Perseus opens purse with maiden capital return to shareholders

PERSEUS Mining has recorded a 48% increase in net profit to A$139.4 million and is returning about $18 million to shareholders in a maiden capital return that represents a 1% yield.
Perseus opens purse with maiden capital return to shareholders Perseus opens purse with maiden capital return to shareholders Perseus opens purse with maiden capital return to shareholders Perseus opens purse with maiden capital return to shareholders Perseus opens purse with maiden capital return to shareholders

Gold out of Yaoure equals capital being returned to Perseus' shareholders

Perseus managing director Jeff Quartermaine told a conference call the company's rationale for henceforth linking dividends to its share price (as per a 1% yield), was based on its ambition for shareholders to be able "to rely on us to pay a consistent dividend".

Capital markets firm Argonaut described the dividend policy as "novel".

"By intending to pay out 1% of its market cap each year back to shareholders Perseus delegates some power to the market, and says it's a deliberate show of confidence," Argonaut said.

Perseus' earnings in the 2020/21 passed $300 million (on an EBITDA basis), an increase of 11% on the previous year.

Cash and bullion at year-end totalled $207.9 million, or $74.7 million, net of $133.2 million of outstanding debt.

Production this calendar year is expected to be between 416,247 ounces and 446,247oz at all-in site costs of US$975-1035/oz.

The aim is to produce more than 500,000oz in fiscal 2022.

Shares in Perseus were down 1% to A$1.45 in morning trade, capitalising the company at $1.78 billion.