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Perseus Mining’s Profits Soar: Record Growth Amidst Global Challenges

Substantial Increases in Earnings and Production Highlight Strong Half-Year

by Adenike Adeodun

Perseus Mining, a dual-listed entity on the ASX and TSX, has demonstrated a robust performance for the half-year period ending December 31, recording a notable 18% year-on-year increase in its earnings before interest, taxes, depreciation, and amortisation (EBITDA) to $280 million. Additionally, the company has seen a substantial 21% rise in its profit after tax, reaching $164 million. This financial upturn is complemented by the declaration of an interim dividend of A$0.0125, showcasing the company’s commitment to shareholder returns.

Reflecting on the previous financial year, which concluded on June 30, 2023, Perseus had announced a final dividend of A$0.0248, indicating a strategic approach to rewarding its investors. The mining giant also reported an impressive operating cash flow of $211 million for the reported period, further bolstering its financial stability and operational efficiency.

A significant highlight of Perseus’s half-year performance is the increase in its net tangible assets, which soared to $1.3 billion, equating to $0.94 per share. This represents a remarkable 33% enhancement from the prior corresponding period’s net tangible assets per ordinary share, which stood at $0.71. Such growth underscores Perseus’s solid asset base and its potential for future value creation.

Production metrics also paint a picture of steady operational performance, with interim gold production reaching 261,577 ounces at an all-in site cost of $979/oz. The production figures were buoyed by contributions from the company’s key mining operations, including 134,379 ounces from the Yaouré mine, 28,551 ounces from the Sissingué mine, and 98,647 ounces from the Edikan mine, located in Ghana, with the others in Côte d’Ivoire. Despite a slight 4% decrease in production compared to the previous six months, the company has managed to maintain robust production levels.

An encouraging aspect of Perseus’s financial narrative is the 13% year-on-year increase in the average gold sales price, which stood at $1,951/oz for the period in review. This favorable market condition has contributed significantly to the company’s improved profitability and financial health.

Jeff Quartermaine, the Chairperson and CEO of Perseus, expressed satisfaction with the company’s performance, highlighting that both gold production and all-in site costs have not only met but exceeded market expectations. His remarks underscore the company’s efficiency in operations and its ability to surpass financial and operational targets, reinforcing its status as a profitable mid-tier gold producer.

Financially, Perseus ended the half-year on a strong note, with net cash and bullion on hand amounting to $642 million. This does not include a $300 million undrawn debt facility, which provides additional financial flexibility and underscores the company’s solid liquidity position.

Looking ahead, Perseus Mining remains optimistic about its production outlook, projecting a gold output of between 491,000 ounces and 517,000 ounces for the full year ending June 30. This forecast reflects the company’s confidence in its operational capabilities and its strategic position to capitalize on market opportunities, continuing its trajectory of growth and profitability in the competitive gold mining sector.


Source: Mining Weekly

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