Why the Perseus Mining (ASX:PRU) share price is gaining today

The Perseus Mining (ASX:PRU) share price is up 1.5% in morning trade after the gold miner's latest market update. We take a look at why.

Perseus Mining Limited (ASX: PRU) shares are on the rise this morning after the company announced it's poured the first gold at its Yaouré Gold Mine five weeks ahead of plan. At the time of writing, the Perseus share price is up 1.54% to $1.32 in morning trade.

What did Perseus report?

This morning, the Perseus share price is pushing higher after the company advised it now expects to declare commercial production at its Yaouré Gold Mine in the Ivory Coast in the March 2021 quarter. Perseus also forecasts its first shipment of gold from the mine to occur in the same quarter.

Furthermore, the company revealed it believes it can increase its annual gold production to at least 500,000 ounces by the 2022 financial year (FY2022).

Commenting on the results, Perseus CEO Jeff Quartermaine said:

Pouring our first gold at Yaouré yesterday represented the achievement of a major milestone in the construction and commissioning of Perseus' third gold mine. It also represented the delivery of another promise made to shareholders by Perseus's management team, namely, to achieve its stretch target of first gold at Yaouré in December 2020…

We are now looking forward to achieving our next target of increasing our production to more than 500,000 ounces of gold per year at a cash margin of not less than US$400 per ounce in FY2022. We will also extend our capacity to consistently produce gold at these levels for many years to come by organically increasing our Ore Reserve inventory through successful near-mine exploration programs across our three mines.

Perseus share price and company snapshot

Perseus is a gold explorer and miner operating in Ghana and the Ivory Coast. Following on the successful development and commissioning of its Yaouré mine, the company will own and operate three gold mines, Edikan, Sissingué and Yaouré, across the two African nations .

Like most every share on the ASX, Perseus got hammered during the COVID driven market panic earlier in the year. The Perseus share price fell 44% from 21 February through to 13 March. Since the March low, Perseus shares are up 85%.

Year to date, the Perseus share price is up 13%. That compares to a 1% gain on the broader S&P/ASX 200 Index (ASX: XJO).

Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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