ASX:PRU

Stock Analysis Report

Executive Summary

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

Rewards

Trading at 95.7% below its fair value

Earnings are forecast to grow 71.55% per year

Became profitable this year

Risk Analysis

Highly volatile share price over past 3 months

Shareholders have been diluted in the past year



Snowflake Analysis

Exceptional growth potential with adequate balance sheet.


Similar Companies

Share Price & News

How has Perseus Mining's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: PRU's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

1.0%

PRU

1.4%

AU Metals and Mining

-0.07%

AU Market


1 Year Return

177.8%

PRU

22.0%

AU Metals and Mining

19.1%

AU Market

Return vs Industry: PRU exceeded the Australian Metals and Mining industry which returned 22% over the past year.

Return vs Market: PRU exceeded the Australian Market which returned 19.1% over the past year.


Shareholder returns

PRUIndustryMarket
7 Day1.0%1.4%-0.07%
30 Day20.5%1.5%-0.6%
90 Day44.9%0.7%0.4%
1 Year177.8%177.8%30.9%22.0%25.0%19.1%
3 Year80.2%80.2%59.5%37.6%36.0%17.4%
5 Year359.4%354.5%117.5%66.1%63.2%26.5%

Price Volatility Vs. Market

How volatile is Perseus Mining's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Perseus Mining undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: PRU (A$1) is trading below our estimate of fair value (A$23.1)

Significantly Below Fair Value: PRU is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: PRU is poor value based on its PE Ratio (151.6x) compared to the Metals and Mining industry average (13.1x).

PE vs Market: PRU is poor value based on its PE Ratio (151.6x) compared to the Australian market (18.4x).


Price to Earnings Growth Ratio

PEG Ratio: PRU is poor value based on its PEG Ratio (2.1x)


Price to Book Ratio

PB vs Industry: PRU is overvalued based on its PB Ratio (1.5x) compared to the AU Metals and Mining industry average (1.4x).


Next Steps

Future Growth

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

71.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: PRU's forecast earnings growth (71.5% per year) is above the savings rate (1.1%).

Earnings vs Market: PRU's earnings (71.5% per year) are forecast to grow faster than the Australian market (9.3% per year).

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

Revenue vs Market: PRU's revenue (20.2% per year) is forecast to grow faster than the Australian market (3.6% per year).

High Growth Revenue: PRU's revenue (20.2% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: PRU's Return on Equity is forecast to be high in 3 years time (21.5%)


Next Steps

Past Performance

How has Perseus Mining performed over the past 5 years?

-27.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: PRU has high quality earnings.

Growing Profit Margin: PRU became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: PRU has become profitable over the past 5 years, growing earnings by -27.3% per year.

Accelerating Growth: PRU has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: PRU has become profitable in the last year, making it difficult to compare its past year earnings growth to the Metals and Mining industry (7.8%).


Return on Equity

High ROE: PRU's Return on Equity (1%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Perseus Mining's financial position?


Financial Position Analysis

Short Term Liabilities: PRU's short term assets (A$268.5M) exceed its short term liabilities (A$85.8M).

Long Term Liabilities: PRU's short term assets (A$268.5M) exceed its long term liabilities (A$99.9M).


Debt to Equity History and Analysis

Debt Level: PRU's debt to equity ratio (5.7%) is considered satisfactory.

Reducing Debt: Insufficient data to determine if PRU's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: PRU's debt is well covered by operating cash flow (326.2%).

Interest Coverage: Insufficient data to determine if PRU's interest payments on its debt are well covered by EBIT.


Balance Sheet

Inventory Level: PRU has a high level of physical assets or inventory.

Debt Coverage by Assets: PRU's debt is covered by short term assets (assets are 6x debt).


Next Steps

Dividend

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

0.64%

Forecast Dividend Yield


Dividend Yield vs Market

companyn/amarketbottom25%2.4%markettop25%5.5%industryaverage4.5%forecastin3Years0.6%

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate PRU's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate PRU's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if PRU's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if PRU's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of PRU's dividend in 3 years as they are not forecast to pay a notable one for the Australian market.


