Mining’s old guard needs strong medicine
A new report details subpar investor returns in the mining industry over the last decade, particularly big cap diversified companies which have not adapted to new realities.
Australia’s Perseus Mining announced on Thursday a 6% increase in African gold reserve base.
The company’s total measured and indicated resources are estimated to be 122.8 million tonnes grading 1.31 g/t gold, containing 5.2 million oz. of gold, compared with the estimate of 132.9 million tonnes grading at 1.19 g/t gold for 5.1 million oz. in 2022.
According to Perseus, proven and probable ore reserves are now estimated at 73.8 million tonnes at 1.45 g/t gold for 3.4 million ounces, up from the year ago estimate of 3.3 million ounces. It represents an increase after depletion of plus 192,000 ounces (plus 6%) via organic growth during the past 12 months.
The company currently operates the Edikan mine in Ghana, the Sissingue and Yaoure mines in Cote d’Ivoire and the Meyas Sand gold project in Sudan.
At the Yaoure gold mine, the completion of an underground feasibility study, combined with underground and open-pit definition drilling and studies, has converted inferred mineral resources to indicated and increase the mine’s ore reserves by 5.5 million tonnes of grade 2.31 g/t (410,000 oz.) after depletion, reaching a total of 2.1 million oz.
The company said 2023 financial year production was 535,281 oz. at an all-in-sustaining cost of $959 per ounce.
Shares of Perseus rose 4.8% Thursday morning for a market capitalization of $1.48 billion.
