HIGHLIGHTS
• Perseus increased FY2021 net profit after tax by 48% to $139.4 million compared to FY2020
• FY2021 EBITDA of $303.1 million, was up 11% on FY2020
• Perseus will return 1.50 cents per share to shareholders, representing a 1% yield West African gold producer Perseus Mining Ltd (ASX/TSX: PRU) has released its Financial Report for the financial year ending 30 June 2021 (“FY2021”), during which it made significant progress towards achieving its goal of becoming a multi-mine, multi-jurisdictional producer of more than 500,000 ounces of gold per annum at a cash margin of not less than US$400/oz.
The Perseus Group recorded a net profit after tax of $139.4 million (9.57 cents per share) for the year, compared to $94.4 million in the previous financial year, a 47.6% improvement on FY2020.
Perseus also recorded EBITDA from operations in FY2021 of $303.1 million, an 11% increase compared to the previous financial year, reflecting an increase in sales revenue of 15% to $679.7 million and an increase in cost of sales of 19% to $376.7 million.
Perseus generated $302.0 million (24.6 cents per share) of operating cashflow during the year, resulting in a cash and bullion balance at year-end of $207.9 million, or $74.7 million, net of $133.2 million of outstanding debt.
At 30 June 2021, the Company’s net tangible assets amounted to $926.5 million, or $0.76 per share, approximately 10% more than at the end of the prior financial year.
The improvement in Perseus’s earnings, cashflow and financial position is predominantly due to:
• An increase in revenue resulting from higher gold prices combined with higher gold production, arising from increased production at Sissingué and gold produced at the newly commissioned Yaouré Gold Mine offset by lower gold production from Edikan.
• Depreciation and amortisation expense of $103.6 million, representing a decrease of 22% during the year, predominately due to 32% less ore mined at Edikan and 14.5% less ore mined at Sissingué.
• An income tax expense of $23.7 million compared to a $32.2 million expense in the prior year due to lower profits at Edikan; and
• A write-down and impairment expense of $6.8 million compared with $4.5 million in the previous year, that related mainly to exploration expenditure written off on near-mine targets at both Sissingué and Edikan due to the non-discovery of commercially viable resources.
In view of Perseus’sstrong financial performance during the 2021 financial year, and confidence in its continuing financial performance, the Company’s Board of Directors has implemented a Dividend Policy, commencing with a maiden return of capital to shareholders of 1.50 cents per share, representing a 1%(3) yield for FY2021.
During the financial year, Perseus successfully completed the construction and commissioning of its third gold mine, Yaouré, while maintaining steady operating performance at its two other gold mines, Sissingué and Edikan throughout the year.
Gold production by the Perseus Group during the year totalled 328,6321 ounces (up 27.6% on FY2020) at a weighted average all-in site cost (including production costs, royalties and sustaining capital) (“AISC”) of US$1,016/oz (4.5% up on the FY2020).
Gold sales2 by the Perseus Group during the year totalled 321,199 ounces of gold at an average sales price of US$1,642/oz. During the financial year, the group sold 18% more gold, at a price that was approximately 13% higher than in the 2020 financial year.
With its three gold mines now operating at full capacity, Perseus is well positioned to improve on its FY2021 financial performance in the coming financial year by continuing with solid gold production at each of its mines and focussing on improving each of their respective cost structures. Gold production and cost guidance for the December 2021 Half Year is as follows:
Parameter Units June 2021 Half Year (Actual)
December 2021 Half Year (Forecast) 2021
Calendar Year (Forecast) Yaouré Gold Mine
Production Ounces 59,438 130,000 – 140,000 189,438 – 199,438
All-in Site Cost USD per ounce 1,036 675 – 775 790 – 850
Sissingué Gold Mine
Production Ounces 48,763 25,000 – 35,000 73,763 – 83,763
All-in Site Cost USD per ounce 715 950 – 1,070 825 – 885
Edikan Gold Mine
Production Ounces 83,045 70,000 – 80,000 153,046 – 163,046
All-in Site Cost USD per ounce 1,213 1,350 – 1,450 1,270 – 1,330
PERSEUS GROUP
Production Ounces 191,246 225,000 – 255,000 416,247 – 446,247
All-in Site Cost USD per ounce 1,030 925 – 1,025 975 – 1,035
Notes:
1. Includes 62,125 ounces produced at Yaouré, 24,782 ounces of which was produced from commencement of operations in December 2020 but
prior to declaration of commercial production end of March 2021.
2. Includes 54,182 ounces sold by Yaouré at a weighted average sales price of $1,692/oz.
3. 1% yield is based on the PRU share price at 30 June 2021 of $1.46
CEO AND MANAGING DIRECTOR, JEFF QUARTERMAINE COMMENTS
“The financial results that Perseus has published today present further evidence of the transition of our company into a high quality, mid-tier, international gold company. FY2021 has been a transformational year for us, during which we have successfully brought our third gold mine, Yaouré, on stream and as importantly, converted our Group’s strong gold production into improved earnings and cashflow.
Looking to the future, we expect this trend of improved earnings and cashflow to continue as we close in on our corporate objective of producing more than 500,000 ounces of gold per year, a target that we expect to achieve for the first time in FY2022.
This year for the first time, we have also been able to start a programme of returning capital to our shareholders with the announcement of a capital return of 1.5 cents per share and a Dividend Policy to guide future returns to shareholders. The declaration of this maiden return of capital reflects the Company’s growing confidence in its ability to generate meaningful cash flow 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.”
This announcement was authorised for release by the Board. |
