Perseus swells beyond US$1b, Resolute output slides

Perseus Mining now holds more than US$1 billion in cash after a strong quarter, while Resolute Mining reported a drop in earnings and Predictive Discovery boosted production by 33%, according to Business News.

The three African-focused gold miners each released quarterly updates that painted different pictures of the sector. Perseus, which operates the Edikan and Sissingue mines in West Africa, saw its cash balance cross the billion-dollar mark for the first time. The company has been generating free cash flow steadily as gold prices held above US$2,000 an ounce through the quarter.

Resolute, by contrast, posted lower earnings. The slide came as the company dealt with higher costs and lower grades at its Syama mine in Mali. Resolute has been working to ramp up the Syama underground operation, but the transition has weighed on output and margins.

Predictive Discovery, which is developing the Bankan gold project in Guinea, reported a 33% jump in production from its early-stage operations. The company is still in the pre-production phase at Bankan but has been processing ore from a satellite deposit to generate cash. The production increase was driven by higher throughput and improved recoveries, the company said.

The three updates come as the gold price remains supported by central bank buying and geopolitical uncertainty. Perseus is now in a position to fund growth or return capital to shareholders. Resolute is focused on cutting costs and improving grades. Predictive is advancing Bankan toward a feasibility study later this year.

Perseus shares have risen 28% in the past 12 months. Resolute has fallen 15%. Predictive is up 40% as the market prices in the Bankan resource.