Perseus Mining Limited (PMNXF)

[Vegas Matt]

Perseus Mining SA Article PMNXF
http://seekingalpha.com/article/3225226-perseus-mining-advancing-the-sissingue-project?auth_param=6ojk:1amqh3s:d409cce2fdcfb4f57387039e38c6a176&uprof=45


Summary

Perseus Mining's Q1 production was better than I anticipated, despite the lack of continuous power.
Meanwhile, Perseus has started the first 'construction' work at the new Sissingué project.
The Sissingue feasibility study indicates the project would be a cash cow, but I want to see it confirmed first before acting on it.

Introduction

A while ago, I wrote Perseus Mining (OTCPK:PMNXF) was a turnaround story and after several years wherein the company underperformed, it seemed to be on the right track to increase the production at its flagship Edikan gold project in Ghana, whilst reducing the operating expenses per ounce. I also doubted the Sissingué project was as good as it appeared to be, as I didn't fully trust the external consultant that completed the feasibility study. I will reflect on both issues in this article to check if Perseus is indeed on the right track.
The Q1 production results

Perseus produced almost 47,500 ounces of gold in the first quarter of this year which actually is a little bit more than I anticipated. As you might remember from an earlier update-article, the Ghanaian government imposed restrictions on the consumption of power for large mines, and I was expecting a larger impact. Fortunately Perseus was able to counter the lower amount of milled tonnes by a higher average grade and a lower strip ratio at the open pit.

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