Perseus Mining Delivers Record Returns as Yaouré Underground Clears Presidential Approval

• Perseus Mining achieved record financial performance in FY25 with profit after tax of US$421.7 million and operating cash flow of US$537 million, both driven by a 21% gold price surge and operational discipline across three West African mines.
• The company secured Presidential Decree approval in September 2025 for the US$170 million CMA underground project at Yaouré, extending mine life to at least 2035 and marking Côte d'Ivoire's first underground gold development.
• Group production of 496,551 ounces at an all-in site cost of US$1,235 per ounce came in at the favorable end of guidance, with cash margins exceeding US$1,300 per ounce against realized prices of US$2,543 per ounce.
• Perseus returned A$185.8 million to shareholders in FY25 through dividends and buybacks, maintaining a debt-free balance sheet with US$827 million in cash and bullion reserves.
• The company's five-year outlook projects average annual production of 515,000–535,000 ounces at US$1,400–1,500 per ounce AISC, with 93% of ounces underpinned by existing ore reserves.

Perseus Mining has emerged from FY25 with a balance sheet, production profile, and capital-return track record that positions the company among the upper echelon of mid-tier gold producers globally. The combination of surging gold prices, operational consistency, and a major regulatory breakthrough at the Yaouré underground project has delivered institutional-grade returns while preserving financial flexibility for the next phase of growth.

With gold hovering near all-time highs above US$2,700 per ounce and macroeconomic uncertainty sustaining safe-haven demand, Perseus offers investors exposure to a diversified portfolio of three operating mines across Ghana and Côte d'Ivoire, a near-term production expansion via the Yaouré underground, and optionality on the large-scale Nyanzaga project in Tanzania. The company's FY25 results demonstrate the operating leverage inherent in the business model, with EBITDA margins expanding to 59.3% and cash generation rising 25% year-over-year despite flat production volumes.

For investors seeking gold exposure without frontier-market risk or development uncertainty, Perseus presents a compelling case: proven assets, proven management, and a balance sheet capable of funding both growth and shareholder distributions without recourse to equity or debt markets.

Company Overview

Perseus Mining operates as a multi-jurisdictional, African-focused gold producer with three mines in commercial production and a development portfolio anchored by the Nyanzaga project. The company is dual-listed on the Australian Securities Exchange and Toronto Stock Exchange under the ticker PRU, with a market capitalization of approximately A$5.8 billion and an enterprise value of A$4.5 billion as of September 2025.

The operational footprint spans the Edikan Gold Mine in Ghana (90% ownership), the Yaouré Gold Mine in Côte d'Ivoire (90%), and the Sissingué Gold Mine, also in Côte d'Ivoire (86%). Collectively, these assets have produced more than 4.2 million ounces since inception, with Edikan contributing 2.5 million ounces, Yaouré 1.1 million ounces, and Sissingué 550,200 ounces. Mineral resources across the portfolio total 7.4 million ounces (measured and indicated), with ore reserves of 5.0 million ounces supporting mine lives ranging from five years at Sissingué to over twelve years at Yaouré.

Perseus employs approximately 94% national workforce across its operations, with 13% female representation and a safety record in FY25 that saw total recordable injury frequency rates decline 43% to 0.6 per million hours worked. The company maintains ISO-aligned environmental management systems, zero significant environmental incidents in FY25, and alignment with the World Gold Council's Responsible Gold Mining Principles and Conflict-Free Gold Standard.

Key Development: Yaouré Underground Receives Presidential Approval

On September 18, 2025, Perseus announced receipt of a Presidential Decree from the Government of Côte d'Ivoire authorizing development of the CMA underground mine at Yaouré. The decree followed a comprehensive Environmental and Social Impact Assessment approval in May 2025 and formal endorsement from both the Ministry of Environment, Sustainable Development and Ecological Transition and the Ministry of Mines, Petroleum and Energy.

