Perseus Mining (ASX:PRU) - Share price, News & Analysis

Q: What is the Fair Price of PRU when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

PRU (A$1.67) is trading below our estimate of [[fair value]] (A$1.84)

PRU fundamental analysis
Snowflake Score
Valuation	4/6
Future Growth	3/6
Past Performance	5/6
Financial Health	5/6
Dividends	0/6

PRU Stock Overview

Perseus Mining Limited explores, evaluates, develops, and mines for gold properties in West Africa.

Rewards

Trading at 9.3% below our estimate of its fair value

Earnings are forecast to grow 26.18% per year

Earnings grew by 90.2% over the past year

Risk Analysis

Shareholders have been diluted in the past year

Perseus Mining Competitors

Silver Lake Resources

ASX:SLR

AU$1.4b

Regis Resources

ASX:RRL

AU$1.3b

Ramelius Resources

ASX:RMS

AU$897.7m

Evolution Mining

ASX:EVN

AU$5.0b

Price History & Performance

Summary of all time highs, changes and price drops for Perseus Mining
Historical stock prices
Current Share Price	AU$1.67
52 Week High	AU$2.09
52 Week Low	AU$1.31
Beta	0.85
1 Month Change	5.03%
3 Month Change	-1.48%
1 Year Change	13.22%
3 Year Change	104.91%
5 Year Change	466.10%
Change since IPO	912.12%

Recent News & Updates

Jul 06

Perseus Mining (ASX:PRU) Is Looking To Continue Growing Its Returns On Capital

Did you know there are some financial metrics that can provide clues of a potential multi-bagger? In a perfect world...

Jun 22

Is Now The Time To Put Perseus Mining (ASX:PRU) On Your Watchlist?

It's common for many investors, especially those who are inexperienced, to buy shares in companies with a good story...

Shareholder Returns

	PRU	AU Metals and Mining	AU Market
7D	-2.1%	3.1%	0.7%
1Y	13.2%	-14.4%	-8.5%

Return vs Industry: PRU exceeded the Australian Metals and Mining industry which returned -14.4% over the past year.

Return vs Market: PRU exceeded the Australian Market which returned -8.5% over the past year.

Price Volatility

Is PRU's price volatile compared to industry and market?
PRU volatility
PRU Average Weekly Movement	5.9%
Metals and Mining Industry Average Movement	12.4%
Market Average Movement	10.6%
10% most volatile stocks in AU Market	18.1%
10% least volatile stocks in AU Market	4.6%

Stable Share Price: PRU is less volatile than 75% of Australian stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: PRU's weekly volatility (6%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
2003	n/a	Jeff Quartermaine	https://www.perseusmining.com

Perseus Mining Limited explores, evaluates, develops, and mines for gold properties in West Africa. The company primarily holds interests in the Edikan gold mine project located in Ghana; and Sissingué and Yaoure gold projects located in Côte d’Ivoire. Perseus Mining Limited was incorporated in 2003 and is based in Subiaco, Australia.

Perseus Mining Fundamentals Summary

How do Perseus Mining's earnings and revenue compare to its market cap?
PRU fundamental statistics
Market Cap	AU$2.28b
Earnings (TTM)	AU$191.53m
Revenue (TTM)	AU$938.72m

11.9x

P/E Ratio

2.4x

P/S Ratio

Is PRU overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
PRU income statement (TTM)
Revenue	AU$938.72m
Cost of Revenue	AU$509.12m
Gross Profit	AU$429.60m
Other Expenses	AU$238.07m
Earnings	AU$191.53m

Last Reported Earnings

Dec 31, 2021

Next Earnings Date

Aug 31, 2022

Earnings per share (EPS)	0.14
Gross Margin	45.76%
Net Profit Margin	20.40%
Debt/Equity Ratio	5.9%

How did PRU perform over the long term?

See historical performance and comparison

Dividends

1.0%

Current Dividend Yield

5%

Payout Ratio

We’ve recently updated our valuation analysis.

Valuation

Is PRU undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

4/6

Valuation Score 4/6

Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for PRU?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for PRU. This is calculated by dividing PRU's market cap by their current preferred multiple.
What is PRU's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	AU$2.28b

PRU key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	2.3x
Enterprise Value/EBITDA	5.2x
PEG Ratio	0.5x

Price to Earnings Ratio vs Peers

How does PRU's PE Ratio compare to its peers?

PRU PE Ratio vs Peers

The above table shows the PE ratio for PRU vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	16.2x
SLR Silver Lake Resources	17.8x	24.0%	AU$1.4b
RRL Regis Resources	15.3x	12.8%	AU$1.3b
RMS Ramelius Resources	7.6x	10.6%	AU$897.7m
EVN Evolution Mining	24x	20.2%	AU$5.0b
PRU Perseus Mining	11.9x	26.2%	AU$2.3b

Price-To-Earnings vs Peers: PRU is good value based on its Price-To-Earnings Ratio (11.9x) compared to the peer average (16.2x).

