Perseus profits rise as gold production increases

28th August 2019 By: Esmarie Iannucci - Creamer Media Senior Deputy Editor: Australasia

PERTH ( – Dual-listed gold miner Perseus Mining has reported a 19% increase in earnings before interest, taxes, depreciation and amortization (Ebitda) for the full year ended June, as its Sissingue project, in Côte d’Ivoire, reported its first full year of commercial production.

Gold production for the full year to June was up 6% on the previous financial year, to 271 824 oz, while all-in sustaining costs were down by 8% in the same period, to $960/oz.

The increased production and higher gold prices resulted in a 35% increase in revenues for the 2019 financial year, which increased from A$378-million to A$508.6-million.

Ebitda for the full year reached A$164.1-million, while net profits after tax increased by 130% to A$7.6-million, compared with a net loss after tax of A$24.9-million in the 2018 financial year.

“At A$164.1-million, our gross profit from operations before depreciation and amortization in 2019 is materially better than in the past. This year, our depreciation and amortization charge increased to A$153.3-million, impacting our reported net profit after tax earnings of A$7.6-million. That said, this result was A$32.5-million more than the amount earned in the last financial year,” said Perseus MD and CEO Jeff Quartermaine.

“Our net cash flow from operations increased by 114%, or A$77.9-million, to A$146.2-million during the year, and with cash and bullion on hand was valued at A$168.3-million at the end of the year; we are now in a strong net cash positive position after outstanding debt of A$44.8-million has been brought to account.

“This positive trend of net cash growth is well established and when considered together with the amount of undrawn debt finance available to the company, Perseus is fully funded to pay for the development of its third gold mine, Yaoure, which is now expected to produce first gold in December 2020.”

Quartermaine said that Perseus was well on track to continue delivering value to shareholders, with production levels expected to reach some 500 000 oz/y once Yaoure came onstream.

“Subject to the gold price at that time, this should mean that Perseus will be in a position to continue generating material amounts of free cash flow and record significant profits,” he said.