Perseus Mining Ltd (ASX:PRU, TSX:PRU, OTC:PMNXF) has outlined key achievements and strategic initiatives in its latest annual report, released today, which reflects a year of financial growth, expanded exploration horizons and enhanced partnerships.
Strong financials
The company says it delivered record financial results in the reporting period.
Gold production remained strong, with more than 500,000 ounces per annum achieved for the fourth consecutive year, amounting to 509,977 ounces in FY24.
The all-in site cost (AISC) was US$1,053 per ounce, while the average sale price per ounce increased to US$2,014, marking an 11.7% rise from FY23.
As a result, Perseus recorded a notional cash flow of US$490 million, an 8.4% increase from the previous year.
The company’s cash and bullion holdings rose to US$587 million, up 12.5% year-on-year, with zero debt and a US$300 million undrawn facility.
Operationally, Perseus generated an operating cash flow of US$429.2 million, up 1% from FY23, and reported a profit after tax of US$364.8 million, a 14% improvement on the previous year.
"Record results"
Chairman and CEO Jeff Quartermaine said: “The record financial results that have been delivered by Perseus this financial year reflect the strong gold price environment in which we are currently operating as well as our continued strong, consistent and safe operating performance at all levels of our business throughout the year."
Shareholders will benefit from a final dividend of 3.75 cents per share (A$). The company's mineral resources remain strong, with measured and indicated resources standing at 4.9 million ounces of gold and proved and probable ore reserves totalling 2.9 million ounces.
The successful off-market takeover of OreCorp Ltd has also expanded Perseus's portfolio, bringing in the large-scale Nyanzaga Gold Project in Tanzania, which offers further growth potential.
Mining developments
The company's focus remains on resource inventory improvements at Yaouré, Edikan and Sissingué, while it also remains committed to exploring new opportunities to ensure sustained profitability and resilience, regardless of gold price fluctuations.
During the year, Perseus focused on extending the life of its existing mines, which resulted in good progress at the Yaouré Gold Mine in Côte d'Ivoire.
The company is on track for its first underground development below the CMA open pit and has made a promising new discovery nearby, named Zain.
All this points to the potential for the CMA ore body to deliver more gold than initially expected.
Perseus has also achieved positive outcomes at Fimbiasso, a satellite deposit near the Sissingué Gold Mine, where recent drilling is expected to lead to a new mineral resource estimation.
At the Edikan Gold Mine in Ghana, Perseus is evaluating adjacent exploration permits.
With gold prices having risen significantly since the mine began operations in 2012, deposits previously deemed uneconomic may now meet the company's financial targets.
Perseus is also exploring opportunities for growth beyond its current operations.
The company has signed a cooperation agreement with Ajlan Bros Mining and Metals Company (ABM), part of the Saudi Arabia-based Ajlan Brothers conglomerate.
This agreement paves the way for joint investments in mining projects in Saudi Arabia and across the African continent, including potential ventures in Algeria, Eritrea, Ethiopia, Egypt and Sudan.
Perseus also made some leadership changes during the reporting period, including the departure of former chair Sean Harvey and non-executive director David Ransom and the appointment of Rick Menell, a seasoned non-executive independent director with deep mining and cultural experience in Africa.
On the horizon is the continued development of PRU’s Nyanzaga Gold Project in Tanzania and the potential advancement of the MSGP project.
ESG contributions
Perseus made a significant total economic contribution of US$717 million to host countries, an increase from US$537 million in FY23.
The company improved its local procurement efforts, sourcing 87% of its supplies locally, up from 79% in FY23.
Safety performance also showed progress, with the total recordable injury frequency rate (TRIFR) reducing to a 12-month rolling average of 1.06 as of 30 June 2024, down from 1.2 in the previous year.
On the diversity front, Perseus achieved executive gender diversity of 50%, with the board also reflecting an increased gender balance.