Perseus Mining
(ASX: PRU)Share Price and News
About Perseus Mining
Perseus Mining Limited is an established gold exploration and production company, headquartered in Perth, Australia.
It has gold mining assets in West Africa, with operations based in Côte d'Ivoire and Ghana. Perseus operates the Edikan Gold Mine in Ghana and the Sissingué Gold Mine in Côte d'Ivoire. These assets now produce over 500,000/oz with an AISC of under US$1,200 and average sale price of US$2,350/oz.
Perseus Mining's Company History
Perseus Mining was founded in 2003, with Jeff Quartermaine playing a key role in its development. It was then just another small cap explorer with hopes to grow, but the odds were against it. It picked up Edikan Gold Project in Ghana, bringing it into production in 2012.
Since then, Perseus has significantly expanded its operations, acquiring the Sissingué Gold Mine in Côte d'Ivoire in 2017 and the Yaouré Gold Mine in 2020 and bringing them into production in 2018 and 2021 respectively. These acquisitions were strategic moves that bolstered Perseus' production and resource base. The company has grown its portfolio by focusing on low-cost, high-margin operations and has consistently delivered on its objectives. In 2022, it acquired the Meyas Sand Gold project in Sudan.
Government support was not a problem, nor was the lack of a resource with 3.3m/oz in Measured and Indicated Resources. But the civil war there means it won’t be going anywhere with it anytime soon.
Perseus has also picked up the Nyanzaga project in Tanzania, but is yet to make an FID (Final Investment Decision) as negotiations with the Tanzanian government have not yet been resolved. Tanzania is keen to secure its own share of returns from it. So now an FID is expected in the second half of CY25 and production would occur in early 2027.
Future Outlook of Perseus Mining (ASX: PRU)
Perseus Mining’s future outlook is shaped by several key factors that are likely to influence its performance in the coming years. The two biggest are where gold prices go and what happens to its future portfolio.
The reason Perseus bought Meyas and Nyanzaga was because Edikan and Sissingue may be soon to pass their use by dates with Edikan only scheduled to operate until FY27 and Sissingue set earlier than that, although it is anticipated that the company may be able to extend its life by processing material from satellite deposits.
Is Perseus Mining (ASX: PRU) a Good Stock to Buy?
When assessing whether Perseus Mining is a good stock to buy, several key aspects should be considered, such as its valuation, growth potential, and the risks inherent in the gold mining sector.
Perseus is currently trading at a relatively favourable price-to-earnings (P/E) ratio compared to its industry peers, making it an appealing option for investors seeking exposure to gold production at a reasonable price.
In terms of dividends, Perseus has shown a commitment to paying them, but they have been paltry - it only aims to pay a 1% dividend.
However, like all investments in the mining sector, Perseus is subject to risks such as fluctuating gold prices and operational/jurisdictional risks in West Africa.
Our Stock Analysis
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Frequently Asked Questions
Perseus Mining aims for a dividend yield of only 1%. The company has paid consistent dividends, but some investors may be disappointed at the yield.