The CMA underground project represents the first underground gold mine development in Côte d'Ivoire and a technical shift for Perseus, which has historically operated exclusively via open-pit methods. The orebody comprises high-grade mineralization beneath the current CMA open pit, with development designed to access reserves via twin declines North 1115 (Assanou) and South 1120 (Blika) intake portals, with exhaust portals at North 1095 (Sika) and South 1105 (Pauline). Byrnecut has been appointed as primary mining contractor, with mobilization completed in April 2025.

Capex is budgeted at US$170 million, with first ore targeted for January 2026 and commercial production by March 2027. The underground operation will extend Yaouré's mine life to at least 2035 based on current resource models, with potential for further extensions through down-dip exploration. Integration with the existing 3.3-million-tonne-per-annum processing plant will enable incremental production without material processing capacity additions, enhancing capital efficiency and minimizing execution risk.

Strategic Significance

The Yaouré underground approval addresses a critical near-term challenge for Perseus: maintaining production growth and mine-life visibility in a portfolio where Edikan is entering mature-stage mining and Sissingué faces reserve constraints. By securing regulatory clearance and locking in contractor availability ahead of schedule, Perseus has de-risked execution and positioned the asset for a seamless transition from open-pit to combined open-pit-underground operations.

Côte d'Ivoire's regulatory framework lacks specific underground mining legislation, which historically delayed project approvals pending ad hoc decrees. The Presidential Decree granted to Perseus establishes precedent and demonstrates the government's commitment to supporting mine-life extensions and capital investment in the sector. This regulatory milestone enhances investor confidence in the jurisdiction and reinforces Perseus's strategic rationale for concentrating growth investments in Côte d'Ivoire, where the company now operates two of its three mines and has established deep government and community relationships.

From a portfolio perspective, Yaouré underground transforms the asset from a mid-life operation into a long-life cornerstone. The five-year production outlook assigns Yaouré 34% of group output, positioning it as the largest contributor alongside Nyanzaga (28% post-2027) and ahead of Edikan (28%) and Sissingué (10%). This concentration underscores the materiality of the underground development and the importance of on-time, on-budget execution to the group's growth trajectory.

Financial Performance: Record Profitability & Cash Generation

Perseus delivered exceptional financial results in FY25, capitalizing on gold price strength and operational discipline. Revenue of US$1.25 billion increased 22% year-over-year, driven by a 26% rise in average realized gold prices to US$2,543 per ounce, partially offset by a 2.6% decline in production volumes. Profit after tax of US$421.7 million represented a 16% increase, while profit before tax rose 21% to US$564.4 million, reflecting the operational leverage embedded in the cost structure.

EBITDA from operations reached US$740.3 million, up 18%, with EBITDA margins expanding to 59.3%. Operating cash flow surged 25% to US$536.7 million, or 39.11 cents per share, translating to US$1,086 per ounce produced. Notional cash flow defined as the product of cash margin (US$1,308/oz) and ounces produced totaled US$650 million, an increase of US$160 million versus FY24 and the highest in company history.

The balance sheet strengthened materially, with net cash and bullion rising US$240 million to US$827 million, comprising US$752 million in cash at bank and US$75 million in doré bullion. Perseus maintains a US$300 million undrawn revolving credit facility, providing total liquidity of US$1.13 billion. The company carries zero debt, delivering an enterprise value-to-EBITDA multiple of 4.3 times, versus ASX peer medians of 9.0 times and international peer medians of 10.8 times.

Operational Execution: Meeting Guidance Across All Sites

Group production of 496,551 ounces fell within the midpoint of FY25 guidance (469,709–504,709 oz), with all-in site costs of US$1,235 per ounce coming in below the bottom end of cost guidance (US$1,250–1,280/oz). This marked the fourth consecutive year Perseus has delivered production and cost outcomes within or better than guidance ranges, a track record that distinguishes the company in a sector prone to cost overruns and production disappointments.

Yaouré contributed 262,239 ounces at US$1,101 per ounce AISC, exceeding production guidance by 1.6% and undercutting cost guidance by 5%. The operation processed 3.2 million tonnes at a head grade of 1.52 grams per tonne gold, with metallurgical recoveries of 91%. Edikan produced 177,167 ounces at US$1,159 per ounce AISC, in line with production guidance and cost guidance mid-points, processing 5.4 million tonnes at 1.16 g/t Au with 89% recovery. Sissingué delivered 57,145 ounces at US$2,089 per ounce AISC, within guidance but reflecting the higher strip ratios and lower grades that characterize the asset's remaining reserves.

