Perseus Achieves Profit After Tax of $126.9M for December 2021 Half Year
Perseus Achieves Profit After Tax of $126.9M for December 2021 Half Year
PERTH, Western Australia, Feb. 23, 2022 -- West African gold producer, Perseus Mining Limited (ASX/TSX:PRU), has
released its Interim Financial Report for the six months ending 31 December 2021 (“HY2021”) with significant improvement
across key metrics including revenue, EBITDA, profit after tax and operating cash flow, allowing Perseus to declare an interim
dividend of 0.81 cents Australian per share.
HIGHLIGHTS
• Revenue increased by 90% to A$545.7 million, on previous corresponding Half Year period
• EBITDA up 101% to $252.4 million and Profit After Tax up 159% period on period to $126.9 million
• Operating Cash Flow of A$245.9 million, up 137% on prior half year
• Declared interim dividend of 0.81 Australian cents per share
• Perseus has achieved targeted gold production rate of 500,000ozpa for the first time in FY22.
Perseus’s Managing Director and CEO Jeff Quartermaine said:
“Our financial results for the December 2021 half year are indicative of our strong operating performance at all levels of our
business during the period.
With three gold mines in operation, we are now producing gold at our targeted rate of approximately 500,000 ounces of gold
per year, and with excellent drill results coming from our organic growth programmes we are confident of at least maintaining
this level of production and associated profitability well into the future.
We have achieved these results in a West African setting with the COVID pandemic providing a backdrop, which I believe
speaks volumes of the efforts of individuals in our teams at the mines, in the field and in our offices across Africa and
Australia. It also underlines our collective commitment to our mission of creating material benefits for all of our stakeholders,
in fair and equitable proportions.”
COMMENTARY
During the six months to 31 December 2021, Perseus made significant progress towards becoming a multi-mine, multi-
jurisdictional producer of more than 500,000 ounces of gold per annum, at a cash margin of not less than US$400/oz.
Production rates continued to improve at Perseus’s third gold mine, Yaouré, making significant progress towards its
nameplate capacity. Consistent performance continued at Sissingué, while Edikan’s performance saw improvement towards
the end of the second quarter.
Gold production for the Group during the six months totalled 241,164 ounces at an all-in site cost (including production costs,
royalties and sustaining capital) (“AISC”) of US$949/oz. This result included: 139,747 ounces produced at Yaouré at an AISC
of US$687/oz; 34,132 ounces produced at Sissingué at an AISC of US$917/oz; and 67,285 ounces of gold produced at Edikan
at an AISC of US$1,509/oz.
Gold sales by the Group during the half-year totalled 238,136 ounces of gold at an average sales price of US$1,663/oz. This
result included: 139,724 ounces sold by Yaouré at a weighted average sales price of US$1,695/oz; 34,870 ounces sold by
Sissingué at a weighted average sales price of US$1,631/oz; and 63,541 ounces sold by Edikan at an average sales price of
US$1,608/oz. During the 6 months, the Group sold 87% more gold, at a price that was approximately 1% higher than in the
2020 comparative period.
At 31 December 2021, the Company’s net tangible assets amounted to $1,020.3 million, or $0.83 per share which is
approximately 18.6% more than at the end of the HY2020.
The Group’s net profit after tax for the period ended 31 December 2021, after bringing to account a foreign exchange loss, was
$126.9 million, up 159% on the comparative period (31 December 2020: $49.1 million). Gross profit from operations for the
period ended 31 December 2021 was up 91% on the comparative period to $153.4 million (31 December 2020: $80.5 million).
These significant increases are largely attributable to:
• A 90% increase in revenue on the comparative period to $545.7 million (31 December 2020: $286.7 million) from the
contribution Yaouré has made to the Group since achieving commercial production. This was supported by steady
performance from Sissingué, while Edikan underperformed during the period.
• Depreciation and amortisation expense of $99.0 million, a 118% increase on HY2020 largely due to declaration of
commercial production of Yaouré on 1 April 2021, requiring the depreciation and amortisation of the capitalised
development costs to commence.
• Finance costs increased to $5.4 million (HY2021) from $1.7 million (HY2020) as previously a portion of finance costs
were capitalised to the construction of the Yaouré Project which ended upon declaring commercial production on 1 April
2021.
