Perseus Mining (ASX:PRU) - Gold Operations Deliver 22% Profit Growth

Feb 25, 2025

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Interview with Jeff Quartermaine, Managing Director & CEO of Perseus Mining Ltd.

Our previous interview: https://www.cruxinvestor.com/posts/perseus-mining-asxpru-a1b-in-liquid-assets-growing-6623

Recording date: 24th February 2025

Perseus Mining Limited (ASX/TSX: PRU) has announced robust financial results for the half-year ending December 2024, demonstrating solid performance across its African gold operations. The company reported gold production of 253,709 ounces at an all-in site cost (AISC) of US$1,162 per ounce, positioning it in the upper half of its guided production range while keeping costs below expectations.

Financial highlights include revenue of US$581.8 million (up 19% year-on-year), profit after tax of US$201 million (up 22%), and EBITDA of US$352.7 million (up 26%). The company's earnings per ounce reached US$819, representing a 25% increase from the previous comparable period.
"What's really important from our perspective is that our earnings per ounce are around $819 per ounce, which is 25% higher than in the previous period," noted Jeff Quartermaine, CEO and Managing Director.

Perseus's financial strength is evident in its balance sheet, with US$704 million in cash and bullion as of December 31, 2024, an increase of US$117 million in just six months. The company maintains zero debt while having access to a US$300 million undrawn credit facility.

This strong position has enabled Perseus to double its interim dividend to 2.5 Australian cents per share and implement a share buyback program of up to A$100 million. As of February 10, 2025, the company had purchased 4,689,269 shares for approximately A$12.16 million.

Production was distributed across Perseus's three operating mines: Yaouré (123,158 ounces), Edikan (96,634 ounces), and Sissingué (33,917 ounces). For the June 2025 half-year, the company forecasts production between 215,000 and 250,000 ounces at an AISC of US$1,360-1,435 per ounce.

Perseus's growth strategy includes underground development at CMA in Côte d'Ivoire, advancement of the Nyanzaga Gold Project in Tanzania (scheduled to begin production in early 2027), and potential mine life extensions at existing operations.

The company employs a measured approach to gold price risk management, with approximately 24% of production hedged at US$2,500 per ounce while allowing the remaining 76% to benefit from current high spot prices.

"Our business is not about spending money; it's about generating benefits," Quartermaine emphasized, highlighting Perseus's disciplined approach to capital allocation.
With its robust financial position, operational efficiency, clear growth pathway, and commitment to shareholder returns, Perseus Mining appears well-positioned to navigate the opportunities and challenges of gold mining in Africa while capitalizing on the current favorable gold price environment.

View Perseus Mining's company profile: https://www.cruxinvestor.com/companies/perseus-mining