Safety performance reached historic highs, with total recordable injury frequency rates declining 43% to 0.6 and lost-time injury frequency rates falling 47% to 0.08. The company recorded zero fatalities among employees and contractors for the fourth consecutive year, underscoring the maturity of safety systems and the alignment of contractor and employee incentives.

Capital Returns: Dividends, Buybacks, & Shareholder Alignment

Perseus returned A$185.8 million to shareholders in FY25, comprising A$102.2 million in dividends (2.5 cents per share interim, 5.0 cents final) and A$83.6 million in on-market share buybacks. The full-year dividend of 7.5 Australian cents per share equates to a 1.75% yield at the September 2025 share price of A$4.28, exceeding the company's minimum 1% yield policy.

In August 2025, the board approved a further A$100 million on-market buyback program, citing valuation disconnect relative to peer multiples and cash generation capacity. The program will run for twelve months, with daily buyback volumes capped at 25% of average daily trading volume to minimize market impact. Cumulatively, Perseus has returned A$353.9 million to shareholders since FY21, including A$269.9 million in dividends and A$84 million in buybacks.

The capital allocation framework prioritizes balance sheet resilience, operational cash flow optimization, and discretionary capital deployment across growth investments, special dividends, and buybacks. Management targets net cash balances sufficient to sustain dividend policies under a range of gold price scenarios, with gearing limits set at zero and liquidity buffers maintained at six months of forecast operating costs.

Five-Year Outlook: Visibility to 2030

Perseus has published a five-year production and cost outlook projecting average annual output of 515,000–535,000 ounces at all-in site costs of US$1,400–1,500 per ounce. Total production over the period is forecast at 2.6–2.7 million ounces, with 93% of ounces derived from existing ore reserves and 7% from measured or indicated resources not yet converted to reserves.

Yaouré is expected to contribute 34% of group production, including incremental underground ounces commencing in FY27. Edikan will account for 28%, Sissingué 10%, and Nyanzaga 28%, with first production at Nyanzaga targeted for January 2027 following a final investment decision in April 2025. Development capital across the portfolio is budgeted at approximately US$878 million, excluding sustaining capital and exploration expenditures.

CEO Craig Jones, who assumed leadership following Jeff Quartermaine's transition, emphasized the continuity of Perseus's strategic direction in a statement accompanying the FY25 results.

Jones said:

"The plan is still the plan. Our focus now is on delivering the five-year outlook, ramping up Nyanzaga, extending mine lives through exploration, and continuing to run a safe, efficient business that delivers strong cash flows and returns capital to shareholders."

His comments underscore management's commitment to execution discipline and capital allocation priorities that have defined the company's track record.

Cost inflation is anticipated to average 3–5% per annum, driven by labor, energy, and consumables escalation, offset by productivity gains from underground mining efficiencies and grade improvements at Yaouré. The company targets year-on-year AISC variability within ±10% of the five-year average, reflecting portfolio diversification and operational flexibility.

Current Activities: Exploration & Resource Extension

Drilling programs at Nyanzaga have confirmed high-grade extensions at the Tusker deposit, with highlights including 63 meters at 6.49 g/t Au from 435 meters (hole NYZRCDD1351), 23 meters at 20.87 g/t from 496 meters (NYZRCDD1401), and 84 meters at 3.24 g/t from 339 meters (NYZRCDD1422). Phase 2 drilling completed in Q3 FY25 targeted down-dip extensions and infill drilling to upgrade inferred resources to indicated categories ahead of the planned reserve update in Q1 FY26.

At Yaouré, near-mine exploration focused on the CMA underground footwall and hanging-wall zones, with assays pending for 15,000 meters of diamond drilling completed in Q4 FY25. Edikan exploration targeted the Chirawewa and Esuajah North prospects, with reconnaissance programs identifying additional targets for follow-up drilling in FY26.

