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Perseus Mining gets ‘outperform’ rating from Credit Suisse; target price raised

The West African gold producer recorded a net profit after tax of A$94.4 million in FY20 compared to a net profit after tax of A$7.6 million in the previous financial year.

Perseus Mining Ltd - Perseus Mining gets ‘outperform’ rating from Credit Suisse; target price raised
Almost A$213 million of cashflow was generated from gold operations

Perseus Mining Limited (ASX:PRU) (TSE:PRU) (OTCMKTS:PMNXF) is on a strong footing after achieving EBITDA from operations of A$273.8 million in FY20, a 67% increase compared to the previous financial year.

This follows an increase in sales revenue of 16% to A$591.2 million and a decrease in cost of sales of 8% to A$317.4 million.

Switzerland-based Credit Suisse has increased its target price for Perseus to A$1.60 per share (from A$1.30).

Credit Suisse has also upgraded its rating to Outperform (from Underperform) on valuation grounds.

Net profit after tax

The West African gold producer recorded a net profit after tax of A$94.4 million or 8.1 cents per share, compared to a net profit after tax of A$7.6 million or 0.7 cents per share in the previous financial year.

At June 30, 2020, the total value of cash and bullion on hand was A$237.5 million, or A$69.2 million more than at June 30, 2019.

CEO and managing director Jess Quartermaine recently told Proactive that the results were outstanding.

He said that it had been a "very good year indicated by the results, particularly against a backdrop where lots of industries are struggling with COVID and things of that nature".

In describing the profit after tax, he told Proactive: "This was a somewhat extraordinary 1,146% better than what we achieved in the previous year.”

$213 million of cashflow

Almost A$213 million of cash flow was generated from gold operations, 46% up on the previous year.

“The improved gold price over this period of time had something to do with that result but also our cost base has been gradually coming down following implementation of an updated mining strategy at Edikan in 2019.” Quartermaine added.

Quick facts: Perseus Mining Ltd

Price: 1.315 AUD

ASX:PRU
Market: ASX
Market Cap: $1.62 billion
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Perseus Mining reports strong September quarter with production up 6% to...

Perseus Mining Ltd's (ASX:PRU) (TSE:PRU) (OTCMKTS:PMNXF) Jeff Quartermaine talks Proactive's Andrew Scott through its September quarter highlights. He says both Edikan and Sissingué operations have continued to perform strongly with gold production up 6% to 68,772 ounces compared to the prior...

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