Perseus Mining Ltd (ASX:PRU, TSX:PRU, OTC:PMNXF) recently reported a significant 21% increase in after-tax half-year profit, reaching US$164.7 million due to a robust gold price, making them a profitable mid-tier gold producer in the African market. The company saw improvements in key financial metrics such as revenue, EBITDA, profit after tax, cash flow, and net cash position, signaling a strong financial performance for the period ending December 31.
Perseus’s strategies, including its strong hedging strategy and favorable gold price environment, allowed them to offset increased costs and achieve substantial growth across their operations. Additionally, the company declared a 1.25 AUD cents per share interim dividend, showcasing their commitment to returning capital to shareholders while maintaining a balanced capital structure.
Looking forward, Perseus confirmed their market guidance for the 2024 financial year, targeting a gold production of 491,000-517,000 ounces at AISC of US$1,000-US$1,100 per ounce.
This financial report reflects the company’s ability to consistently deliver or surpass their targets, as highlighted by Perseus’s executive chairman and CEO, Jeff Quartermaine. The company further reinforced its strong financial position by ending the year with a net cash and bullion balance of US$642 million, which does not include their undrawn debt capacity of US$300 million and additional marketable securities worth US$60 million.
Furthermore, Perseus maintained steady gold production levels during the period, producing a total of 261,577 ounces across its various project sites. Gold sales also totaled 251,091 ounces at an average price of US$1,951 per ounce. While the company experienced a 4% decrease in gold sales compared to the previous half year, the higher average gold price led to a 13% increase in revenue.
This financial report demonstrates Perseus Mining’s ability to navigate a challenging operating environment while maximizing profitability. Additionally, the company’s solid financial position and strategic focus on gold production and cost efficiency position them well for sustained success in the gold mining sector.