Price to Earnings Ratio vs Industry

How does PRU's PE Ratio compare vs other companies in the AU Metals and Mining Industry?

Price-To-Earnings vs Industry: PRU is expensive based on its Price-To-Earnings Ratio (11.9x) compared to the Australian Metals and Mining industry average (10.7x)

Price to Earnings Ratio vs Fair Ratio

What is PRU's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

PRU PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	11.9x
Fair PE Ratio	25.9x

Price-To-Earnings vs Fair Ratio: PRU is good value based on its Price-To-Earnings Ratio (11.9x) compared to the estimated Fair Price-To-Earnings Ratio (25.9x).

Share Price vs Fair Value

What is the Fair Price of PRU when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: PRU (A$1.67) is trading below our estimate of fair value (A$1.84)

Significantly Below Fair Value: PRU is trading below fair value, but not by a significant amount.

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.

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Future Growth

How is Perseus Mining forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

Future Growth Score

3/6

Future Growth Score 3/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

26.2%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: PRU's forecast earnings growth (26.2% per year) is above the savings rate (1.8%).

Earnings vs Market: PRU's earnings (26.2% per year) are forecast to grow faster than the Australian market (6.1% per year).

High Growth Earnings: PRU's earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: PRU's revenue (3% per year) is forecast to grow slower than the Australian market (5.6% per year).

High Growth Revenue: PRU's revenue (3% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: PRU's Return on Equity is forecast to be low in 3 years time (16.3%).

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Past Performance

How has Perseus Mining performed over the past 5 years?

Past Performance Score

5/6

Past Performance Score 5/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

76.5%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: PRU has high quality earnings.

Growing Profit Margin: PRU's current net profit margins (20.4%) are higher than last year (16.7%).

Past Earnings Growth Analysis

Earnings Trend: PRU has become profitable over the past 5 years, growing earnings by 76.5% per year.

Accelerating Growth: PRU's earnings growth over the past year (90.2%) exceeds its 5-year average (76.5% per year).

Earnings vs Industry: PRU earnings growth over the past year (90.2%) exceeded the Metals and Mining industry 57.3%.

Return on Equity

High ROE: PRU's Return on Equity (18.5%) is considered low.

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Financial Health

How is Perseus Mining's financial position?

Financial Health Score

5/6

Financial Health Score 5/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: PRU's short term assets (A$459.2M) exceed its short term liabilities (A$140.7M).

Long Term Liabilities: PRU's short term assets (A$459.2M) exceed its long term liabilities (A$174.8M).

Debt to Equity History and Analysis

Debt Level: PRU has more cash than its total debt.

Reducing Debt: PRU's debt to equity ratio has increased from 0.03% to 5.9% over the past 5 years.

Debt Coverage: PRU's debt is well covered by operating cash flow (645.4%).

Interest Coverage: PRU's interest payments on its debt are well covered by EBIT (26.8x coverage).

Balance Sheet

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Dividend

What is Perseus Mining current dividend yield, its reliability and sustainability?

Dividend Score

0/6

Dividend Score 0/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Cash Flow Coverage

0.97%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: PRU's dividend (0.97%) isn’t notable compared to the bottom 25% of dividend payers in the Australian market (2.56%).

High Dividend: PRU's dividend (0.97%) is low compared to the top 25% of dividend payers in the Australian market (6.36%).

Stability and Growth of Payments

Stable Dividend: PRU is not paying a notable dividend for the Australian market, therefore no need to check if payments are stable.

Growing Dividend: PRU is not paying a notable dividend for the Australian market, therefore no need to check if payments are increasing.

Earnings Payout to Shareholders

Earnings Coverage: PRU is not paying a notable dividend for the Australian market.

Cash Payout to Shareholders

Cash Flow Coverage: PRU is not paying a notable dividend for the Australian market.

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Management

How experienced are the management team and are they aligned to shareholders interests?

6.1yrs

Average management tenure

CEO

Jeff Quartermaine (65 yo)

9.5yrs

Tenure

AU$1,593,404

Compensation

Mr. Jeffrey Allan Quartermaine, also known as Jeff, BE (Civil), MBA, FCPA has been the Chief Executive Officer of Perseus Mining limited since February 1, 2013 and has been its Managing Director since Janu...

CEO Compensation Analysis

Compensation vs Market: Jeff's total compensation ($USD1.13M) is about average for companies of similar size in the Australian market ($USD1.54M).

Compensation vs Earnings: Jeff's compensation has been consistent with company performance over the past year.

Leadership Team

Experienced Management: PRU's management team is seasoned and experienced (6.1 years average tenure).

Board Members

Experienced Board: PRU's board of directors are considered experienced (3.3 years average tenure).

Ownership

Who are the major shareholders and have insiders been buying or selling?

Insider Trading Volume

Insider Buying: PRU insiders have bought more shares than they have sold in the past 3 months.

Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 11.2%.

Data	Last Updated (UTC time)
Company Analysis	2022/08/14 00:00
End of Day Share Price	2022/08/12 00:00
Earnings	2021/12/31
Annual Earnings	2021/06/30