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1. Company Snapshot

1.a. Company Description

Perseus Mining Limited explores, evaluates, develops, and mines for gold properties in West Africa.The company primarily holds interests in the Edikan gold mine project located in Ghana; and Sissingué and Yaoure gold projects located in Côte d'Ivoire.Perseus Mining Limited was incorporated in 2003 and is based in Subiaco, Australia.

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1.b. Last Insights on PRU

Perseus Mining Limited's recent performance was driven by robust growth in gold production, efficient cost management, and a significant rise in shareholder returns. The company's strong Q2 FY25 results, which included a 22% increase in profit to US$201M, were a key positive driver. Additionally, the company's decision to develop the CMA underground project at the Yaouré Gold Mine in Côte d'Ivoire, with a final investment decision taken in January 2025, is expected to contribute to future growth. Furthermore, the company's cash and bullion balance of US$704 million as of December 31, 2024, provides a solid financial foundation for future investments.

1.c. Company Highlights

2. Perseus Mining's FY25 Results: Strong Performance Driven by Elevated Gold Prices

Perseus Mining reported a strong financial performance in FY25, driven by elevated gold prices and operational consistency. Revenue surged 22% to $1.2B, while profit after tax increased 16% to $421M. Earnings per share (EPS) rose 14% to $0.272, slightly above analyst estimates. The company's all-in site costs rose to $1,235/oz, but higher gold prices delivered a $1,308/oz cash margin, generating $650M notional cash flow and $827M in net cash/bullion.

Publication Date: Sep -07

📋 Highlights
  • Revenue & Profit Growth: Revenue surged 22% to $1.2B, with profit after tax rising 16% to $421M.
  • Cash Flow & Net Cash: Notional cash flow hit $650M, and net cash/bullion reached $827M.
  • Dividends & Buybacks: Dividends increased 50% to $0.075/share, with $83.6M spent on buybacks and $100M planned for FY26.
  • Sustainability Metrics: TRIFR safety rate fell to 0.6% (-43%), and $813M was invested in host communities.
  • Project Progress: CMA Underground advanced, and Nyanzaga secured regulatory approvals, targeting first gold in January 2027.

Valuation Metrics

The company's valuation metrics indicate a reasonable price for its earnings. The P/E Ratio stands at 10.51, while the P/B Ratio is 2.16. The EV/EBITDA ratio is 4.63, suggesting a relatively low valuation for its enterprise value. The Dividend Yield is 1.47%, and the Free Cash Flow Yield is 9.07%, indicating a decent return for investors.

Operational Highlights

Operationally, Perseus Mining achieved a production level of around 500,000 ounces, with a slight decline of 2.6% compared to FY24. The company's safety metrics improved, with a TRIFR of 0.6% and zero fatalities. The company also made significant progress on its projects, including CMA Underground and Nyanzaga, with first gold production expected in January 2027.

Capital Returns and Sustainability

Perseus Mining returned capital to shareholders through a $0.075/share dividend and an $83.6M share buyback. The company also emphasized its commitment to sustainability, with $813M in host community economic contributions. The company's leadership transition, with Jeff Quartermaine retiring and Craig Jones taking over, is expected to maintain the company's focus on delivering results.

Outlook

The company's outlook remains positive, with analysts estimating a revenue growth of 2.6% in the next year. The company's strong financial performance and operational highlights position it well for future growth. As Lee-Anne de Bruin noted, the agreements signed with the Tanzanian government for Nyanzaga are "rock solid," ensuring smooth operations and a strong foundation for future success.

