Reporting Season

Perseus profits double as third gold mine comes online

Wed 23 Feb 22, 12:49pm (AEST)
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Key Points

  • Perseus is now producing gold at 500,000 ounces of gold per annum
  • The new Yaoure mine is expected to bolster future growth
  • Key financial drivers for 2H include debt reduction initiatives, reduction in capex and further contributions from Yaoure

Perseus (ASX: PRU) is looking to join the big leagues after making significant progress towards becoming a multi-mine producer of more than 500,000 ounces of gold per annum.

However, the company's stock tumbled -6% as the market opened. Now down -2.5% at noon.

In the first-half of FY22, Perseus produced 241,164 ounces, up 76% compared to last year. This drove a broad increase in financial performance including:

  • Revenue of $545.7m, up 90% 

  • Profit after tax of $126.9m, up 159% 

  • Interim dividend of 0.81 cents per share  

“With three gold mines in operation, we are now producing gold at our targeted rate of approximately 500,000 ounces of gold per year, and with excellent drill results coming from our organic growth programmes we are confident of at least maintaining this level of production and associated profitability well into the future,” said CEO Jeff Quartermaine. 

Perseus said it had achieved a targeted gold production rate of 500,000 ounces per annum for the first time in FY22. All-in sustaining costs were US$949 per ounce for the first-half.

3rd mine bolsters output 

Persues’ Yaoure gold mine hit production status in late 2020, ramping up to full production by June 2021.

Yaoure is expected to produce an average of 260,000 ounces at an all-in sustaining cost of US$746 per ounce for the next three years. 

In addition to “outstanding opportunities for organic growth of mineral resources and mine life extension.”

Ounces of gold produced from Perseus mines
Source: Perseus Half Year Results Presentation

Full year outlook

For the full-year FY22, Perseus expects to produce between 471,000 to 506,000 ounces at an all-in sustaining cost between US$932-US$1,020.

Perseus pointed to key financial drivers for the second-half including debt reduction initiatives, reduction in capital expenditure and further contributions from Yaoure.

Written By

Kerry Sun

Finance Writer & Social Media

Kerry holds a Bachelor of Commerce from Monash University. He is an avid swing trader, focused on technical set ups and breakouts. Outside of writing and trading, Kerry is a big UFC fan, loves poker and training Muay Thai. Connect via LinkedIn or email.

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