Perseus grows full-year profit, introduces dividend

Subiaco-based Perseus Mining has reported a 48 per cent jump in net profit to almost $140 million, after commissioning its third mine and boosting production.

Perseus, which has operations in Côte d’Ivoire and Ghana, reported sales revenue of almost $680 million in the year to June 30, up 15 per cent on FY20.

Its underlying earnings grew 11 per cent to $303 million.

The company attributed the gains to increased production and a higher gold price, which has remained above $US1,700 per ounce in recent months.

In December, Perseus commissioned a third goldmine, Yaouré, which is located in central Côte d’Ivoire. It gained the mine when it merged with Amara Minerals in 2016.

Perseus said Yaouré, along with increased production at its Sissingué operation (also in Côte d’Ivoire) helped to offset lower output at the Edikan mine in Ghana.

The company expects to produce up to 446,247oz this calendar year.

Managing director Jeff Quartermaine said Perseus would be targeting more than 500,000oz in FY22.

The company has declared its first dividend of 1.5 cents per share, representing an $18 million payout.

“The declaration of this maiden return of capital reflects the company’s growing confidence in its ability to generate meaningful cashflow from its operations and have sufficient funds available after managing its balance sheet and funding future growth of the business to return capital to shareholders on a consistent basis,” Mr Quartermaine said.

Perseus ended the financial year with a cash balance of $74.7 million.

The dividend will be distributed via a capital reduction, subject to shareholder approval which Perseus intends to seek at the company’s AGM in November.

Its share price closed up 0.5 per cent today to $1.47.