Sissingué exploration advanced the Fimbiasso and Bagoé satellite deposits, with resource updates expected in H1 FY26 to support mine-life extension studies. The company allocated US$25 million to group exploration expenditures in FY25, with FY26 budgets anticipated to rise to US$30 million as Nyanzaga drilling accelerates.

Sustainability Leadership: ESG Integration & Community Investment

Perseus refreshed its materiality assessment in FY25, refining the sustainability strategy around four pillars: People, Environment and Climate, Community and Economic Development, and Governance and Risk. The company increased the sustainability component of executive short-term incentive scorecards to 20%, up from 15%, aligning compensation with ESG outcomes.

Community contributions totaled US$5.63 million across Ghana and Côte d'Ivoire, supporting education, healthcare, infrastructure, and livelihoods programs. Local procurement reached US$545 million, representing 88% of total procurement spend and supporting 94% national employment across the workforce. Economic value distributed to host countries totaled US$813 million, including taxes, royalties, wages, and supplier payments.

Environmental performance included zero significant incidents, 9% total land rehabilitation against land disturbed, and emissions intensity of 0.56 tonnes CO₂e per ounce, in line with FY24. The company advanced tailings management alignment with the Global Industry Standard on Tailings Management, completing consequence classification assessments and appointing independent engineers of record for all facilities.

The Investment Thesis for Perseus Mining

• Diversify into African-focused producers if gold sustains above US$2,500/oz, targeting companies with net cash, sub-US$1,300 AISC, and mine lives exceeding ten years.
• Prioritize operators with underground development experience in jurisdictions lacking established regulatory frameworks, as execution risk concentrates value in proven teams.
• Weight portfolio allocations toward companies returning 10%+ of market cap annually through dividends and buybacks, signaling management confidence and shareholder alignment.
• Monitor first production milestones at Yaouré underground (Jan 2026) and Nyanzaga (Jan 2027) as catalysts for de-risking and potential re-rating.
• Assess EV/EBITDA multiples relative to three-year average EBITDA margins, targeting companies trading at discounts exceeding 50% to peer medians despite comparable or superior metrics.
• Consider balance sheet strength as a primary selection criterion, focusing on net cash positions exceeding US$500 million per 500,000 ounces of annual production.

Perseus Mining has delivered on its stated strategy of building a sustainable, geopolitically diversified gold business producing 500,000–600,000 ounces per annum with cash margins exceeding US$500 per ounce. The Yaouré underground approval de-risks mine-life extension, the FY25 financial performance demonstrates operational leverage to gold prices, and the balance sheet provides optionality to fund growth, acquisitions, or accelerated shareholder returns.

Valuation metrics suggest the market has not yet fully recognized the transformation. Perseus trades at 4.3 times EV/EBITDA versus peer medians of 9–10 times, despite delivering superior three-year average EBITDA per ounce (US$1,237 vs. US$904 for ASX peers), EBITDA margins (59.3% vs. 42.7%), and return on capital employed (20.3% vs. 8.3%). The "Africa discount" appears materially overdone given jurisdictional stability in Ghana and Côte d'Ivoire, regulatory momentum evidenced by the Yaouré decree, and operational consistency across four consecutive years of guidance delivery.

For investors, the thesis centers on multiple re-rating potential as Yaouré underground advances, Nyanzaga moves toward production, and management sustains its track record of capital discipline and shareholder alignment. The combination of growth visibility, cash generation, and valuation dislocation positions Perseus as a compelling opportunity in the mid-tier gold space.

TL;DR

‍Perseus Mining posted record FY25 profit of US$421.7M and cash flow of US$537M, secured Presidential approval for the US$170M Yaouré underground mine (extending life to 2035), and returned A$185.8M to shareholders while maintaining US$827M net cash. CEO Craig Jones confirmed strategic continuity, focusing on the five-year outlook and Nyanzaga ramp-up. The company projects 515k–535k oz/year at US$1,400–1,500/oz AISC through 2030, trades at 4.3x EV/EBITDA vs. peer medians of 9–10x, and offers investors a proven operator with growth visibility and capital discipline.

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