Perseus Mining (PRU) Q1 2025 earnings summary

Executive summary

• Produced 121,290 ounces of gold in Q1 FY25 at an AISC of US$1,201/oz, with strong cashflow and a cash & bullion balance of US$643 million at quarter end, up US$56 million from June.

• Advanced CMA Underground (Yaouré) and Nyanzaga (Tanzania) projects, with FID for CMA expected November 2024 and Nyanzaga in January 2025.

• All three mines performed consistently, with operational improvements and safety performance ahead of targets; TRIFR at 0.97 and LTIFR at 0.15.

• Zero debt, US$300 million undrawn credit line, and US$84 million in listed securities support ongoing growth and shareholder returns.

• Acquired 19.9% stake in Predictive Discovery Ltd, funded by sale of Montage Gold Corp. stake for US$45 million.

Financial highlights

• Produced 121,290 ounces of gold, up 361 ounces from the previous quarter, with group AISC at US$1,201/oz, up US$28/oz sequentially.

• Average sale price was US$2,249/oz, with a group cash margin of US$1,048/oz and notional cashflow of US$127 million for the quarter.

• Cash and bullion at 30 September totaled US$643 million, a net increase of US$56 million during the quarter.

• Operating margin for the quarter was US$97 million; tax and NCI payments were each US$16 million.

• Investments in listed securities rose to US$84 million from US$42 million in the previous quarter.

Outlook and guidance

• Maintains H1 FY25 production guidance of 220,000–260,000oz at AISC US$1,230–1,330/oz; full year CY24 guidance unchanged at 468,400–508,400oz at AISC US$1,182–1,223/oz.

• Yaouré: 108,000–124,000oz at US$1,175–1,275/oz AISC for H2; Edikan: 82,000–98,000oz at US$1,200–1,300/oz; Sissingué: 30,000–38,000oz at US$1,500–1,600/oz.

• Temporary rise in AISC expected to fall in Q2 as Yaouré mining normalizes.

• Future capital needs include Nyanzaga project development, estimated at US$450–500 million starting 2025.