Next Steps

Management

What is the CEO of Perseus Mining's salary, the management and board of directors tenure and is there insider trading?

4.9yrs

Average management tenure


CEO

Jeff Quartermaine (62yo)

6.8yrs

Tenure

AU$1,229,034

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 ($USD837.56K) is about average for companies of similar size in the Australian market ($USD999.30K).

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


Management Age and Tenure

4.9yrs

Average Tenure

Experienced Management: PRU's management team is considered experienced (4.9 years average tenure).


Board Age and Tenure

2.5yrs

Average Tenure

59.5yo

Average Age

Experienced Board: PRU's board of directors are not considered experienced ( 2.5 years average tenure), which suggests a new board.


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyAU$4,838,26327 Nov 19
Dimensional Fund Advisors L.P.
EntityCompany
Shares6,196,638
Max PriceAU$0.89
SellAU$751,45727 Nov 19
Dimensional Fund Advisors L.P.
EntityCompany
Shares1,019,650
Max PriceAU$0.76
BuyAU$32,55227 Nov 19
M Fund, Inc. - M International Equity Fund
EntityCompany
Shares43,898
Max PriceAU$0.74
SellAU$8,760,39918 Nov 19
Franklin Resources, Inc.
EntityCompany
Shares11,737,416
Max PriceAU$0.92
SellAU$8,623,09510 Sep 19
AustralianSuper Pty. Ltd.
EntityCompany
Shares9,798,969
Max PriceAU$0.88
BuyAU$1,794,66010 Sep 19
AustralianSuper Pty. Ltd.
EntityCompany
Shares2,032,039
Max PriceAU$0.88
SellAU$4,043,74608 Aug 19
Ruffer LLP
EntityCompany
Shares6,553,745
Max PriceAU$0.62
SellAU$70,54123 Jul 19
Terence Harvey
EntityIndividual
Role
Chairman of the Board
Non-Executive Chairman
Shares100,000
Max PriceAU$0.71
SellAU$3,528,99130 Jun 19
Franklin Resources, Inc.
EntityCompany
Shares5,937,584
Max PriceAU$0.60
BuyAU$909,74330 Jun 19
Franklin Resources, Inc.
EntityCompany
Shares2,025,510
Max PriceAU$0.45
BuyAU$6,961,24226 Jun 19
Van Eck Associates Corporation
EntityCompany
Shares11,477,317
Max PriceAU$0.62
SellAU$7,36020 Jun 19
Van Eck Associates Corporation
EntityCompany
Shares2,977,840
Max PriceAU$0.47
BuyAU$10,22120 Jun 19
Van Eck Associates Corporation
EntityCompany
Shares1,761,527
Max PriceAU$0.48
BuyAU$86,04512 May 19
Van Eck Associates Corporation
EntityCompany
Shares197,433
Max PriceAU$0.44
BuyAU$39,47003 May 19
Van Eck Associates Corporation
EntityCompany
Shares85,524
Max PriceAU$0.46
SellAU$1,098,87502 May 19
Dimensional Fund Advisors L.P.
EntityCompany
Shares3,105,523
Max PriceAU$0.48
BuyAU$6,468,60002 May 19
Dimensional Fund Advisors L.P.
EntityCompany
Shares15,369,522
Max PriceAU$0.45
BuyAU$213,49522 Apr 19
Franklin Resources, Inc.
EntityCompany
Shares474,490
Max PriceAU$0.45
BuyAU$3,384,03109 Apr 19
Franklin Resources, Inc.
EntityCompany
Shares10,100,000
Max PriceAU$0.34
BuyAU$3,512,15019 Mar 19
Van Eck Associates Corporation
EntityCompany
Shares7,713,629
Max PriceAU$0.46
SellAU$749,63405 Mar 19
Van Eck Associates Corporation
EntityCompany
Shares1,889,586
Max PriceAU$0.40
BuyAU$1,155,18605 Mar 19
Van Eck Associates Corporation
EntityCompany
Shares3,197,404
Max PriceAU$0.39
SellAU$57,60030 Jan 19
Terence Harvey
EntityIndividual
Role
Chairman of the Board
Non-Executive Chairman
Shares160,000
Max PriceAU$0.36
BuyAU$62,40030 Jan 19
Terence Harvey
EntityIndividual
Role
Chairman of the Board
Non-Executive Chairman
Shares160,000
Max PriceAU$0.39
SellAU$4,113,49708 Jan 19
AustralianSuper Pty. Ltd.
EntityCompany
Shares8,394,892
Max PriceAU$0.49
BuyAU$9,284,22808 Jan 19
AustralianSuper Pty. Ltd.
EntityCompany
Shares18,947,403
Max PriceAU$0.49

