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Perseus shines amid gold surge: Reports 21% profit growth

Australian-based African gold miner Perseus (ASX:PRU) demonstrated significant growth amidst the surge in gold prices towards the end of 2023. The company reported a 21% rise in net profit for the six months to December, riding on a 10% increase in revenue to $US489 million (more than $A730 million).

Perseus, which is also pursuing OreCorp, another locally based miner with African gold mining ambitions, achieved this higher result against the backdrop of an interim dividend set at 1.25 A cents per share, marking a 15% increase from a year ago. EBITDA rose 18% to $US280.5 million, while profit after tax bounced 21% to $US164.7 million.

The company confirmed its full-year guidance at 491,000 to 517,000 ounces with an All In Sustaining Cost (AISC) of $US1,000 to $US1,100 a tonne. Despite challenges, Perseus produced 261,577 ounces from its three African mines at an AISC of $US979 an ounce.

Sales for the half-year totaled 251,091 ounces at an average price of $US1,951 per ounce. Perseus noted a 4% decrease in gold sales compensated by a 13% increase in price, contributing to solid revenue and earnings growth.

With net cash and bullion of $642.7 million at the end of December and no debt, along with an undrawn banking facility of $300 million and listed investments of $60 million, Perseus stands in a robust financial position.

Executive Chairman and CEO Jeff Quartermaine highlighted the company’s strong performance, stating, “Perseus has continued to cement our position as a profitable mid-tier gold producer that consistently delivers or exceeds our targets.” He emphasized the company’s after-tax earnings of approximately US$165 million and its operating cashflow of US$211 million, contributing to an increase in net tangible assets to US$1.3 billion, primarily due to a rise in cash balance.