Ann: PRU AGM Presentation, page-53

Now I understand why Perseus has been struggling.

Have a read of this article on the redundancy packages - USD120,000 - 75,000 on average after 10 years service.  It is a major windfall for the workers.

This seems to imply that the average wage is around USD30k.  PRU's mining contractor gave generous working conditions to its workers and has passed on all the costs to PRU, which has been struggling to become profitable ever since it came into production.

http://www.myjoyonline.com/business/2014/february-4th/redundant-mine-workers-hit-windfall.php

I was told by the ex-CEO of ADU that there is significant over-manning in west African gold mines because the locals are not very productive.  I do not know if he was exaggerating but he said that it took 4 locals to do what one worker did in our mines.  I suppose that partly explains why NMG failed.

With the closure of the Obusi mine local wages may get back to some realistic level.  A key reason for mining in west Africa is to get the benefits of cheaper labour to make what would be a marginal project in Oz, a profitable one there.  Obusi was only producing about 200-250k ounce pa but was employing around 5o00 workers.  At those wage rates it had no chance.

The sooner that PRU gets rid of its contractor the sooner it can become profitable.  EVR has brought mining in-house where it could not get a satisfactory reduction in costs from its contractor and the outcome has been very positive so far.

loki