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Highlights

  • Perseus Mining is an ASX-listed gold production, development and exploration firm which operates three gold mines in Africa
  • In FY23, the company recorded 70.3% YoY increase in profit after tax and 26.7% surge in revenue
  • Van Eck Associates Corporation has the maximum stake in the company with a shareholding of ~9.92%

Established in 2004, Perseus Mining Limited (ASX: PRU) an Australia-based company, is engaged in gold production, development, and exploration. The company conducts mineral exploration and assessment activities in Africa. Its operations include three gold mines in Africa. It also owns the Meyas Sand Gold Project, situated in Sudan.

The AUD 2.42-billion-market-cap company registered 70.3% YoY rise in its profit after tax to AUD 476.7 million in the financial year 2023 (FY23). The period saw a 26.7% rise in revenue to AUD 1,426.4 million and 65.2% YoY increase in cash and bullion to AUD 786 million.

In FY23, the Yaoure mine of the company surpassed the performance expectations, as it delivered gold production of 273,941oz. Gold sales stood at 537,564oz in FY23. 

Top 10 shareholders of PRU

The top 10 shareholders of PRU have around 37.80% of the shareholding in the company and the top four have nearly 24.74% of the shareholding. The top two shareholders of PRU are Van Eck Associates Corporation and Dimensional Fund Advisors, L.P., with a shareholding of ~9.92% and ~4.99%, respectively.

Recent business update

On 12 February 2024, the company informed through an ASX-update that it had made an off-marker takeover bid for the existing and to be issued shares in OreCorp Limited (ASX: ORR). The company highlighted through the supplementary bidder’s statement that it expects to get unconditional merger control approval.

In January 2024, the company released its second quarter results for FY24. During the three-months period, the company recorded gold production of 128,773oz, which took the first half gold production to 261,577oz. During the quarter, gold sales surged to 135,137oz.

Outlook

In the second half of FY24, the company expects to deliver gold production of 226,000 – 254,000oz at an AISC of USD 1,180-1,340/oz and in FY24, the expected range of gold production is 491,000 – 517,000oz at an AISC of USD 1,000 – 1,100/oz.

The company presently has 19.9% interest in the ASX-listed company, OreCorp and aims at having 100% shareholding of the company.

The company’s focus is on tapping acquisition opportunities, in existing production capacity or pre-development phase. The company intends to upgrade the size, geographical distribution and quality of its asset portfolio.

Share performance of PRU

PRU shares closed 0.9% higher at AUD 1.68 apiece on 13 February 2024. Including today’s gain, PRU’s share price has decreased by 12.04% in the past one year and has declined by almost 20.75% in the last nine months.

The 52-week high of PRU is AUD 2.51, recorded on 14 April 2023, while the 52-week low is AUD 1.5, recorded on 6 October 2023.

Note 1: Past performance is neither an Indicator nor a guarantee of future performance.

Note 2: The reference date for all price data, and currency, is 13 February 2024. The reference data in this report has been partly sourced from REFINITIV.