3. NewsRoom

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Perseus Mining Makes $1.3 Billion Offer to Buy Predictive Discovery

Dec -03

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Perseus Mining Delivers Superior Proposal for Predictive Discovery

Dec -02

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Painful week for retail investors invested in Perseus Mining Limited (ASX:PRU) after 11% drop, institutions also suffered losses

Oct -29

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Perseus Mining September Quarter Report

Oct -26

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Appointment of Managing Director and Chief Executive Officer

Oct -01

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Perseus Mining (PMNXF) Receives Approval for Underground Mine at Yaouré, Côte d’Ivoire

Sep -30

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Perseus receives presidential decree for underground project at Yaoure mine

Sep -22

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Perseus secures approvals for underground mining at Yaoure

Sep -19

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4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (0.83%)

6. Segments

Yaoure

Expected Growth: 0.8%

Yaoure's 0.8 growth driven by increasing gold prices, improved mining efficiency, and successful exploration activities. The mine's low-cost production and high-grade ore reserves also contribute to its growth. Additionally, Perseus Mining Limited's strong management team and strategic investments in West Africa support the segment's expansion.

Edikan

Expected Growth: 0.9%

Edikan's 0.9 growth driven by increased gold production, improved ore grades, and enhanced processing plant performance. Additionally, cost savings from operational efficiencies and favorable foreign exchange rates contribute to the growth. The mine's life extension and exploration success also support the growth momentum.

Sissingue

Expected Growth: 0.7%

Sissingue's 0.7 growth driven by increasing gold production, improved ore grades, and enhanced processing plant efficiency. Strong mining operations, favorable geology, and effective cost management also contribute to growth. Additionally, Perseus Mining's experienced management team and strategic investments in exploration and development support long-term growth prospects.

7. Detailed Products

Gold

Perseus Mining Limited is a gold producer that operates several gold mines in West Africa. The company's gold production is a significant contributor to its revenue.

Silver

As a by-product of gold mining, Perseus Mining Limited also produces silver, which is sold to industrial and jewelry manufacturers.

Copper

Perseus Mining Limited's gold mines also produce copper as a by-product, which is sold to manufacturers of electrical wiring and other copper products.

Exploration Services

Perseus Mining Limited offers exploration services to other mining companies, using its expertise and resources to identify and develop new mineral deposits.

Mining Services

Perseus Mining Limited provides mining services to other mining companies, including mine management, construction, and operations.

8. Perseus Mining Limited's Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Perseus Mining Limited is medium due to the availability of alternative mining companies and the ease of switching costs for customers.

Bargaining Power Of Customers

The bargaining power of customers for Perseus Mining Limited is low due to the company's strong market position and the lack of buyer concentration.

Bargaining Power Of Suppliers

The bargaining power of suppliers for Perseus Mining Limited is medium due to the presence of multiple suppliers and the company's moderate dependence on them.

Threat Of New Entrants

The threat of new entrants for Perseus Mining Limited is high due to the attractiveness of the mining industry and the relatively low barriers to entry.

Intensity Of Rivalry

The intensity of rivalry for Perseus Mining Limited is high due to the presence of several established competitors and the high stakes involved in the mining industry.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 0.20%
Debt Cost 8.90%
Equity Weight 99.80%
Equity Cost 8.90%
WACC 8.90%
Leverage 0.20%

11. Quality Control: Perseus Mining Limited passed 8 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Lundin Gold

A-Score: 6.5/10

Value: 1.9

Growth: 9.1

Quality: 8.6

Yield: 6.0

Momentum: 10.0

Volatility: 3.7

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Perseus Mining

A-Score: 6.5/10

Value: 3.4

Growth: 6.6

Quality: 8.4

Yield: 1.7

Momentum: 9.5

Volatility: 9.3

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OceanaGold

A-Score: 6.2/10

Value: 2.8

Growth: 7.1

Quality: 8.1

Yield: 0.0

Momentum: 10.0

Volatility: 9.0

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Kinross Gold

A-Score: 6.0/10

Value: 4.3

Growth: 7.2

Quality: 8.0

Yield: 2.0

Momentum: 10.0

Volatility: 4.7

1-Year Total Return ->

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Resolute Mining

A-Score: 5.0/10

Value: 2.4

Growth: 5.2

Quality: 6.8

Yield: 0.0

Momentum: 8.5

Volatility: 7.3

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Karora Resources

A-Score: 4.2/10

Value: 1.9

Growth: 7.4

Quality: 6.6

Yield: 0.0

Momentum: 6.0

Volatility: 3.3

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

4.97$

Current Price

4.97$

Potential

-0.00%

Expected Cash-Flows