Revenue came in at $135.3 million from the sale of 93,686 ounces of gold.

The result follows a $32.5 million profit reported at the same time last year.

“In response to a falling gold price, Perseus adopted a production strategy aimed at minimising capital investment,” Perseus managing director Jeff Quartermaine said.

“This meant that part of our mill feed for the period was drawn 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 profits had dropped despite the productivity improvements, with the lower grade stockpiles reducing production and lower prices trimming margins.

“Looking forward, given the material productivity improvements made to our operation along with a reduction in our operating cost base during the last six months, we are now well positioned for the future, when in accordance with our updated life of mine plan higher grade ore will be available for processing.”

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

Breaking down the operations, Perseus said the profit drop was mainly due to a 9% decrease in production at the Edikan gold mine in Ghana due to the planned 28% drop in ore grade processed.

It said the realised sale price had dropped 12.5% per ounce relative to the same time last year.

Available cash came in at $16 million with no debt and $17.8 million was spent primarily on exploration at Edikan.

Perseus shares were up 2% to 49.5c.