Gold was on fire in 2020, racing to record highs of $2071 in response to record low-interest rates and investors turning safe-haven in the wake of the covid-19 pandemic. Amid the massive price gains, mining companies were some of the biggest beneficiaries as most ramped operations to take advantage of the record high prices. Perseus Mining is the latest to affirm the positive impact of record-high gold prices.
Perseus Cash Flows
The mining company ramped up production operations, conversely achieving half-year gold production of 137,386 ounces, up 12% from the previous half-year. The company closed the year at the end of production guidance of between 125,000 and 139,000 ounces.
Likewise, its gold quarterly sales were up 10% at an average realized price of $1,687. Perseus Mining generated quarterly cash flows from operations of $44.6 million and half-year cash flows of $88.3 million. As or the end of the year, it had cash and bullion on hand, amounting to $118.1 million as debt reduced by $20 million to $130 million.
Perseus has set a gold production guidance of between 175,000 and 195,000 ounces for the first half of 2021. As the company moves to ramp up production Argonaut Gold has confirmed that the province of Ontario has filed the Closure Plan for its Magino Project.
Argonaut Magino Project
The closure plan marks a significant milestone that paves the way for the company to begin site preparation activities for the construction of the mine and processing facility. Argonaut has confirmed two year construction period with the first gold production from the mine expected in the first half of 2023.
Similarly, GoGold Resources has released positive results for its preliminary Economic Assessment at its Los Ricos South Project in Jalisco State, Mexico. The company has since confirmed an after-Tax NPV of $295 million.
According to Chief Executive officer Brad Langile, the Los Ricos district project’s acquisition has proved to be a tremendous catalyst for its growth. Likewise, the PEA affirms the strong economics of the district where GoGold intends to expand drill targets.