WEST African-focussed gold producer Perseus Mining has raised about $32 million through a share placement to institutional investors, after reporting a $4.02 million after-tax loss in the second half of 2013.
Perseus issued 68.7 million ordinary shares – worth about 15 per cent of its existing capital – at $0.47 per share in February. UBS and GMP Securities acted as managers and book runners for the placement.
In a statement, the company said the newly raised funds would be used to accelerate productivity improvements and access to the eastern pits at its Edikan gold mine in Ghana, as well as for balance sheet flexibility. Perseus managing director and chief
executive Jeff Quartermaine said the company was pleased with the level of interest in the placement, which he said was well-supported by new and existing institutions.
“The placement will help provide us with balance sheet strength, keeping us debt freeas we continue to implement the re-optimised Edikan Life of Mine Plan focussed on maximising cash margins, increasing gold production, reducing unit costs and ensuring efficient capital deployment,” he said.
The Edikan Life of Mine Plan aims to boost ore mined at the site from 5.3 million tonnes in the 2014 financial year to 9.7mt in 2016, with gold production to increase from 200,000oz to 240,000oz.
Perseus offered the placement after finishing the December quarter with $28 million in cash and bullion available, down from $48.3 million after the June quarter.
All-in production costs at Edikan reached US$1228 per ounce, staying barely behind the average received price of US$1318/oz. Production at the mine increased 6 per cent to 48,360oz in the quarter.
Perseus earned $135.27 million from gold sales in the second half of 2013, leading to a $4.02 million loss after tax.