The Perseus Mining Limited (ASX: PRU) share price is falling today, even after posting record earnings for FY22 and delivering a dividend surprise.
The big jump in revenue and earnings from the African gold miner is driven by steady output from its three gold mines. The favourable gold price achieved during the period also helped.
However, the news couldn't save the Perseus share price from today's broader market sell-off. It's dropped 2.6% to $1.52 in early trade, while the All Ordinaries (ASX: XAO) lost 0.5%.
Perseus FY22 results summary
- Revenue of $1,126 million, up 66% on FY21
- Record earnings before interest, tax, depreciation, and amortisation (EBITDA) of $564.1 million, up 86% on FY21
- Record net profit after tax (NPAT) from ordinary activities of $279.9 million, up 101% on FY21, after exploration write-down of $43.4 million
- Basic earnings per share (EPS) of 18.8 cents per share, up 96% year on year
- Net cash inflows from operating activities of $522.9 million or 42.01 cents per share, up 73% on FY21
- Final dividend of 1.64 cents per share (cps) including a bonus dividend of 0.79 cps, bringing total dividends in FY2022 to 2.45 cps
Key details from Perseus' FY22 results
The higher realised gold price and increased production output from Yaouré contributed to the top-line growth.
Costs also didn't rise as much as some feared in this high inflationary environment. This is because of the increased proportion of sales from Yaouré, which has an all-in site cost of US$668 an ounce in FY22. The gold price is bouncing around US$1,700 to US$1,800 an ounce.
An income tax benefit of $200,000 further bolstered the Perseus NPAT. The miner had to pay income tax of $23.7 million in FY21.
But it wasn't all good news in the Perseus results. Higher depreciation and amortisation costs, a big $43.4 million write-down, detracted. Higher financing and admin and corporate costs also hurt its bottom line.
What the miner is saying
Perseus managing director Jeff Quartermaine said:
Our record financial results for FY22 reflect our continued strong operating performance at all levels of our business during the period. Our three gold mines are producing at our targeted rate of production with 494,014 ounces of gold produced in FY22, and our weighted average all-in site cost of US$952 per ounce is very competitive relative to most of our peers.
We are delivering excellent drill results from our organic growth programs targeting mineable Mineral Resources close to our existing operations and the acquisition of Orca Gold Inc. earlier this year has provided us with the opportunity to diversify away from West Africa and access the Nubian Shield precinct in North-East Africa.
Outlook
Announced alongside its results, Perseus is holding firm to its guidance in the December 2022 half and for the full calendar year.
Yaouré will continue to do more of the heavy lifting, with the mine tipped to produce 130k to 140k ounces of gold in the current half.
Perseus aims to produce 492,850 to 517,850 ounces of gold from its three mines in 2022. Its all-in site cost is forecast to range between US$980 and US$1,025 an ounce.
Perseus share price snapshot
The Perseus share price has largely been flat over the past year before today's results. That's not a bad outcome, given how its larger peers have been performing.
For instance, the Newcrest Mining Ltd (ASX: NCM) share price tanked 29%, while Evolution Mining Ltd (ASX: EVN) share price slumped 40% over the period.
In contrast, the All Ordinaries index has shed around 8% of its value in the past 12 months.
