ASX- and TSX-listed Perseus Mining has made significant progress towards achieving its goal of becoming a multi-mine, multi-jurisdictional producer of more than 500 000 oz/y of gold at a cash margin of not less than $400/oz.

The West African gold producer on August 26 reported that it had recorded a net profit after tax of $139.4-million for the financial year ended June 30, a 47.6% increase on the net profit of $94.4-million reported for the previous financial year.

Perseus achieved an 11% year-on-year increase in earnings before interest, taxes, depreciation and amortisation from operations to $303.1-million, which reflects an increase in sales revenue of 15% to $679.7-million and a 19% increase in the cost of sales to $376.7-million.

The miner generated $302-million of operating cash flow during the year, resulting in a cash and bullion balance at year-end of $207.9-million, or $74.7-million, net of $133.2-million of outstanding debt.

At the end of the period, the company’s net tangible assets amounted to $926.5-million, or $0.76 a share, about 10% more than at the end of the prior financial year.

The miner attributed its positive earnings, cash flow and financial position to an increase in revenue resulting from higher gold prices and increased gold production from both its Sissingué and the newly commissioned Yaouré gold mines, as well as depreciation and amortisation expenses of $103.6-million, which were 22% higher year-on-year.

Additionally, Perseus had income tax expenses of $23.7-million owing to lower profits at Edikan.

A write-down and impairment expense of $6.8-million, which related mainly to exploration expenditure written off on near-mine targets at both Sissingué and Edikan owing to the non-discovery of commercially viable resources, also had an impact.

In view of Perseus’ strong financial performance during the 2021 financial year, and confidence in its continuing financial performance, the company’s board of directors has implemented a dividend policy.

The policy will start with a maiden return of capital to shareholders of $0.015 a share, representing a 1% yield for the financial year under review.

Meanwhile, during the financial year, Perseus successfully completed the construction and commissioning of its third gold mine, Yaouré, while maintaining steady operating performance at its two other gold mines, Sissingué and Edikan, throughout the year.

Gold production for the year totalled 328 632 oz, up 27% on the prior financial year, at a weighted average all-in site cost of $1 016/oz.

Gold sales totalled 321 199 oz of gold at an average price of $1 642/oz.

During the financial year, the group sold 18% more gold, at a price that was about 13% higher than in the 2020 financial year.

With its three gold mines now operating at full capacity, Perseus reiterated that it was “well positioned” to improve on its 2021 financial performance in the coming financial year by continuing with solid gold production at each of its mines and focussing on improving each of their respective cost structures.