Perseus Mining Ltd (ASX:PRU, TSX:PRU, OTC:PMNXF) has boosted its after tax half year profit by 21% to US$164.7million, supported by a strengthened gold price.
The African focused gold producer, developer and explorer reported material improvements across all key financial metrics for the half year to December 31, including revenue, EBITDA, profit after tax, operating cash flow and net cash position.
EBITDA was up 18% to US$280.5 million, revenue increased to US$489 million — up 10% from a year earlier, operating cash flow increased to US$211.2 million, while its net cash and bullion increased to US$642 million. Perseus also noted that it has zero debt, with US$300 million undrawn debt capacity and an additional US$60 million worth of marketable shares.
While the company saw an increase in overall costs due to expected inflationary pressures, it benefited from its strong hedging strategy and the improving gold price environment, which has seen the group’s average sales price increase at a greater proportionate rate than its production costs.
The company declared an interim dividend of 1.25 AUD cents per share, equating to 1.33% annual dividend yield.
Looking ahead, Perseus confirmed market guidance for the 2024 financial year of 491,000-517,000 ounces at AISC of US$1,000-US$1,100 per ounce.
Production & costs outperform
Perseus executive chairman and CEO Jeff Quartermaine said: “With gold production and all-in site costs achieving and outperforming market guidance respectively, and strong performance across all key financial metrics, Perseus has continued to cement our position as a profitable mid-tier gold producer that consistently delivers or exceeds our targets.
“Our after-tax earnings of approximately US$165 million for the six-month period is an excellent result, as was our operating cashflow of US$211 million for the period along with the increase in net tangible assets to US$1.3 billion, predominantly due to an increase in our cash balance.
“We finished the December 2023 half year with net cash and bullion on hand of US$642 million which in terms of funding capacity does not include our US$300 million undrawn debt capacity or the additional US$60 million of marketable securities we hold.
“In addition, we have declared an interim dividend of 1.25 AUD cents per share as we return capital to our shareholders while maintaining a balanced capital structure and the ability to finance the enhancement of the quality of our asset portfolio through future growth.”
Gold production
During the quarter Perseus maintained its production levels, producing 261,577 ounces of gold at an all-in site cost (AISC) including production costs, royalties and sustaining capital, of US$979/ounce.
This included: 134,379 ounces produced at Yaouré at an AISC of US$805/ounce; 28,551 ounces produced at Sissingué at an AISC of US$1,719/ounce; and 98,647 ounces of gold produced at Edikan at an AISC of US$1,003/ounce.
Gold sales
Gold sales totalled 251,091 ounces of gold at an average sales price of US$1,951/ounce.
This result included: 132,688 ounces sold by Yaouré at a weighted average sales price of US$1,952/ounce; 24,120 ounces sold by Sissingué at a weighted average sales price of US$2,007/ounce; and 94,283 ounces sold by Edikan at an average sales price of US$1,933/ounce.
While the company sold 4% less gold during the half year, it was at a price that was around 13% higher than in the half year to December 21, 2022.