Perseus reports record earnings

The ASX- and TSX-listed miner reported record earnings before interest, taxes, depreciation and amortisation of $273.8-million for the 12 months to June, a 67% increase on the previous financial year.

Sales revenue for the period was up 16%, to $591.2-million, despite gold production declining slightly from 271 824 oz to 257 639 oz. The average price for the gold sold increased from $1 257/oz to $1 457/oz.

Net profit after tax for the full year was up 1 146%, to $94.4-million, compared with the $7.5-million in 2019.

CEO and MD Jeff Quartermaine said on Wednesday that the 2020 financial results were impressive by most measures, and indicated that the company was in a very healthy position, and continuing to improve in all aspects of the business.

“At $273.8-million, the 2020 gross profit from operations before depreciation and amortisation continues a recent trend on material improvement relative to the prior year, and after bringing various charges, including depreciation and amortisation of $134.1-million to account, our reported net profit after tax earnings was a credible $94.4-million, or 8.1c a share, nearly 12.5 times the after-tax profit of $7.6-million earned in the last financial year.”

Quartermaine said that the company was well on track to continue delivering value for shareholders.

“With Yaouré coming on stream from the 2022 financial year, Perseus’s production levels should be in the order of 500 000 oz of gold per year. With a continued strong gold price, Perseus will be in a position to generate even more material amounts of free cash flow than it has done in 2020 and record significant profits that will enable the company to continue to grow, manage its balance sheet and potentially start returning cash to shareholders via a future dividend stream.”