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.

| More on:
gold asx share price rise represented by hands holding pile of gold

Image source: Getty Images

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).

Wondering where you should invest $1,000 right now?

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes could be the five best ASX stocks for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now.

*Returns as of August 16th 2021

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.

More on Share Market News