African-focused gold miner Perseus Mining (ASX:PRU) on Wednesday announced a higher dividend and share buyback, reflecting the company’s robust financial performance. The surge in global gold prices during the past year significantly boosted revenue and earnings.
Profit after tax climbed 14% to a record $US364.8 million ($A536.94 million) on a 7% increase in revenue to $US1.025 billion. Gold sales, while slightly down 5% to 508,669 ounces, remained within the company’s guidance range of 491,000 to 517,000 ounces.
The company’s All-in Sustaining Cost (AISC) rose 10% to $US1,053 per ounce, driven by a 12% increase in the average gold price to $US2,014 per ounce. With gold prices currently exceeding $US2,500 per ounce, Perseus is well-positioned for further growth in revenue and earnings during the new financial year.
The higher dividend and share buyback contributed to a 6% increase in Perseus’ share price. The company declared a final dividend of 3.75 Australian cents per share, bringing the total dividend for the year to 5 Australian cents per share, up from 3.54 cents in the previous year.
Perseus also announced an on-market share buyback of up to $US100 million, commencing on September 24 and lasting for 12 months.
The company reiterated its guidance for the six months ending December 2024, forecasting production of 220,000 to 260,000 ounces at an AISC of $US1,230 to $US1,330 per ounce. Perseus stated that it is “comfortably on track” to meet both production and cost targets for the December half and the full year 2024.
Perseus Chairman and CEO Jeff Quartermaine commented, “In determining these capital returns, we have considered the significant capital investment program that lies ahead as we work to enhance the quality of our asset portfolio through the development of the Nyanzaga Gold Project in Tanzania, the CMA Underground Project in Cote d’Ivoire, and potentially the Meyas Sand Gold Project in Sudan.”
The Nyanzaga gold project, acquired through the purchase of ASX-listed OreCorp, represents a major focus for Perseus going forward. The company holds an 80% contributing interest in the project.
Perseus has a strong financial position, with $587 million in cash and gold on hand at June 30 and no debt.