• Administration and other corporate expenses increased to $8.5 million (HY2021) from $6.3 million (HY2020)
commensurate of the increased support associated with commissioning the Yaouré Gold Mine.
• The foreign exchange loss of $7.7 million in the current period compares to a loss of $13.2 million in the comparative
period. This is a result of the Australian dollar weakening against the United States dollar during the six months by
approximately 3%.
• Income tax expense of $1.6 million, a reduction of $6.8 million on HY2020.
The Group generated Net cash from operating activities for the six months ended 31 December 2021 of $245.9 million, up
137% on the comparative period (31 December 2020: $103.6 million).
As at 31 December 2021, Perseus had on-hand cash of $268.2 million, and 9,342 oz of gold bullion valued at $23.4 million.
During the period Perseus repaid in advance US$50 million of the revolving corporate cash advance facility (Corporate Facility),
with a remaining balance on that facility of US$50 million at 31 December 2021.
FY22 OUTLOOK
Looking to the future, Perseus expects this positive trend of improved earnings and cashflow to continue in line with our
corporate objective of producing more than 500,000 ounces of gold per year. Gold production and cost guidance for the
FY2022 is as follows:
PARAMETER UNITS
DECEMBER 2021
HALF YEAR
(ACTUAL)
JUNE 2022 HALF YEAR
(FORECAST)
2022 FINANCIAL YEAR
(FORECAST)
Yaouré Gold Mine
Production Ounces 139,747 130,000 - 140,000 269,747 - 279,747
All-in Site Cost USD per ounce 687 765 to 815 725 to 750
Sissingué Gold Mine
Production Ounces 34,132 25,000 to 35,000 59,132 – 69,132
All-in Site Cost USD per ounce 917 810 to 1,280 872 to 1,100
Edikan Gold Mine
Production Ounces 67,285 75,000 to 90,000 142,285 – 157,285
All-in Site Cost USD per ounce 1,509 1,210 to 1,430 1,350 to 1,465
PERSEUS GROUP
Production Ounces 241,164 230,000 to 265,000 471,164 – 506,164
All-in Site Cost USD per ounce 949 915 to 1,085 932 to 1,020
This announcement was approved for release by the Board.
ASX/TSX CODE: PRU
REGISTERED OFFICE:
Level 2
437 Roberts Road
Subiaco WA 6008
Telephone: +61 8 6144 1700
Email: [email protected]
WWW.PERSEUSMINING.COM
CONTACTS:
Jeff Quartermaine
Managing Director & CEO
Nathan Ryan
Media Relations
+61 4 20 582 887
COMPETENT PERSON STATEMENT:
All production targets referred to in this report are underpinned by estimated Ore Reserves which have been prepared by
competent persons in accordance with the requirements of the JORC Code.
Edikan. The information in this report that relates to AF Gap Mineral Resources and Ore Reserve estimate was first reported
by the Company in a market announcement “Perseus Mining Updates Mineral Resources and Ore Reserves” released on 26
August 2020. The information in this report that relates to the Mineral Resource and Ore Reserve estimates for the Fetish
deposit and the Heap Leach was first reported by the Company in a market announcement “Perseus Mining Updates Edikan
Gold Mine’s Mineral Resources and Ore Reserves” released on 20 February 2020. The Mineral Reserve and Ore Reserve
estimates for the abovementioned deposits were updated for depletion as at 30 June 2021 in a market announcement.
“Perseus Mining Updates Mineral Resources and Ore Reserves” released on 24 August 2021. The information in this report
that relates to Esuajah North Mineral Resources estimate was first reported by the Company in a market announcement
“Perseus Mining Updates Mineral Resources and Ore Reserves” released on 29 August 2018. The information in this report
that relates to the Mineral Resource and Ore Reserve estimates for Esuajah South Underground deposit was first reported by
the Company in a market announcement “Perseus Mining Updates Mineral Resources and Ore Reserves” released on 24
August 2021. The Company confirms that it is not aware of any new information or data that materially affect the information in
those market releases and that all material assumptions underpinning those estimates and the production targets, or the
forecast financial information derived therefrom, continue to apply and have not materially changed. The Company further
confirms that material assumptions underpinning the estimates of Ore Reserves described in “Technical Report — Central
Ashanti Gold Project, Ghana” dated 30 May 2011 continue to apply.
