Perseus Mining to cut production

Perseus Mining has indicated it is likely to miss its profit target for this year.

According to the company, its Edikan gold mine in Ghana has experienced problems that will lead to lower daily gold production.

The update from the company sent its share price plummeting -losing 15 cents, or 22.6 percent, to 51.5 cents.

Minor maintenance issues at Perseus' Edikan gold mine have reduced daily gold production, and the company now expects production in the second half of the 2012/13 financial year to fall below its previously issued guidance of at least 105,000 ounces.

Cash costs for the six months to June 30 are also likely to exceed the forecast of US$1,100 per ounce, Perseus said.

It also said it is reassessing its operating plans for the Edikan mine, because of the recent fall in gold price and a review of the company's cost structure.