Perseus Mining has just secured A$60 million in funding. What strategy does the company intend to use in order to optimize those funds?

A$40 million of the funding will be allocated to the development of our Sissingué project in northern Côte d’Ivoire, and the remaining US$20 million will be used as needed for working capital. We now have the ability to press forward with our plan of producing gold from three mines, and by 2021, produce around 500 thousand ounces of gold. The strategy involves continuing to improve production from Edikan, our Ghanaian property, which since December has been cash positive. The second element is to bring the Sissingué gold mine into operation by Q1/Q2 of 2018, and having secured the last of the financing, we are halfway through construction. Once we have generated sufficient cash from the Edikan and Sissingué operations, and arranged a suitable debt financing package, we will be able to accelerate the development of our third mine, the Yaouré project that is also in Côte d’Ivoire.

What strategies does the company have in place to manage the risks of its operations abroad?

When operating in West Africa, things can change quickly so we want to maintain a spread of risk, both political and technical. We have been a single mine operation for some time, and if something were to happen to that mine, we would encounter problems. A secondary revenue source is therefore vital to achieving a reliable income stream.

What are the advantages of developing a gold mining project in Western Africa given the current state of the market?

When we began work on the Sissingué project, it was ideal timing because the lack of activity in the sector allowed us to engage contractors at relatively low rates in comparison to those that might apply in a bull market for gold. In contrast, our first mine, Edikan, was brought into production during a peak market, making labor difficult to source. Strong quality assets, a solid and capable workforce, financing, a strong social licence to operate, and a favorable market are necessary ingredients; the absence of one of those components will result in a struggle. What separates Perseus Mining from some other companies is that when we talk about growth, we already own the assets that will deliver that growth, and we are putting them to work as we speak.

What are the benefits of headquartering Perseus Mining in WA, and how does working remotely impact your operations?

The company was conceived here, and our staff and our families are based here. If an urgent matter arises and we need to travel to the site, feasibly we could get on a plane at ten pm and be in West Africa by 11 am, the following morning.  At two in afternoon, it is six in the morning in Ghana, marking the start of an eight hour period when we are able to communicate by phone or Skype. The advantage of being based in Perth is that there is a huge pool of expertise, and we are able to purchase those skills in Australian dollars rather than in American dollars or Sterling. We do not think we lose anything in terms of management control by being based in Perth. Quite the contrary, we think that there are very positive advantages but most importantly, it works for us. 

What approach does Perseus Mining take towards the local communities where it operates?

Perseus places a very high priority in working closely with our host communities and host governments to establish collaborative and mutually beneficial relations. We have come to realise over time that there is a very close nexus between harmonious community relations and harmonious labour relations. The fact that this exists is a function of the fact that most of our workforce is drawn from the local communities, and so if they are unhappy at home, it does affect their performance at work and therefore the productivity of our mine.

At Edikan we have invested heavily in our community. Aside from investment in relocation housing and compensation for disturbance to farmers, we transfer a sum of money annually to the Edikan Trust which is a fund that is used by the community to undertake projects that they think will benefit their community. In addition to this, we invest in education and health. We have put more than 100 local youth through vocational training and this works well as many of them are then able to be employed productively in our mine and those who cannot get jobs with us are sufficiently skilled to find work elsewhere in the industry in Ghana.