Release Date: August 27, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Perseus Mining Ltd (PMNXF, Financial) produced nearly 510,000 ounces of gold, meeting their guidance range.
- The company achieved an average gold sales price of USD2,014 per ounce, contributing to a cash margin of USD9.61 per ounce.
- Perseus Mining Ltd (PMNXF) generated USD1 billion in revenue, a 7% increase from the previous year.
- The company ended the financial year with USD587 million in cash and bullion, indicating strong liquidity.
- A final dividend of AUD0.0375 per share was declared, bringing the total distribution for FY24 to AUD0.05 per share.
Negative Points
- Gold production was slightly down compared to FY23, impacted by lower output at Edikan and Yaouré.
- All-in-site costs increased to USD1,053 per ounce, driven by higher production costs.
- The average gold sales price was slightly below the average spot rate for the 12 months.
- The company faced underperformance from the mining contractor at Yaouré, impacting costs.
- Guidance for the next six months indicates higher all-in-site costs between USD1,230 to USD1,330 per ounce.
Q & A Highlights
Q: Can you provide more details on the financial performance for FY24?
A: Lee-Anne De Bruin, CFO: Perseus Mining generated USD1 billion in revenue, a 7% increase from the prior year, driven by higher gold prices. Profit before tax rose 22% to USD467 million, and profit after tax was USD364 million. Operating cash flow was USD429 million, contributing to a 9% increase in net tangible assets to USD1.2 billion. The company declared a final dividend of AUD0.0375 per share, totaling AUD0.05 per share for the full year.
Q: What were the production and cost metrics for FY24?
A: Lee-Anne De Bruin, CFO: Gold production was approximately 510,000 ounces, within the guidance range of 421,000 to 517,000 ounces. The all-in sustaining cost (AISC) was USD1,053 per ounce, slightly higher due to a 5% decrease in production and increased production costs. The average gold sales price was USD2,014 per ounce, resulting in a cash margin of USD9.61 per ounce and a conversion cash flow of USD490 million.
Q: What is the outlook for the next six months?
A: Lee-Anne De Bruin, CFO: For the six months ending December 2024, Perseus Mining expects gold production between 220,000 to 260,000 ounces and an AISC of USD1,230 to USD1,330 per ounce. This reflects increased mining activities at Yaouré to address the FY24 deficit and a transition to a new mining circuit.
Q: Can you elaborate on the Nyanzaga Gold Project in Tanzania?
A: Jeffrey Quartermaine, CEO: The Nyanzaga project is a significant acquisition for Perseus, located in a prolific mining region. We have received strong support from the Tanzanian government and are progressing towards a final investment decision by December 2024. Key activities include resource definition drilling, feasibility studies, and early site works, with major construction expected to start in January 2025.
Q: What are the plans for the CMA underground project at Yaouré?
A: Jeffrey Quartermaine, CEO: The CMA underground project is on track for a final investment decision in October 2024. We are recruiting a skilled team and selecting an underground mining contractor. Initial works will begin in early 2025, with commercial production expected by April 2027. The project aims to integrate seamlessly with existing open-pit operations.
Q: How is Perseus Mining managing its capital and liquidity?
A: Lee-Anne De Bruin, CFO: Perseus ended FY24 with USD587 million in cash and bullion, and an undrawn USD300 million debt facility. The company has declared a final dividend and plans to undertake a AUD100 million share buyback. These measures, along with a strong balance sheet, position us well to fund organic growth and opportunistic M&A activities.
Q: What are the key sustainability initiatives and achievements?
A: Lee-Anne De Bruin, CFO: Perseus has improved safety performance and increased economic contributions to local communities by 7% to USD717 million. We made USD3.6 million in community contributions, with local and national employment stable at 96%. Female employment increased by 12%. Environmental initiatives include managing greenhouse gas emissions and ensuring tailings integrity.
Q: How does Perseus Mining plan to enhance its asset portfolio?
A: Jeffrey Quartermaine, CEO: We are focused on both organic growth and opportunistic M&A. In FY24, we invested USD195 million in the Nyanzaga Gold Deposit and USD39 million in near-mine exploration. We also increased our stake in predictive assets, investing USD54 million to acquire a 30.8% interest in projects in August 2024. Our liquidity position supports these growth initiatives.
Q: What are the key takeaways from Perseus Mining's FY24 performance?
A: Jeffrey Quartermaine, CEO: Perseus had a strong year, achieving significant financial and operational milestones. We generated substantial free cash flow, declared dividends, and planned a share buyback. Our growth projects, including the CMA underground and Nyanzaga, are progressing well. We remain committed to delivering value to our stakeholders through prudent capital management and strategic growth.
Q: What are the future growth prospects for Perseus Mining?
A: Jeffrey Quartermaine, CEO: Perseus is well-positioned for future growth with a robust balance sheet and a clear strategy. We aim to continue delivering strong operational performance, advancing key projects, and exploring new opportunities. Our focus remains on generating significant benefits for all stakeholders while maintaining financial and operational excellence.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