Sissingué, Fimbiasso, Bagoé. The information in this report that relates to Mineral Resource and Ore Reserve estimates for
the Fimbiasso deposits was first reported by the Company in a market announcement “Perseus Mining Updates Mineral
Resources and Ore Reserves” released on 26 August 2020. The information in this report that relates to Mineral Resource
and Ore Reserve estimates for the Sissingué and Bagoé deposits was first reported by the Company in a market
announcement “Perseus Mining Updates Mineral Resources and Ore Reserves” released on 24 August 2021. The Company
confirms that it is not aware of any new information or data that materially affect the information in these market releases and
that all material assumptions underpinning those estimates and the production targets, or the forecast financial information
derived therefrom, continue to apply and have not materially changed. The Company further confirms that material
assumptions underpinning the estimates of Ore Reserves described in “Technical Report — Sissingué Gold Project, Côte
d’Ivoire” dated 29 May 2015 continue to apply.
Yaouré. The information in this report that relates to Open Pit and Heap Leach Mineral Resources and Ore Reserves at
Yaouré was first reported by the Company in a market announcement “Perseus Mining Updates Mineral Resources and Ore
Reserves” released on 28 August 2019 and updated for mining depletion as at 30 June 2021 in a market announcement
released on 24 August 2021. The information in this report that relates to Underground Mineral Resources at Yaouré was first
reported by the Company in a market announcement “Perseus Mining Completes Scoping Study for Potential Underground
Mine at Yaouré” released on 5 November 2018 and adjusted to exclude material lying within the US$1,800/oz pit shell that
constrains the Open Pit Mineral Resources in a market announcement “Perseus Mining Updates Mineral Resources and Ore
Reserves” released on 28 August 2019. The information in this report that relates to the Yaouré near mine satellite deposit
Mineral Resource and Ore Reserve estimates was first reported by the Company in a market announcement “Perseus Mining
Updates Mineral Resources and Ore Reserves” released on 24 August 2021. The Company confirms that all material
assumptions underpinning those estimates and the production targets, or the forecast financial information derived therefrom,
in that market release continue to apply and have not materially changed. The Company further confirms that material
assumptions underpinning the estimates of Ore Reserves described in “Technical Report — Yaouré Gold Project, Côte
d’Ivoire” dated 18 December 2017 continue to apply.
CAUTION REGARDING FORWARD LOOKING INFORMATION:
This report contains forward-looking information which is based on the assumptions, estimates, analysis and opinions of
management made in light of its experience and its perception of trends, current conditions and expected developments, as
well as other factors that management of the Company believes to be relevant and reasonable in the circumstances at the
date that such statements are made, but which may prove to be incorrect. Assumptions have been made by the Company
regarding, among other things: the price of gold, continuing commercial production at the Yaouré Gold Mine, the Edikan Gold
Mine and the Sissingué Gold Mine without any major disruption due to the COVID-19 pandemic or otherwise, the receipt of
required governmental approvals, the accuracy of capital and operating cost estimates, the ability of the Company to operate
in a safe, efficient and effective manner and the ability of the Company to obtain financing as and when required and on
reasonable terms. Readers are cautioned that the foregoing list is not exhaustive of all factors and assumptions which may
have been used by the Company. Although management believes that the assumptions made by the Company and the
expectations represented by such information are reasonable, there can be no assurance that the forward-looking information
will prove to be accurate. Forward-looking information involves known and unknown risks, uncertainties, and other factors
which may cause the actual results, performance or achievements of the Company to be materially different from any
anticipated future results, performance or achievements expressed or implied by such forward-looking information. Such
factors include, among others, the actual market price of gold, the actual results of current exploration, the actual results of
future exploration, changes in project parameters as plans continue to be evaluated, as well as those factors disclosed in the
Company's publicly filed documents. The Company believes that the assumptions and expectations reflected in the forward-
looking information are reasonable. Assumptions have been made regarding, among other things, the Company’s ability to
carry on its exploration and development activities, the timely receipt of required approvals, the price of gold, the ability of the
Company to operate in a safe, efficient and effective manner and the ability of the Company to obtain financing as and when
required and on reasonable terms. Readers should not place undue reliance on forward-looking information. Perseus does not
undertake to update any forward-looking information, except in accordance with applicable securities laws.