and relevant prior periods.
Table 4: Yaouré Quarterly Performance
| PARAMETER | UNIT | SEPTEMBER 2023 | DECEMBER 2023 | DECEMBER 2023 | MARCH 2024 | FY 2024 |
|---|---|---|---|---|---|---|
| QUARTER | QUARTER | HALF YEAR | QUARTER | TO DATE | ||
| Gold Production & Sales | ||||||
| Total material mined Tonnes 7,454,464 8,672,230 16,126,694 | 9,578,098 | 25,704,792 | ||||
| Total ore mined Tonnes 1,510,898 1,361,286 2,872,184 | 1,363,256 | 4,235,440 | ||||
| Average ore grade g/t gold 1.81 1.64 1.73 | 1.67 | 1.71 | ||||
| Strip ratio t:t 3.9 5.4 4.6 | 6.0 | 5.1 | ||||
| Ore milled Tonnes 993,073 892,728 1,885,801 | 943,796 | 2,829,597 | ||||
| Milled head grade g/t gold 2.48 2.27 2.38 | 2.17 | 2.31 | ||||
| Gold recovery % 93.1 93.0 93.0 | 93.2 | 93.1 | ||||
| Gold produced ounces 73,737 60,642 134,379 | 61,283 | 195,662 | ||||
| Gold sales1 ounces 65,197 67,491 132,688 | 56,021 | 188,709 | ||||
| Average sales price US$/ounce 1,949 1,955 1,952 | 2,009 | 1,969 | ||||
| Unit Production Costs | ||||||
| Mining cost US$/t mined 3.00 3.24 3.13 | 3.37 | 3.22 | ||||
| Processing cost US$/t milled 12.66 14.56 13.56 | 15.09 | 14.07 | ||||
| G & A cost US$M/month 2.30 2.38 2.34 | 2.31 | 2.33 | ||||
| All-In Site Cost | ||||||
| Production cost US$/ounce 568 794 670 | 874 | 734 | ||||
| Royalties US$/ounce 85 138 109 | 115 | 111 | ||||
| Sub-total US$/ounce 652 933 779 | 989 | 845 | ||||
| Sustaining capital US$/ounce 25 27 26 | 36 | 29 | ||||
| Total All-In Site Cost2 US$/ounce 677 960 805 | 1,025 | 874 | ||||
| Notional Cashflow from Operations | ||||||
| Cash Margin US$/ounce 1,272 995 1,147 | 984 | 1,095 | ||||
| Notional Cash Flow US$M 93 61 154 | 60 | 214 |
Notes:
1. Gold sales are recognised in Perseus’s accounts when gold is delivered to the customer from Perseus’s metal account
2. Included in the AISC for the quarter is US$8 million of costs relating to excess waste stripping. When reporting cost of sales, in line with accepted practice under IFRS, this cost will be capitalised, and the costs amortised over the remainder of the relevant pit life.
The operating performance at Yaouré during the March 2024 quarter, was generally consistent with that of the prior quarter with only minor variations in key KPIs. The head grade of processed ore was down quarter on quarter by 4.4% quarter on quarter to 2.17g/t gold, mill run time of 91.9% compared positively to 87.7% in the prior quarter, gold recovery rates of 93.2% compared to 93.0%, and throughput rates of 470 tph compared to 461 tph.
As previously reported, wet weather in the September 2023 quarter materially reduced ore and waste movements relative to targets in this period, delaying access to higher grade ore scheduled for mining in the December quarter and again in the March 2024 quarter. An accelerated mining programme was implemented in the December quarter, once weather improved, and this has continued in the March 2024 quarter with the cooperation of Perseus’s mining contractor. The accelerated mining programme is expected to continue until mid-year at which time material movements are expected to return to plan.
The increase in material movements during the quarter negatively impacted AISC as predicted in the December 2023 Quarterly Report. It is expected that this trend of elevated AISC will continue for the balance of this financial year as the mining shortfall incurred in prior periods is eliminated and work to plan is restored.
MINERAL RESOURCE TO MILL RECONCILIATION
Table 5 shows the reconciliation of processed ore tonnes, grade and contained gold relative to the Yaouré Mineral Resource block model. During the last quarter, 29% more ore tonnes were processed at 11% lower grade for 15% positive variance in ounces compared to the Mineral Resource model. In the previous six months and project to date, Yaouré has produced more metal than the Mineral Resource model predicted. The performance of the Yaouré Mineral Resource model to date is considered satisfactory, however work will continue to minimise ore dilution and maximising ore deliveries.
