Rising gold prices have lured investors into realm of Gold Investing. With stock markets on the run, astute investors are gravitating towards Gold Stock Market also.
In such a scenario, Top Gold Companies like Perseus Mining Limited become significant with a view to hedge the portfolio and for diversification.
Perseus Mining Limited (ASX: PRU)
Perseus Mining Limited is strategically pursuing a substantial geographical expansion of its operations, focusing primarily on regions such as Saudi Arabia and various African countries, including Ethiopia, Egypt, and Sudan. Currently, the company's operations are specifically concentrated in Ivory Coast and Ghana
The company has seen a substantial increase in production rates year after year from its current operating base, and it also has ambitious long-term expansion plans
The diverse range of mines currently operated by the company has consistently contributed to substantial financial gains and productivity for its stakeholders.
Perseus Mining Limited in its annual results for the fiscal year 2024 ended 30 June 2024, announced revenues of US$1.025 billion for the fiscal year 2024, reflecting a 7% increase from the previous year's revenue of US$960.4 million. It achieved a net profit after tax of US$364.8 million, representing a 14% rise compared to the US$321.0 million recorded in the prior financial year.
During FY24, the operating cash flow generated totalled US$429.2 million, which is a modest increase of 1% from FY23, equating to 31.26 US cents per share and US$844 per ounce.
As of 30 June 2024, the Company reported net tangible assets of US$1.217 billion, or US$0.89 per share, alongside a cash and bullion balance of US$587 million, with no debt outstanding.
Additionally, the company declared a final unfranked dividend of 3.75 Australian cents per share, amounting to $51.5 million (approximately US$34.7 million). When combined with the interim dividend of 1.25 Australian cents per share announced in February 2024, the total dividend for FY24 reaches 5.00 Australian cents per share, yielding an annual dividend of 2.1%.
Furthermore, Perseus has expressed its intention to initiate an on-market share buy-back. Considering the anticipated future operating and cash flow needs, the company has sanctioned a buy-back program of up to A$100 million, set to commence around 24 September 2024, and expected to conclude within a year.
The company is one of the High Growth Stocks, pursuing optimistic growth strategies, particularly as its CMA Underground Project progresses toward the Final Investment Decision (FID), expected by the end of September 2024. The project aims to initiate first production by August 2026, with commercial production scheduled for April 2027. Concurrently, the Nyanzaga Gold Project is also advancing significantly, with the goal of achieving first gold production and ramp-up by 2027.
Perseus is effectively leveraging the rising gold prices, which have yielded positive financial results from its existing operations, thereby ensuring steady distribution growth for its shareholders. Additionally, the company possesses promising long-term scalability potential, with several emerging gold projects nearing commercialization in the upcoming years. The commitment to enhancing shareholder value is particularly noteworthy and is anticipated to lead to substantial capital appreciation for stakeholders in the years ahead
Source: Company’s Report
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