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 2.5%.


Management Team

  • Doug Jones (65yo)

    Group General Manager of Exploration & Geology

    • Tenure: 3.7yrs
    • Compensation: AU$523.29k
  • Jeff Quartermaine (62yo)

    MD, CEO & Director

    • Tenure: 6.8yrs
    • Compensation: AU$1.23m
  • Paul Thompson

    Group General Manager of Technical Services

    • Tenure: 4.9yrs
    • Compensation: AU$436.79k
  • Elissa Brown

    Chief Financial Officer

    • Tenure: 6.8yrs
    • Compensation: AU$570.28k
  • Chris Woodall

    Chief Operating Officer

    • Tenure: 3.3yrs
    • Compensation: AU$708.87k
  • Martijn Bosboom

    General Counsel & Company Secretary

    • Tenure: 6.4yrs
    • Compensation: AU$544.55k
  • Matthew Scully

    Group General Manager of Project Development

    • Tenure: 3yrs
    • Compensation: AU$441.58k
  • Andrew Grove

    General Manager of Business Development & Investor Relations

    • Tenure: 0yrs
  • Michael Beck

    Group Human Resources Manager

    • Tenure: 0yrs

Board Members

  • Jeff Quartermaine (62yo)

    MD, CEO & Director

    • Tenure: 6.8yrs
    • Compensation: AU$1.23m
  • David Ransom

    Non-Executive Director

    • Tenure: 0.08yrs
  • Terence Harvey (60yo)

    Non-Executive Chairman

    • Tenure: 2.7yrs
    • Compensation: AU$185.30k
  • Dan Lougher (59yo)

    Non-Executive Director

    • Tenure: 0.6yrs
    • Compensation: AU$12.89k
  • John McGloin (54yo)

    Non-Executive Director

    • Tenure: 3.7yrs
    • Compensation: AU$107.42k
  • Sally-Anne Layman

    Non-Executive Director

    • Tenure: 2.3yrs
    • Compensation: AU$108.80k

Company Information

Perseus Mining Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Perseus Mining Limited
  • Ticker: PRU
  • Exchange: ASX
  • Founded: 2003
  • Industry: Gold
  • Sector: Materials
  • Market Cap: AU$1.168b
  • Shares outstanding: 1.17b
  • Website: https://www.perseusmining.com

Number of Employees


Location

  • Perseus Mining Limited
  • 437 Roberts Road
  • Level 2
  • Subiaco
  • Western Australia
  • 6008
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
PRUASX (Australian Securities Exchange)YesOrdinary SharesAUAUDSep 2004
P4QDB (Deutsche Boerse AG)YesOrdinary SharesDEEURSep 2004
PMNX.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDSep 2004
PRUTSX (The Toronto Stock Exchange)YesOrdinary SharesCACADSep 2004
PRUCHIA (Chi-X Australia)YesOrdinary SharesAUAUDSep 2004
0TXWLSE (London Stock Exchange)YesOrdinary SharesGBAUDSep 2004

Biography

Perseus Mining Limited explores, evaluates, develops, and mines for gold properties in West Africa. It holds interests in the Edikan gold mine and Grumesa project located in Ghana; and Sissingué and Yaoure ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/11 10:30
End of Day Share Price2019/12/11 00:00
Earnings2019/06/30
Annual Earnings2019/06/30


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.