PERTH (miningweekly.com) – Dual-listed gold miner Perseus Mining has swung to a loss during the six months ended December, with the company reporting an after-tax net loss of A$4-million.

This compared with after-tax profit of A$32.4-million during the previous corresponding period.

Revenue for the interim period reached A$135.2-million, from the sale of 93 686 oz, compared with the A$147-million generated in revenue during the 2012 half-year.

“The six months to December have presented challenging trading conditions for many participants in the gold sector, and we are no exception,” said Perseus MD Jeff Quartermaine.

He told shareholders that in response to the falling gold price the company had adopted a production strategy aimed at minimising capital investment.

“This meant that part of our mill feed for the period was drawn down from existing low-grade ore stockpiles in preference to targeting higher-grade ore from new mining areas that required investment of significant amounts of capital to pre-strip waste.”

Quartermaine said notwithstanding very material improvements in productivity measures, including mill runtime, throughput rates and recoveries, the processing of lower-grade ore resulted in lower gold production and when combined with significantly lower gold prices, Perseus’ profitability and cash flow declined relative to prior periods.

Gold production at the Edikan mine, in Ghana, declined by 9% on the previous corresponding period to reach 94 190 oz, owing to the lower average head grade from blending lower-grade ores.

Looking ahead, Quartermaine said that given the material productivity improvements made to the operation, along with the reduction in operating costs during the last six months, Perseus was well positioned for the future, with its life-of-mine plan expecting higher-grade ore to become available for processing.

“If combined with gold prices at or above current levels, then improvements in financial performance are expected to eventuate,” he said.