Perseus Mining’s production dips at Ghana mine

Dual-listed Perseus Mining has reported a slight decline in production during the first quarter of its 2014 financial year, owing to lower material movements and processing at its Edikan mine, in Ghana.

Gold production for the three months to September declined to 45 830 oz, which was 4% below the June quarter production of 47 565 oz.

Nearly 17% less ore was mined during the quarter under review and the head grade reduced by 13%. The lower first-quarter head grade was in line with expectations, Perseus said on Tuesday, adding that it reflected the strategy of processing a blend of ore drawn from stockpiles and the existing openpits.

The decreased head grade was partially offset by a 3% improvement in the gold recovery rate and improvements in the availability and use of the Edikan processing plant.

Cash costs for the quarter were 5% lower than in the June quarter, as Perseus’ cost-cutting measures took effect. The company said that it expected further efficiency gains and cost improvements in future reporting periods.

Cash cost for the quarter were $1 342/oz.

Meanwhile, during the quarter under review, Perseus sold 49 069 oz of gold, at an average price of A$1 342/oz, compared with the 52 626 oz sold during the previous quarter, at a sales price of A$1 308/oz.

Earlier this month, ASX- and TSX-listed Perseus announced an updated life-of-mine (LoM) plan for the Edikan mine, extending the project’s life by nearly one year, to 2024.

The new LoM plan estimated that average gold production of 230 000 oz would be reached, at an all-in cash cost of $937/oz from 2014 to 2024. The company’s production guidance for the financial year to the end of June 2014 remained unchanged at 200 000 oz.

Read more: September central bank gold changes around the world

In September, Turkey’s holdings of gold jumped for the third month in a row 2.9 tons to 490.3 tons while Kazakhstan added 2.52 tons taking its total holdings to 137 tons.

Azerbaijan, Belarus, Kuwait, the Kyrgyz Republic, the Philippines, Serbia, and Ukraine also boosted their gold reserves.

Russia moderately reduced its reserves for the first time in 12 months, dipping 0.37 mt to 1,015 mt, as did Mexico and Mozambique. Canada sold off 3 of its 3.1 tons.

Central-bank gold purchases were red hot last year, as countries added a combined 534.6 tons, the most since way back in 1964. 2013 purchasing has been cooler, and is predicted to finish up at roughly 350 tons total. 

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