ENP Newswire -
Release date- 14022014 -
Comments from Perseus's Managing Director,
The six months to
In response to a falling gold price, Perseus adopted a production strategy aimed at minimising capital investment. This meant that part of our mill feed for the period was drawn from existing low grade ore stockpiles in preference to targeting higher grade ore from new mining areas that required investment of significant amounts of capital to pre-strip waste.
Notwithstanding very material improvements in productivity measures including mill runtime, throughput rates and recoveries, processing lower grade ore resulted in lower gold production and when combined with significantly lower gold prices, our profitability and cash flow declined relative to prior periods. Looking forward, given the material productivity improvements made to our operation along with a reduction in our operating cost base during the last six months, we are now well positioned for the future, when in accordance with our updated Life of
If combined with gold prices at or above current levels then improvements in financial performance are expected to eventuate.
The group's net after tax loss for the half-year ended
Cost of Sales
Costs of sales included mining, processing and site G&A costs (excluding salaries) totalling
Impairment of Available-for-sale financial asset
The value of the Company's investment in
Income Tax Expense
The income tax gain that has been recognised in the Income Statement comprises
Cash receipts from the sale of gold totalled
Cash and Investments
In addition, the Group held 8,984 ounces of gold at its EGM, at the refinery while in the process of being refined or in the Company's metal account on this date. Perseus also held
Derivative financial instruments
The asset in each case reflects the difference in value of the hedge contracts on the respective balance dates relative to the value of the contracts on the date of inception of hedge accounting. The amount of gold sold forward under hedging agreements represents 4% of the gold contained in the group's currently defined total Ore Reserves and approximately 30% of the group's total forecast gold production to the end of 2015.
The Company has established a dividend policy that provides for the payment of dividends to shareholders when Directors are confident that such payments can be sustained from cash flow on an ongoing basis. No dividends were declared or paid during the period.
Tel: +61 8 6144 1700
Tel: +61 8 6144 1700
Caution Regarding Forward Looking Information
This report contains forward-looking information which is based on the assumptions, estimates, analysis and opinions of management made in light of its experience and its perception of trends, current conditions and expected developments, as well as other factors that management of the Company believes to be relevant and reasonable in the circumstances at the date that such statements are made, but which may prove to be incorrect.
Assumptions have been made by the Company regarding, among other things: the price of gold, continuing commercial production at the
Readers are cautioned that the foregoing list is not exhaustive of all factors and assumptions which may have been used by the Company. Although management believes that the assumptions made by the Company and the expectations represented by such information are reasonable, there can be no assurance that the forward-looking information will prove to be accurate.
Forward-looking information involves known and unknown risks, uncertainties, and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any anticipated future results, performance or achievements expressed or implied by such forward-looking information.
Such factors include, among others, the actual market price of gold, the actual results of current exploration, the actual results of future exploration, changes in project parameters as plans continue to be evaluated, as well as those factors disclosed in the Company's publicly filed documents.
The Company believes that the assumptions and expectations reflected in the forward-looking information are reasonable. Assumptions have been made regarding, among other things, the Company's ability to carry on its exploration and development activities, the timely receipt of required approvals, the price of gold, the ability of the Company to operate in a safe, efficient and effective manner and the ability of the Company to obtain financing as and when required and on reasonable terms.
Readers should not place undue reliance on forward-looking information. Perseus does not undertake to update any forward-looking information, except in accordance with applicable securities laws.
Most Popular Stories
- 5 Notable Hispanic Technology Executives
- Top Hispanic Tech Companies Push for the Top
- Rand Paul Tops Presidential Straw Poll at Conservative PAC Conference
- Tesla's Alt-Energy Future Aims for Massive Lithium-Ion Battery Production
- New Chat App, Yik Yak, Causes Problems for Students
- China Urges Malaysia Flight Emergency Response
- Gas Prices May Jump from Calif. Emissions Law
- Obama Meets with Ukraine Prime Minister Wednesday
- Visa, MasterCard Team Up to Focus on Payment Security
- Russia, Crimea Discuss Referendum