Table 5: Yaouré Block Model to Mill Reconciliation
| BLOCK MODEL TO MILL CORRELATION FACTOR | |||
|---|---|---|---|
| PARAMETER | |||
| 3 MONTHS | 6 MONTHS | PROJECT TO DATE | |
| Tonnes of Ore | 1.29 | 1.17 1.20 | |
| Head Grade | 0.89 | 0.88 0.92 | |
| Contained Gold | 1.15 | 1.03 1.11 |
EDIKAN GOLD MINE, GHANA
Edikan’s operating performance in the March 2024 quarter was in line with the prior quarter, with 49,096 ounces of gold recovered at a production cost of US$788 per ounce and an AISC of US$982 per ounce (compared to 50,150 ounces at an AISC of US$930 per ounce in the December quarter). Gold sales of 46,764 ounces were 7% less than in the prior quarter, at a weighted average realised gold price of US$2,036 per ounce, generating an average cash margin of US$1,054 per ounce. Notional cashflow of US$51 million for the quarter was exactly in line with the December quarter.
Operating performance at Edikan was generated by sound operating fundamentals generally in line with the prior quarter. Mill run time was 91.1% compared to 95.2%, reflecting the timing of a major mill reline. Gold recovery rates were 92.2% compared to 91.7%, head grade of processed ore was 1.07 g/t gold compared to 1.08 g/t gold and throughput rates 781 tph compared to 749 tph. All in all, another very sound operating result was achieved at the Edikan Gold Mine during the quarter.
Table 6 below summarises the key operating and financial parameters recorded at Edikan during the period ending 31 March 2024 and relevant prior periods.
MINERAL RESOURCE TO MILL RECONCILIATION
Reconciliation of processed ore tonnes, grade and contained ounces relative to the Edikan Mineral Resource block model is in Table 7 below.
During the quarter, grade control has predicted similar tonnes, with a higher grade (+12%) and more ounces (+12%) when compared to the Mineral Resource Estimate (MRE). Over the last six and 12-month periods, Edikan has also recorded more contained metal than predicted by the MRE model. Perseus regards the overall outperformance as being acceptable relative to normal industry standards.
Table 6: Edikan Quarterly Performance
| PARAMETER | UNIT | SEPTEMBER 2023 | DECEMBER 2023 | DECEMBER 2023 | MARCH 2024 | FY 2024 |
|---|---|---|---|---|---|---|
| QUARTER | QUARTER | HALF YEAR | QUARTER | TO DATE | ||
| Gold Production & Sales | ||||||
| Total material mined Tonnes 4,125,271 2,440,880 6,566,151 | 2,440,719 | 9,006,870 | ||||
| Total ore mined Tonnes 2,062,257 1,614,396 3,676,653 | 1,822,567 | 5,499,220 | ||||
| Average ore grade g/t gold 0.93 1.02 0.97 | 1.00 | 0.98 | ||||
| Strip ratio t:t 1.0 0.5 0.8 | 0.3 | 0.6 | ||||
| Ore milled Tonnes 1,554,128 1,574,403 3,128,531 | 1,554,803 | 4,683,334 | ||||
| Milled head grade g/t gold 1.06 1.08 1.07 | 1.07 | 1.07 | ||||
| Gold recovery % 91.8 91.7 91.7 | 92.2 | 91.9 | ||||
| Gold produced ounces 48,497 50,150 98,647 | 49,096 | 147,743 | ||||
| Gold sales1 ounces 44,209 50,074 94,283 | 46,764 | 141,047 | ||||
| Average sales price US$/ounce 1,910 1,954 1,933 | 2,036 | 1,967 | ||||
| Unit Production Costs | ||||||
| Mining cost US$/t mined 5.21 7.09 5.91 | 6.68 | 6.12 | ||||
| Processing cost US$/t milled 11.27 10.26 10.76 | 11.15 | 10.89 | ||||
| G & A cost US$M/month 1.61 1.71 1.66 | 1.72 | 1.68 | ||||
| All-In Site Cost | ||||||
| Production cost US$/ounce 905 769 836 | 788 | 820 | ||||
| Royalties US$/ounce 134 138 136 | 154 | 142 | ||||
| Sub-total US$/ounce 1,038 908 972 | 942 | 962 | ||||
| Sustaining capital US$/ounce 40 22 31 | 40 | 34 | ||||
| Total All-In Site Cost2 US$/ounce 1,078 930 1,003 | 982 | 996 | ||||
| Notional Cashflow from Operations | ||||||
| Cash Margin US$/ounce 832 1,024 931 | 1,054 | 971 | ||||
| Notional Cash Flow US$M 40 51 92 | 51 | 143 |
Notes:
1. Gold sales are recognised in Perseus’s accounts when gold is delivered to the customer from Perseus’s metal account.
2. There have been no costs capitalised in respect of excess waste stripping in the quarter.
Table 7: Edikan Block Model to Mill Reconciliation
| BLOCK MODEL TO MILL CORRELATION FACTOR | |||
|---|---|---|---|
| PARAMETER | |||
| 3 MONTHS | 6 MONTHS | 1 YEAR | |
| Tonnes of Ore | 1.00 | 0.98 0.99 | |
| Head Grade | 1.12 | 1.10 1.13 | |
| Contained Gold | 1.12 | 1.08 1.12 |
SISSINGUÉ GOLD MINE, CÔTE D’IVOIRE
During the March 2024 quarter, Sissingué produced 17,092 ounces of gold at a production cost of US$1,475 per ounce and an AISC of US$1,628 per ounce.
Ore processed in the Sissingué mill was mined from pits at Sissingué as well as the satellite pits at Fimbiasso East and West. Overall production performance for the mine during the quarter was reasonably in line with the previous quarter. Mill runtime at 87.0% was down compared to 93.8% in the prior quarter but this was largely offset by throughput rate (214 tph compared to 207 tph). Gold recovery rates (90.2% compared to 91.2%) and average head grade (1.43g/t gold compared to 1.44g/t) were reasonably steady.
The AISC for the quarter of US$1,628 per ounce was US$130 per ounce higher than the AISC of US$1,498 per ounce achieved last quarter. This increase was driven mainly by 5% lower gold production as well as higher grade control and drill and blast costs incurred in an effort to increase mine movements. With a weighted average sales price of US$2,052 per ounce for the quarter (an increase of US$33 per ounce relative to the prior quarter), the cash margin of US$424 per ounce was achieved resulting in notional cashflow for the quarter of US$7 million.
Refer to Table 8 below for details of operating and financial parameters at the Sissingué gold mine during the period ending 31 March 2024 and relevant prior periods.
Table 8: Sissingué Quarterly Performance
| PARAMETER | UNIT | SEPTEMBER 2023 | DECEMBER 2023 | DECEMBER 2023 | MARCH 2024 | FY 2024 |
|---|---|---|---|---|---|---|
| QUARTER | QUARTER | HALF YEAR | QUARTER | TO DATE | ||
| Gold Production & Sales | ||||||
| Total material mined Tonnes 2,206,499 2,861,836 5,068,335 | 2,822,049 | 7,890,384 | ||||
| Total ore mined Tonnes 148,674 459,123 607,797 | 455,845 | 1,063,642 | ||||
| Average ore grade g/t gold 1.05 1.18 1.15 | 1.52 | 1.31 | ||||
| Strip ratio t:t 13.8 5.2 7.3 | 5.2 | 6.4 | ||||
| Ore milled Tonnes 348,373 429,288 777,661 | 405,995 | 1,183,656 | ||||
| Milled head grade g/t gold 1.04 1.44 1.26 | 1.43 | 1.32 | ||||
| Gold recovery % 90.5 91.2 90.9 | 90.2 | 90.6 | ||||
| Gold produced ounces 10,570 17,981 28,551 | 17,092 | 45,643 | ||||
| Gold sales1 ounces 6,548 17,572 24,120 | 12,863 | 36,983 | ||||
| Average sales price US$/ounce 1,974 2,019 2,007 | 2,052 | 2,023 | ||||
| Unit Production Costs | ||||||
| Mining cost US$/t mined 4.85 4.62 4.72 | 5.06 | 4.84 | ||||
| Processing cost US$/t milled 17.08 14.53 15.67 | 16.14 | 15.83 | ||||
| G & A cost US$M/month 1.49 1.61 1.55 | 1.46 | 1.52 | ||||
| All-In Site Cost | ||||||
| Production cost US$/ounce 1,999 1,350 1,590 | 1,475 | 1,547 | ||||
| Royalties US$/ounce 64 126 103 | 130 | 113 | ||||
| Sub-total US$/ounce 2,063 1,475 1,693 | 1,605 | 1,660 | ||||
| Sustaining capital US$/ounce 31 23 26 | 23 | 25 | ||||
| Total All-In Site Cost2 US$/ounce 2,095 1,498 1,719 | 1,628 | 1,685 | ||||
| Notional Cashflow from Operations | ||||||
| Cash Margin US$/ounce (121) 521 288 | 424 | 338 | ||||
| Notional Cash Flow US$M (1) 9 8 | 7 | 15 |
Notes:
