Perseus Mining boosts profit, dividend on strong gold price
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The news: Perseus Mining boosted its full-year profit as its average gold sales price surged 14% in FY25, while the Africa-focused gold producer unveiled a $100 million share buyback.
The numbers: Profit after tax rose 14% year on year to USD364.8 million ($536.94 million). Revenue grew 7% to USD1.025 billion while EBITDA was up 13% to USD625.2 million.
Gold sales were down 5% to 508,669 ounces, but met its guidance range of 491,000 to 517,000 ounces, while all-in site costs (AISC) rose 10% to USD1,053 per ounce. However, this was offset by an average gold price of USD2,014 per ounce, 12% higher than in FY23.
Perseus declared a total dividend of 5 cents per share, up from 3.54 cents per share in FY23. The gold miner also announced plans for an on-market share buyback of up to $100 million to begin on 24 September, with completed within 12 months.
The context: Perseus noted that the company became the 100% owner of ASX-listed OreCorp during the fourth quarter, and as a result gained an 80% contributing interest in the Nyanzaga gold project in Tanzania.
It reiterated guidance for the six months to December 2024, comprising production of 220,000 to 260,00 ounces at AISC of USD1,230 to USD1,330 per ounce.
What they said: On the increased dividend and share buyback, Perseus chairman and CEO Jeff Quartermaine said: "In determining these capital returns, we have taken into account the very significant capital investment programme that potentially lies ahead for Perseus as we work to improve the quality of our asset portfolio by developing the Nyanzaga Gold Project in Tanzania, the CMA Underground Project in Cote d'Ivoire and potentially the Meyas Sand Gold Project in Sudan".
The source: ASX announcement
