Perseus Mining (ASX:PRU) - Beating Consensus Estimates for Production & AISC

Company Interviews

Interview with Jeff Quartermaine, Chairman & CEO of Perseus Mining Ltd.

Our previous interview: https://www.cruxinvestor.com/posts/perseus-mining-asxpru-poised-for-growth-in-africa-beyond-5246

Recording date: 24th April 2024

Perseus Mining, an Australian gold producer focused on operating mines and development projects in Africa, continues to deliver solid performance while executing a balanced growth strategy. The company's recent quarterly results showcase its operational strength, while the acquisition of OreCorp's Nyanzaga project in Tanzania project will provide a clear path for future growth.

In Q1, Perseus produced 127,471 ounces of gold at an all-in sustaining cost of just over $1,000 per ounce, generating a robust margin of $934 per ounce. This translated to a notional cash flow of US$19 million for the quarter, further bolstering the company's already strong financial position. With over US$700 million in cash and no debt, Perseus is well-positioned to fund its growth initiatives and navigate potential market challenges.

The acquisition of the Nyanzaga project will mark a significant milestone for Perseus. On April 17th, Perseus passed 90% ownership of OreCorp, and on April 18th, the company commenced compulsorily acquiring all outstanding shares in OreCorp. The offer closed on 19 April 2024. Perseus’s senior management team has engaged with senior government official, key stakeholders and employees in Tanzania, all of whom have confirmed their strong support for Perseus’s investment in Tanzania and their commitment to helping Perseus achieve its aim of commencing commercial production of gold from the Nyanzaga Gold Mine.

In addition to the Nyanzaga, Perseus is actively reassessing optimization opportunities at its existing assets, particularly the Edikan mine in Ghana. By re-evaluating past decisions in light of the current high gold price environment, the company aims to enhance margins and returns from these operations.

Perseus has articulated a clear growth strategy, targeting a portfolio of at least four long-life mines with an ore reserve inventory of 10 to 12 million ounces. The company will pursue this goal through a combination of exploration, acquisitions, and development, funded by its strong cash position and ongoing cash generation from operations.

Investors should also take note of Perseus' disciplined approach to capital allocation. The company aims to return surplus cash to shareholders through dividends, with a current policy targeting an annualized yield of 1% and the potential for additional bonus dividends. However, Perseus remains open to other capital management options, such as capital returns or share buybacks, and will carefully evaluate these alternatives to maximize shareholder value.

With a consistent track record of operational performance, a strong financial position, a clear growth pipeline, and an experienced management team, Perseus Mining presents a compelling investment case in the gold mining sector. As the company continues to execute its strategy and unlock value from its assets, investors may find Perseus an attractive opportunity for exposure to a growing, financially robust African gold producer.

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View Perseus Mining's company profile: https://www.cruxinvestor.com/companies/perseus-mining

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