How has Perseus Mining performed in the last financial year? Could you share an operational update at your three mines?

I am pleased to say that our record financial results for FY23 reflect our continued strong operating performance at all levels of the business, building up a balance sheet that is unusually robust in the gold mining industry, particularly for companies of our size. Operationally, throughout the year we have systematically been at the top end of our production guidance and below the bottom end of our cost guidance, ending the year with a total production of 535,281oz, at an all-in-site cost of US$959/oz. While Sissingué is in its latter years, producing at about 50Koz/year this year, both Yaouré and Edikan are performing exceptionally well, running north of 270Koz/year and 200Koz/year, respectively. We have just released an updated Life of Mine Plan for Yaouré, extending its operational life to 12+ years, to at least 2035, and including, for the first time, an underground mining operation. Meanwhile, at Edikan, we expanded our exploration into a newly acquired area north of our existing mining lease and made a first discovery, adding about 300Koz to the reserves and extending the mine life to FY27; Though speaking without firm evidence at this stage, I would be surprised if we didn’t make further discoveries on these tenements given the multiple targets identified to date.

Perseus postponed making an investment decision at the Meyas Sand Gold Project (formerly, Block 14), but exploration is ongoing. What is the status of your work in the country?

Our intention is to continue our activities in Sudan as long as we are reasonably comfortable that we can safely do so. In April this year, we withdrew most of our employees following the escalation of the armed conflict between the Sudanese Armed Forces and the Rapid Support Force. Our project is far from the conflict areas, with no reported incidents within an area of about 250,000 km around our site, and members of our team have since returned to the Meyas Sand site, but we are not comfortable about taking an investment decision to develop the project with the conflict still raging without an end in sight in other parts of the country. Logistically, the port remains open, equipment, food, fuel, and other supplies continue to circulate; however, the investment climate is not where we require it to be for such a decision. For now, we need to be patient. The mineral resource at Meyas is substantial, has been there for a very long time, and will not go anywhere. From where I sit today, it is difficult to see an investment decision being made in the near term.

The Arabian Nubian Shield has called for the attention of various gold majors. Can you share with our audience what makes this area interesting?

This geological structure, stretching across Egypt, Sudan, Ethiopia, Eritrea, and Saudi Arabia, is massively prospective in our assessment. At our Meyas Sand Gold Project, a large gold deposit has been discovered, and there are probably many more discoveries of not only gold, but also base metals, waiting to be made across the region. In recent times, political instability has left parts of this region relatively underexplored, as explorers have preferred to go elsewhere to more politically stable jurisdictions. With the global pressures of the energy transition on the mining industry and the chances of making large discoveries diminishing around the world, I expect more people will be inclined to find a better balance between risk and reward, while abiding by rigorous Environmental, Social and Governance (ESG) standards. This was certainly the thesis that we applied when investing in the Meyas Sand Gold Project, and I believe more companies are taking careful note of this region and what appears to be an enormous mineral endowment.

In Côte d’Ivoire, Perseus developed two mines into production in the last five years. How has the country changed since the first time you visited?

The first time I stepped out of the airport back in 2011, I saw buildings dotted with bullet holes and scorched by flame. Since the end of the Civil War in 2011, the country has evolved tremendously, experiencing one of the fastest sustained economic growth rates in Sub-Saharan Africa in over a decade and becoming one of the most attractive investment destinations in Africa: and full credit for this transformation goes to its political leaders. Perseus also had its part to play in contributing to this economic growth, developing two mines in a short period of time, including our Yaouré Gold Mine that was built ahead of time and under budget during the Covid period, when the world was at a standstill. Other mining companies have since taken confidence from the fact that Perseus is successfully running mines in Côte d’Ivoire and also sought to invest in the country.

With battery metals becoming favorite, how is gold holding its appeal to investors?

“Hot” money has always moved to the next most exciting thing, but what goes up eventually comes down. No doubt there has been a shift in attention to critical minerals, which will likely remain in favor for some time, but I am not concerned. The factors that drive the popularity of gold remain strong and every time there is a financial shock, people keep turning to gold. Adding gold to the investment portfolio for risk management is still an attractive and effective strategy. Gold has its place, and it just cannot be the most popular metal, all the time.

The social element of ESG seems to be the most emphasized in Africa. Why is the “S” of ESG a bigger priority for miners in the continent?

Indeed, maintaining a social license, being welcomed by and working collaboratively with host communities, and being able to leave a legacy behind that is tangible and of benefit for these communities, is critical for us, but also for the whole continent. Africa is still facing major social systemic challenges which have to be addressed as priorities by all stakeholders: from lack of access to basic services and infrastructures, education, sustainable livelihoods, to food security and youth employment. I firmly believe that mining companies on the continent have a key role to play in tackling those challenges and supporting our host governments. The social dimension is obviously interlinked with the governance and the environmental dimensions so we need a holistic approach and we must prioritise and consult with our local stakeholders on what matters most to them; there cannot be one size fits all.

Do you have a final message?

Perseus has come a very long way over the last 10 years, building a substantial and sustainable platform with three operations. Our challenge today is to leverage what we’ve achieved and turn the company into something truly significant. I am confident we have the wherewithal to do just that so that the next five years will be every bit as interesting as the past five.