Perseus Mining Earnings: Higher Gold Prices Drive Strong Result

We retain our AUD 2 fair value estimate for no-moat-rated Perseus Mining despite a fiscal 2024 first-half result that was better than our expectations. EBITDA grew 18% to roughly USD 280 million, with unit cash costs rising less than we forecast. Net profit after tax rose 20% to about USD 165 million, or USD 10.5 cents—AUD 15.9 cents—per share. This due to stronger gold prices, which more than offset higher unit cash costs and modestly lower sales volume. Perseus will pay an unfranked interim dividend of AUD 1.25 cents per share in April. We forecast total unfranked dividends for fiscal 2024 of AUD 3 cents, roughly a 1.8% yield at current prices.