Perseus Mining

Perseus Mining Limited is an established mid-tier gold producer operating three mines across West Africa, with significant growth potential through the development of the Nyanzaga Gold Project in Tanzania. The company operates the Yaouré and Sissingué gold mines in Côte d'Ivoire and the Edikan gold mine in Ghana, collectively producing 496,551 ounces in FY2025 at an all-in site cost of US$1,235 per ounce.

Perseus maintains a diversified asset portfolio with proven operational expertise in West Africa, having successfully developed and commissioned the Yaouré mine ahead of schedule and under budget in 2020. The company's approach emphasizes operational excellence, cost control, and strategic capital allocation, demonstrated through consistent delivery within production guidance ranges and maintenance of industry-leading safety metrics with a 12-month rolling TRIFR of 0.60.

The company holds a strong financial position with US$827 million in cash and bullion as of June 2025, zero debt, and an undrawn credit facility of US$300 million. This financial strength provides flexibility for organic growth initiatives and disciplined capital allocation, including an active A$100 million share buyback program that is currently 83% complete.

Perseus presents a compelling investment opportunity centered on stable, profitable operations combined with transformational growth through the Nyanzaga development. The company's five-year outlook projects production of 2.6-2.7 million ounces at an average AISC of US$1,400-1,500 per ounce, representing sustained cash generation capability at current gold price levels.

The Nyanzaga Gold Project represents the primary growth catalyst, with an 11-year mine life producing an estimated 2.01 million ounces based on a JORC-compliant Probable Ore Reserve of 52.0 Mt at 1.40 g/t gold for 2.3 million ounces. The project targets first gold production in January 2027, with peak annual production of 246,000 ounces forecast for FY2028. At an assumed gold price of US$2,100 per ounce, the project delivers a pre-tax NPV of US$404 million and IRR of 26%.

The existing operations provide immediate cash flow generation with Yaouré emerging as the flagship asset, producing 262,239 ounces in FY2025 at an AISC of US$1,101 per ounce. The CMA Underground development at Yaouré will extend mine life to at least 2035, adding approximately $80m in development capital expenditure budgeted for FY2026.

Perseus benefits from geographical diversification across multiple stable mining jurisdictions, reducing political and operational risk concentration. The company's portfolio approach ensures production continuity even during planned transitions at individual mines, as demonstrated during the current ramp-up at Nkosuo and development activities at Nyanzaga.

Perseus is led by Managing Director and CEO Jeff Quartermaine, supported by an experienced board with proven track records in mining development and operations. The management team has demonstrated execution capability through the successful development of multiple mines across Africa, particularly the Yaouré project which was delivered ahead of schedule and under budget.

The technical team combines deep African mining experience with modern operational practices, evidenced by the company's industry-leading safety performance and consistent operational delivery. Key personnel have experience across the full mine lifecycle from exploration through development to operations and closure.

Management maintains a disciplined approach to capital allocation, balancing growth investment with shareholder returns through dividends and buybacks. The board includes independent directors with relevant mining, financial, and international experience, providing governance oversight and strategic guidance.

Perseus's growth strategy centers on organic development of existing assets combined with strategic exploration to extend mine lives and discover new deposits. The immediate focus is execution of the Nyanzaga development, leveraging the team's proven capability to deliver mining projects in Africa.

Phase one of Nyanzaga involves large-scale open-pit mining with potential for underground expansion in subsequent phases. Current drilling programs target conversion of Inferred to Indicated resources, potentially extending mine life beyond the current 11-year projection. The project benefits from established infrastructure including grid power connection and the recently opened Magufuli Bridge, which significantly improves logistics between Mwanza and the project site.

The CMA Underground at Yaouré represents near-term production growth, adding underground mining capability to extend asset life. Byrnecut has been appointed as mining contractor, bringing specialized underground expertise to what will be Côte d'Ivoire's first mechanized underground mine.

Perseus maintains active exploration programs across all operations, with promising results at targets including Zain 1 and Zain 2 near Yaouré. The company's exploration strategy focuses on near-mine opportunities with potential for rapid development and integration into existing processing infrastructure.

Future expansion will include development of the Bagoé satellite deposit, which will provide additional ore sources for the Sissingué complex beginning in Q2 FY2026. The company also holds interests in the Meyas Sand Gold Project in Sudan, though development is constrained by ongoing regional conflict.

Perseus demonstrates strong financial performance with FY2025 revenue driven by gold sales of 494,343 ounces at an average price of US$2,543 per ounce. The company generated notional operating cashflow of US$650 million for the year, reflecting the benefit of rising gold prices combined with operational efficiency.

Production costs remain well-controlled at US$980 per ounce in FY2025, with AISC of US$1,235 per ounce placing Perseus in the lower half of the industry cost curve. The company's cash margin of US$1,308 per ounce provides substantial buffer against gold price volatility while generating significant free cash flow.

Capital expenditure of approximately US$450 million is planned for FY2026, primarily allocated to Nyanzaga development (US$340 million), CMA Underground at Yaouré (US$80 million), and capitalized waste stripping at Edikan (US$20 million). This investment program is fully funded from existing cash resources without requiring external financing.

Perseus maintains conservative hedging positions covering approximately 16% of three-year forecast production through committed hedges, with additional downside protection through put options covering 20% of production at US$2,600 per ounce. This hedging strategy provides cash flow predictability while retaining upside exposure to gold price increases.

The company has returned significant capital to shareholders through dividends and buybacks, with total returns of A$275 million since FY2021. The current A$100 million buyback program demonstrates management's confidence in the business while enhancing returns for remaining shareholders.

Perseus Mining represents a compelling investment opportunity combining stable cash flow generation from established operations with significant growth potential through the Nyanzaga development. The company's track record of operational excellence, financial discipline, and successful project delivery provides confidence in execution capability.

The substantial cash position and conservative capital structure enable fully-funded growth without dilution, while the geographic diversification and low-cost operations provide resilience against commodity price volatility. The five-year production outlook of 2.6-2.7 million ounces offers scale and consistency that should support sustainable value creation.

The investment thesis is strengthened by experienced management with demonstrated African mining expertise, strong government relationships across operating jurisdictions, and a portfolio approach that balances production stability with growth opportunities. Current valuation appears attractive relative to development potential and cash generation capability at prevailing gold prices.

Key catalysts include successful Nyanzaga commissioning in early 2027, CMA Underground production commencement in Q1 FY2026, and potential resource expansions from ongoing drilling programs. Perseus is well-positioned to benefit from continued strength in gold markets while delivering operational excellence across its diversified asset base.