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Highlights

  • Perseus Mining is a gold mining and exploration company which operates three mines in West Africa
  • In 1HFY24, the company reported 10% YoY jump in revenue and 20% YoY increase in profit after tax
  • Van Eck Associates Corporation has the highest stake in the company with the shareholding of nearly 9.92%

Perseus Mining Limited (ASX: PRU) is an ASX-listed company that operates as a gold mining and exploration company. Headquartered in Perth, Western Australia, Perseus Mining has a portfolio of three mines, located in West Africa. The multi-mine, multi-jurisdictional gold-focused company is also involved in conducting mineral evaluation and exploration activities in the region.

In the first half of the financial year 2024 (1HFY24), the company achieved its market guidance as gold production stood at 261,577 ounces, while gold sales stood at 251,091 ounces. In 1HFY24, revenue increased by 10% YoY to USD 489 million, profit after tax grew by 20% YoY to USD 164.7 million and operating ash flow surged by 2% YoY to USD 211.2 million.

The performance during the latest half was underpinned by an improvement in gold price environment and hedging strategy of PRU. Continued contributions came from Edikan, Sissingue and Yaoure mines during the reported period.

Top 10 shareholders of PRU

The top 10 shareholders of PRU have 37.79% stake in the company, while the top four have nearly 24.74% shareholding. Van Eck Associates Corporation has the maximum stake in the firm with a shareholding of ~9.92%.

Recent business update

On 25 March 2024, the fourth supplementary bidder’s statement was released. The statement highlighted that ASX-listed firm, OreCcorp Limited (ASX: ORR) has received an increased takeover offer from PRU of AUD 0.575 per ORR share. Shareholders of ORR have been advised to accept the updated offer in the absence of any other superior offer.

Outlook

The company expects to continue its trend of enhanced earnings and cash flow. In FY24, the company expects gold production to be in range of 491,000 to 517,000 ounces at an AISC of USD 1,000 – 1,100 per ounce.

The company intends to takeover OreCorp and for the same offer has been increased to AUD 0.575 per ORR share. ORR is engaged in operating the Nyanzaga Gold Project, located on northwest Tanzania.

Moreover, the company is engaged in advancing its organic growth campaign which aims at materially increasing the mineral reserves and resources inventory. 

Share performance of PRU

PRU shares closed 1.95% higher at AUD 2.09 apiece on 26 March 2024. Including today’s gain, PRU’s share price dropped by almost 10.30% in the last one year and has increased by 24.40% in the last one month.

The 52-week high of PRU is AUD 2.51, recorded on 14 April 2023, while the 52-week low is AUD 1.50 apiece, recorded on 6 October 2023.

PRU Daily Technical Chart, Source: REFINITIV

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 26 March 2024. The reference data in this report has been partly sourced from REFINITIV.