1. Gold sales are recognised in Perseus’s accounts when gold is delivered to the customer from Perseus’s metal account.
2. Included in the AISC for the quarter is US$2 million of costs relating to excess waste stripping. When reporting cost of sales, in line with accepted practice under IFRS, this cost will be capitalised and the costs amortised over the remainder of the relevant pit life.
MINERAL RESOURCE TO MILL RECONCILIATION
The reconciliation of processed ore tonnes, grade and contained ounces relative to the Sissingué Mineral Resource block model is in Table 9 below. During the last three months, grade control has predicted additional tonnes (+29%) at a slightly reduced grade (-1%) resulting in an increase in overall ounces (+27%) when compared to the Mineral Resource Estimate (MRE). Over the last six- and 12-month periods, Sissingué has also produced more metal than the Mineral Resource model predicted. Perseus regards the overall outperformance as being reasonable compared to normal industry standards.
Table 9: Sissingué Complex Block Model to Mill Reconciliation
| BLOCK MODEL TO MILL CORRELATION FACTOR | |||
|---|---|---|---|
| PARAMETER | |||
| 3 MONTHS | 6 MONTHS | 1 YEAR | |
| Tonnes of Ore | 1.29 | 1.15 1.15 | |
| Head Grade | 0.99 | 1.02 1.04 | |
| Contained Gold | 1.27 | 1.18 1.19 |
BAGOÉ MINING LEASE
Perseus’s Environmental and Social Impact Assessment (ESIA) together with the Definitive Feasibility Study for its proposed Bagoé mining operation, have been approved by Côte d’Ivoire’s environmental regulator (ANDE) and the Department of Mines, Petroleum and Energy. Granting of an Exploitation Permit has also been approved by the Inter- Ministerial Committee and now awaits signature by the President of the Republic.
Exploration activities, including a RC drill programme, will commence in Q4 with the aim of evaluating targets close to existing resources and reserves.
GROUP GOLD PRODUCTION AND COST MARKET GUIDANCE
Forecast group gold production and AISC for the June 2024 half year and full 2024 financial year are shown in Table 10 below. This guidance is unchanged from what was previously provided to the market.
Table 10: Production and Cost Guidance
| DECEMBER 2023 HALF YEAR | JUNE 2024 HALF YEAR | 2024 FINANCIAL YEAR | ||
| PARAMETER | UNITS | |||
| (ACTUAL) | FORECAST | FORECAST | ||
| Yaouré Gold Mine |
Production Ounces 134,379 100,000 to 113,000 235,000 to 247,000 All-in Site Cost USD per ounce 805 $1,150 to $1,300 $900 to $1,000
Sissingué Gold Mine
Production Ounces 28,551 36,000 to 41,000 65,000 to 69,000 All-in Site Cost USD per ounce 1,719 $1,450 to $1,650 $1,400 to $1,500
Edikan Gold Mine
Production Ounces 98,647 90,000 to 100,000 191,000 to 201,000 All-in Site Cost USD per ounce 1,003 $1,100 to $1,250 $1,000 to $1,100
PERSEUS GROUP
Production Ounces 261,577 226,000 to 254,000 491,000 to 517,000 All-in Site Cost USD per ounce 979 $1,180 to $1,340 $1,000 to $1,100
SUSTAINABILITY
SUSTAINABILITY GOVERNANCE
During the quarter, Perseus continued to strengthen its sustainability governance through the following activities:
- Its Safely Home Every Day programme continues to deliver positive outcomes through the leadership field engagements.
- The fatality risk management critical control verification process has been deployed across the three operating sites and Exploration.
- Nkosuo mining project at Edikan has begun deployment during the quarter.
- Rehabilitation of the Yaouré Govissou pit has been formally approved.
