Which ASX 200 gold share has a treasure trove for a balance sheet?

One ASX 200 gold company has a standout balance sheet.

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Key points

  • Gold shares on the ASX 200 include Northern Star, Newcrest, and Perseus Mining 
  • One of these gold shares has a debt-to-equity percentage of just 0.221%
  • The ASX gold share is operating and developing gold mines in Africa 

This ASX 200 gold share appears to have a strong balance sheet compared to other gold companies on the market.

Perseus Mining Ltd (ASX: PRU) is operating and developing multiple mines in Africa. It takes its place in the ASX 200 with other prominent gold shares including Northern Star Resources Ltd (ASX: NST) and Newcrest Mining Ltd (ASX: NCM).

So what is there to like about the balance sheet of this ASX 200 gold share?

How does this ASX 200 gold share compare?

Perseus operates three mines in West Africa including Sissingue, Yaoure, and Edikan. The company also has a 70% stake in the Meyas Sand Gold Project in Sudan and a 31.4% share of the Kone Gold Project in Cote d'Ivoire.

Perseus Mining has $426.8 million of cash and equivalents and a total debt-to-equity percentage of 0.221 (as at the latest quarter), according to an S&P Capital IQ company screening report.

A low debt-to-equity percentage means the company's liabilities compared to equity are low. This is often seen as a good sign for the company and its investors.

Looking at Perseus compared to other ASX 200 gold shares, the data shows Newcrest had cash and equivalents of $820 million, while Northern Star Resources had $571.1 million.

However, Perseus has a far lower total debt-to-equity percentage compared to these two ASX gold miners. The Newcrest total debt-to-equity percentage is 19.6%, compared to 9.75% for Northern Star.

Perseus Mining recently updated the market on the Meyas Sand Gold Project, 900 kilometres north of Sudan's capital, Khartoum.

Employees and contractors have been able to return to the mine site following their withdrawal in late April amid armed conflict in the Khartoum area. Drilling is due to start again by the end of the month.

Further, Perseus noted recent events in Sudan have had "no impact" on the company's gold production activities in West Africa.

Commenting on the update, Perseus managing director Jeff Quartermaine said:

Our decision to temporarily withdraw our people from the Meyas Sand Gold Project site in April was taken with their safety and security in mind.

With further assessment of the situation, it appears that the perceived immediate threat has abated and we are comfortable with the prospects of returning to work at the Meyas Sand site without undue risk.

Perseus produced 130,275 ounces of gold in the March quarter at an all in sustaining cost of US$971 an ounce.

The company reported an average cash margin of US$850 per ounce of gold sold, 11% higher than the prior quarter.

Share price snapshot

The Perseus Mining share price has slid 4% in the last year. Meantime, Northern Star shares have soared 63%, while Newcrest shares have jumped 12%.

Motley Fool contributor Monica O'Shea has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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