Perseus Mining Limited: VAT Refund & Operational Update
June 13 2014 - 2:12AM
Marketwired Canada
NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN
THE UNITED STATES
Perseus Mining Limited ("Perseus" or the "Company") (TSX:PRU)(ASX:PRU) wishes to
advise of two recent developments relating to its Edikan Gold Mine in Ghana
("Edikan").
PARTIAL REFUND OF VAT DEBT
On 11 June 2014, Perseus received GH cents20.0M (USD6.7M) as a partial payment
of the outstanding VAT debt of GH cents97.5M (USD32.7M) owed to the Company by
the Government of Ghana. Based on dialogue with the Government, two further
payments of GH cents10.0M (USD 3.3M) and GH cents 17.6M (USD 5.8M) are currently
scheduled to be made on or around 24 June 2014 and 8 July 2014 respectively.
Following the recent payment of GH cents20million, the outstanding VAT position
is as follows:
GH cents
Million USD Million(i)
--------------------------------
Approved VAT claims 103.730 34.741
VAT claims pending audit 10.169 3.406
Less: Cash refunds received to date (27.400) (9.177)
Less: Offsets using Treasury Credit Notes (8.987) (3.010)
VAT Refunds Due and Payable 77.512 25.960
Less: Statutory Tax payments deferred (14.190) (4.752)
Net Refund Due for payment 63.322 21.208
(i)Assumes USD1.00=GH cents2.9858 as at 12 June 2014
The Company is continuing to work with the Government to agree a schedule for
the repayment of the balance of the outstanding debt and also to avoid a repeat
of the current situation where a large VAT receivable accumulates and remains
unpaid for an extended period.
Comment from Managing Director, Jeff Quartermaine
"It's pleasing to receive GH cents 20 million of the debt owing from the
Ghanaian government and to have been informed of a payment schedule for a
further GH cents 27.6 million. Perseus remains debt free with a strong cash
position which will be further enhanced by receiving the full VAT payment from
the Ghanaian Government. We are looking forward to putting the issue of the
outstanding VAT receivable behind us.
The availability of grid power to the Edikan Gold Mine has also been frustrating
in recent times. We have been working extremely hard to address the matters that
we can control such as operating performance and operating costs, and in the
past 12 months we have made major advances on both fronts.
When it comes to repayment of VAT and the availability of grid power, these are
outside of our control but they certainly do take the gloss off what would
otherwise be a creditable performance at the Edikan Gold Mine by our hard
working team of employees and contractors."
GRIDCO SUBSTATION FAILURE
At 7:40pm on Saturday 7 June 2014, a current transformer (CT) failed in the
sub-station owned and operated by the government owned power company GridCo,
which is located on the site of Perseus's Edikan Gold Mine. The exact cause of
the failure of the CT is unknown.
The failure of the CT resulted in damage to all three Voltage Transformers (VTs)
on the circuit, failure of insulators and damage to several of the cables that
feed power to the Edikan processing plant. This resulted in a total power outage
to the plant and subsequent significant downtime for Edikan's ore crushing and
milling operation while the repairs could be completed. As the failure occurred
on the 11,000 volt line that is rated to 1,200amps, the repairs had to be
performed by GridCo who operate and maintain the substation.
The CTs and VTs that failed were not standard GridCo components and were not
carried as spares by GridCo, however suitable CT replacements of a different
design/configuration were able to be sourced after a short delay. The different
design/configuration of the replacement CTs also necessitated replacement of
some busbars and removal, modification and installation of the mounting plates,
brackets, and platforms. These tasks were all carried out by GridCo.
As a remedial measure, the VTs and damaged insulators were removed from the
power factor correction circuit. This has rendered the power factor correction
circuit inoperable until full repairs can be carried out. As a result, Edikan is
required to reduce its power demand in the evenings during the peak demand
period until Gridco is able to source the replacement parts. Gridco is expected
on site during the planned SAG mill maintenance shutdown on 17 June 2014 to
carry out additional works on the substation.
Due to high voltage and current involved there was also damage to the main
feeder cables to the plant. This required two of the cables to be terminated and
the replacement of a connection lug. This work was carried out by Perseus's
maintenance personnel.
Following the repairs, the SAG mill was restarted at approximately 21:00 hours
on Tuesday 10 June 2014 after approximately 73 hours of unscheduled downtime.
The impact of this interruption to gold production at Edikan is that Perseus
will be challenged to achieve its revised production guidance for the three, six
and 12-month periods ending 30 June 2014. This is extremely disappointing to
management as following the resumption of gold production after the fire in the
cyclone nest at the Edikan processing plant in April 2014 the Edikan operation
has performed strongly and was on target to achieve guidance as a result of the
continued improvement in operating performance as illustrated by the key
indicators in the Table below:
Further details of the impact of the substation failure on gold production for
the three, six and 12-month periods ending 30 June 2014 will be documented in
the Company's June 2014 Quarterly Report that will be published in mid July
2014.
----------------------------------------------------------------------------
Description Unit Sep-13 Dec-13 Mar-14 Apr-14 May-14 Jun-14
Month to
Quarter Quarter Quarter Month(1) Month Date(2)
----------------------------------------------------------------------------
Primary
Crusher
Tonnes
Crushed(1) Wmt 1,577,104 1,661,562 1,522,031 372,779 592,791 69,785
Runtime % 56% 58% 54% 41% 60% 38%
Run Time hrs 1,229 1,285 1,171 294 447 54
Throughput
rate wmtph 1,284 1,293 1,300 1,268 1,327 1,325
SAG Mill
Tonnes Milled Dmt 1,628,900 1,791,410 1,723,143 421,061 606,436 119,333
Run Time % 84% 85% 88% 65% 90% 99%
Run Time hrs 1,863 1,877 1,909 469 672 143
Throughput
rate dmtph 874 954 902 897 903 836
Recovery % 83% 84% 84% 84% 86% 87%
Head Grade g/t 1.05 1.00 0.95 1.01 1.02 0.95
----------------------------------------------------------------------------
Notes:
1. Includes 7 days of lost production time (plus additional time required
to stabilise the circuit) as a result of a fire in the cyclone nest;
2. Up to and including 6 June 2014
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 Edikan Gold Mine without any major disruption, development of
a mine at Tengrela, the receipt of required governmental approvals, the accuracy
of capital and operating cost estimates, 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 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.
FOR FURTHER INFORMATION PLEASE CONTACT:
Perseus Mining Limited
Managing Director:
Jeff Quartermaine
+61 8 6144 1700
jeff.quartermaine@perseusmining.com (Perth)
Perseus Mining Limited
Investor Relations:
Nathan Ryan
+61 4 2058 2887
nathan.ryan@nwrcommunications.com.au (Melbourne)
Perseus Mining (TSX:PRU)
Historical Stock Chart
From Mar 2025 to Apr 2025
Perseus Mining (TSX:PRU)
Historical Stock Chart
From Apr 2024 to Apr 2025