- A number of projects are out for tender as part of the Yaouré community development plan.
SUSTAINABILITY PERFORMANCE
This quarter, Perseus continued its strong sustainability performance relative to objectives and targets, as shown below in Table 11 and summarised as follows:
- Safety:
- Safety performance across the portfolio has remained relatively stable this quarter, with the Group 12-month rolling average Total Recordable Injury Frequency Rate (TRIFR) slightly increasing from 0.89 at the end of December 2023 to 1.02 at the end of March 2024. There were three recordable injuries in the March quarter across the Group.
- Group 12-month rolling average Lost Time Injury Frequency Rate (LTIFR) remains stable at 0.24 for the March quarter.
- Social:
- Total economic contribution to Perseus’s host operating countries Ghana, Côte d’Ivoire and Sudan for the reporting quarter was ~US$143 million (approximately 61% of revenue), which included approximately US$94.5 million paid to local suppliers representing 85% of procurement on Purchase Order Value basis, US$8.2 million paid as salaries and wages to local employees, US$39.2 million in payments to government as taxes, royalties and other payments and ~US$0.9 million in social investment.
- Local and national employment remained stable at 95% and the proportion of female employees across the Group also remained stable at 13% for the March quarter.
- There were no significant community events (Category 3 or above) reported during the March quarter.
- Environment:
- Total Scope 1 and 2 Greenhouse Gas emissions intensity per ounce of gold produced remained stable at ~0.52 tCO2e/oz for the quarter ended March 2024.
- Zero significant (Category 3) environmental or tailings dam integrity issues occurred during the period.
In achieving the above, Perseus encountered the following sustainability challenges during the quarter:
- Illegal mining activities on Perseus’s mining and exploration licence areas continue to present challenges for the Company across our activities in Ghana, Côte d’Ivoire and Sudan.
Table 11: Sustainability Quarterly Performance
| PERFORMANCE | SUB-AREA | METRIC | UNIT | JUNE 2023 QUARTER | SEPTEMBER 2023 | DECEMBER 2023 | MARCH 2024 |
| DRIVER | QUARTER | QUARTER | QUARTER |
Governance Compliance Material legal non-compliance Number 0 0 0 0
Social Workplace fatalities Number 0 0 0 0 Worker Health, Safety and Wellbeing Total Recordable Injury Frequency (TRIFR) Total Recordable Edikan – 1.03 Edikan – 1.02 Edikan – 1.03 Edikan 1.46 Sissingué – 0.89 Sissingué – 0.82 Sissingué – 0.38 Injuries per Sissingué – 0.35 Yaouré – 1.21 Yaouré – 1.20 million hours Yaouré – 1.18 Yaouré – 1.13 worked, rolling 12 Sudan – 4.43 Exploration – 1.65 Exploration – 0.85 Exploration – 0.74 months Exploration – 2.28 Group – 1.075 Group – 0.895 Group – 1.025 Group – 1.205 Lost Time Injury Frequency (LTIFR) Edikan – 0.21 Edikan – 0.00 Edikan – 0.00 Lost Time Injuries Edikan – 0.21 (LTIFR) per million Sissingué – 0.00 Sissingué – 0.41 Sissingué – 0.38 Sissingué – 0.35 hours worked, Yaouré – 0.61 Yaouré – 0.60 Yaouré – 0.59 Yaouré – 0.28 rolling 12 months Sudan – 0.00 Exploration – 0.00 Exploration – 0.00 Exploration – 0.00 Exploration – 0.00 Group – 0.255 Group – 0.245 Group – 0.245 Group – 0.265
| Community | Number of significant1community events | Number | 0 | 0 | 0 | 0 |
| Community investment | US$ | US$1,335,0642 | US$852,5182 | US$891,592 | US$928,887 | |
| Economic Benefit | Proportion local and national employment | % of total | 94% | 95% | 95% | 95% |
employees Proportion local and national procurement % of total 77% 85% 87% 85% procurement
| Gender Diversity | Board gender diversity | % | 29% | 29% | 33% | 33% |
| Executive gender diversity | % | 40% | 40% | 40% | 50% | |
| Proportion of women employees | % | 11.4%3 | 11.4%3 | 13.2%3 | 13%3 | |
| Responsible Environment | Number of significant1environmental events | Number | 0 | 0 | 0 | 0 |
Operations
Tailings Number of significant1 tailings dam integrity Number 0 0 0 0 failures
| Water stewardship | Water used per ounce of gold produced4 | m3/oz | 12.56 | 15.52 | 15.84 | 15.03 |
| Greenhouse Gas | Scope 1 and 2 Greenhouse Gas Emissions per | Tonnes of CO2- | 0.48 | 0.50 | 0.50 | 0.52 |
| Emissions | ounce of gold produced | e/oz |
Notes:
1. A significant event is one with an actual severity rating of 4 and above, based on Perseus's internal severity rating scale (tiered from 1 to 5 by increasing severity) as defined in our Risk Management Framework.
