Perseus downgrades Edikan forecast
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PERTH, Nov 23 AAP
November 23 2012, 6:56PM
Perseus Mining has downgraded its December quarter production forecast for its Edikan mine in Ghana following delays earlier this month.
The Perth-based gold miner said it produced 22,502 ounces at Edikan in October, but mine production was restricted due to crusher problems between November 8 and 17.
"At current production rates it is estimated that total gold produced from Edikan for the December 2012 quarter may be between five per cent and 10 per cent below the lower end of December-quarter guidance of 65,000 to 70,000 ounces of gold," Perseus said in a statement on Friday.
"Every effort is being made to recover the projected shortfall."
Representatives of the crusher manufacturer were on site reviewing all aspects of the crusher operation, the company said.
Perseus has put its second potential mine, the Sissingue gold project in Ivory Coast bordering Ghana, on hold because of the possibility of the government introducing a profit-sharing arrangement.
The miner, which has been in production since August 2011, said it repaid an outstanding balance of $54 million from its restructured project debt facility on November 16, making the company debt-free.
Perseus has $43.5 million and 14,000 ounces of gold bullion on hand, and an undrawn line of credit of $100 million available.
"Subject to approval of a development decision on the Sissingue project, the company will draw on the line of credit at some point next year for capital expenditure requirements," Perseus managing director Mark Calderwood said.
It comes after the group missed its September quarter target by four per cent, producing 52,610 ounces of gold.
Perseus shares closed three cents lower at $2.45 on Friday.