Perseus Mining Ltd (ASX:PRU, TSX:PRU, OTC:PMNXF) has welcomed Rick Menell to the role of independent, non-executive chairman of the board.
The appointment is made with immediate effect, with Menell replacing interim executive chairman, Jeff Quartermaine, who resumes his former role of managing director and CEO.
Perseus undertook a wide-ranging search for its future leader, before landing on Menell.
“Rick has a deep understanding of the people and the mining industry on the African continent through a variety of family investments, as well as senior roles with leading South African corporates and nonprofit-sector enterprises and as a result, is perfectly suited to lead a growing, African focussed company like Perseus, that has ambitions to become a leader of the gold mining industry on the continent,” Quatermaine said.
“After a period of familiarisation with our operations, board, management and staff, Rick has now agreed to assume the role of non-executive, independent chair.
"This move, which is consistent with the requirements of Perseus’s Board Charter, was foreshadowed at the time of my elevation to the role of interim executive chairman in November 2023 and enables me to resume my former role of managing director and chief executive officer of the company.”
Quatermaine noted the smooth transition of leadership, which will now lead Perseus through its next phase of growth and as it looks to establish itself within the upper echelons of the global gold industry.
Record results
Perseus reported record financial results for the reporting period. The company maintained strong gold production, achieving over 500,000 ounces per annum for the fourth consecutive year, with a total of 509,977 ounces produced in FY24.
The all-in site cost (AISC) was recorded at US$1,053 per ounce, while the average sale price per ounce increased by 11.7% from FY23 to US$2,014. Consequently, Perseus Mining's notional cash flow grew by 8.4% to US$490 million.
The company’s financial position strengthened, with cash and bullion holdings rising by 12.5% year-on-year to US$587 million. Notably, Perseus remained debt-free and maintained a US$300 million undrawn facility.
Operationally, the company generated an operating cash flow of US$429.2 million, reflecting a 1% increase from FY23. The profit after tax improved by 14%, reaching US$364.8 million.
Valuation upside
A recent Argonaut research report highlighted Perseus’ potential valuation upside following the release of the company's annual resource and reserve statement for its three operating assets in West Africa: Edikan, Yaouré and Sissingue.
The report states that after accounting for mining depletions during the 2024 financial year, Perseus Mining's reserve base across these assets totals 2.9 million ounces. Argonaut has retained its ‘Buy Recommendation’ on Perseus Mining, slightly increasing its price target from $2.90 to $3.10 per share.
This adjustment is attributed to movements in gold prices and mine life extensions at Sissingue. The current share price is sitting around $2.54 per share.