Perseus Mining (ASX:PRU) FY24 Performance: Higher gold prices offset lower production

Highlights

• Despite slightly lower production in FY24, PRU’s revenue rose 7% YoY to USD 1.03 billion due to higher gold prices.
• Profit after tax surged 14% YoY to USD 364.8 million in FY24.
• The board declared interim dividend of 3.75 cents per share, totalling AUD 51.5 million.
• in FY25, the company expects gold production of 220,000–260,000 ounces at AISC of USD 1,230–1,330 per ounce.

Perseus Mining Limited (ASX:PRU) is a gold production company, engaged in discovering, acquiring and developing assets in Africa. In West Africa, the company operates three mines, and also undertakes mineral exploration and evaluation activities in the region.

In the financial year 2024 (FY24), although production at Edikan and Yaoure was slightly lower, revenue still increased by 7% YoY to USD 1.03 billion, largely due to higher gold prices. Moreover, in FY24, cost of sales fell because of reduction in production, and this was partially offset by a surge in cash operating costs.

During the reported period, profit after tax increased by 14% YoY to USD 364.8 million and operating cash flow jumped 1% YoY to USD 429.2 million.   

Given the FY24 financial performance, the board of PRU has announced FY24 dividend of 3.75 cents per share, totalling AUD 51.5 million. With this, total FY24 distribution reached 5 cents per share.

Further, the company announced an intent to conduct on-market share buy-back of AUD 100 million, to commence on 24 October 2024, expected to be concluded in 12 months.

Recent investments

Through an ASX update dated 6 September 2024, the company notified that it has increased its relevant interest in the issued capital of Predictive Discovery Limited (ASX:PDI) to 19.9%. To fund the transaction, the company used the proceeds from unwinding its previously announced cash-settled equity swap position in Predictive.    

Outlook

In the first half of FY25 ended 31 December 2024, the company expects to record gold production in the range of 220,000 – 260,000 ounces at an expected AISC of USD 1,230 – 1,330 per ounce.

The focus is on boosting production from its existing operations, especially from the Yaoure and Edikan mines. Moreover, PRU is actively exploring further projects and opportunities for growth.

Share performance of PRU

PRU shares closed at AUD 2.54 apiece on 8 October 2024. PRU’s share price surged by 57.76% over the last year, and by 3.67% in the past three months.

52-week high of PRU is AUD 2.81, recorded on 17 July 2024, and 52-week low is AUD 1.56, recorded on 13 October 2023.

PRU Daily Technical Chart, Source: REFINITIV

Note 1: Past performance is neither an Indicator nor a guarantee of future performance.

Note 2: The reference date for all price data, and currency, is 08 October 2024. The reference data in this report has been partly sourced from REFINITIV.

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