2. Includes accruals for the CDLM at Yaouré up to September quarter. For the December quarter and going forward, this is the actual cash flow.
3. Permanent employees only.
4. Update starting from the December 2023 Report: The water intensity calculation has been updated to water withdrawn / oz gold produced. Numbers for water stewardship are updated to reflect the update in calculation. .
5. From FY24, the Group number includes Corporate data and does not include Sudan. Perseus will look at integrating Sudan information into the Group number in future reporting periods.
ORGANIC BUSINESS GROWTH
PROJECT STUDIES
YAOURÉ AND FIMBIASSO EXPLOITATION PERMITS
Extensional and infill drilling and studies continued during the quarter on the Yaouré, Zain 1, CMA underground and Fimbiasso West deposits, inclusive of geotechnical and metallurgical sampling, test work and analysis.
Ongoing refinement of designs and schedules for the CMA underground project has also continued to add value to the project ahead of a competitive tender process to be conducted during the June 2024 quarter.
EXPLORATION
During the quarter Perseus continued to focus on organic and inorganic activities aimed at making discoveries and increasing resources and reserves. In February, a market update was released documenting details of exploration successes at our Yaouré and Sissingué/Fimbiasso operations. We also informed the market of a cooperation agreement for exploration and development opportunities in the Arabian and Nubian Shield regions.
CÔTE D’IVOIRE
Yaouré, Yaouré Central and Kousso Exploitation and Exploration Permits
Exploration activities on the Yaouré exploitation permit during the quarter focused on drilling at CMA Underground North Plunge, at Yaouré Pit and at Zain 1 (Refer to Appendix 1, Figure 1.2).
At CMA Underground North Plunge, follow-up Stage 2 drilling continued with 5,902.80m of core were completed during the quarter in 23 diamond holes, including the deepening of 12 holes. Hole deepening aimed to assess mineralisation intersected in the footwall of CMA, possibly corresponding to an extension of CMA NW which was drilled in the previous financial year.
At Zain 1, assay results from the first phase have confirmed near-surface mineralisation identified in the hanging-wall of CMA. A follow-up infill drilling phase commenced during the quarter with 9,989m drilled in 72 RC holes and 1,429.60m of core drilled in eight diamond tails. The programme is designed to achieve a drill pattern of 25m x 25m, and to define high confidence resource ounces within the optimized shell at US$2,000/oz.
At Yaouré Pit, 6,835.80m of core were drilled in 57 diamond tails, plus 8,369m were drilled in 36 RC holes and 57 RC pre-collared holes. The programme is designed to further expand the resources of the Yaouré Pit. Preliminary results indicated mineralisation beyond the Stage 2 pit shell.
On the Yaouré West exploration permit, a drone magnetics survey was completed with data interpretation underway at the end of the quarter. The target area encompasses the eastern contact of an intrusion, NW trending fault blocks and a target defined from the interpretation of airborne Full Tensor Gravity Gradiometry.
Field mapping continued at Yaouré West with four selected targets completed. Auger drilling commenced at Target 2, in the NW corner of Yaouré West over soil geochemistry and multi-element survey anomalism, with 1,583m were drilled in 203 holes. The programme is 62% complete.
Sissingué / Fimbiasso and Mahale Permits Exploitation and Exploration Permits
At Sissingué drilling resumed at Airport West with 1,303m drilled in 16 RC holes. Assays are pending.
The Fimbiasso resource definition drilling continued during the quarter with 23,003m drilled in 256 RC holes and 465.10m of core were drilled in five geotechnical holes. The programme is comprised of three stages and is aimed at converting Inferred Resources to Indicated Resources and to assess possible extensions of mineralisation.
Assay results indicate the mineralisation is continuous down-dip and along strike, with grades lowering towards the southwest.
PERSEUSMINING.COM