Perseus Mining - Generating Sustainable Value Through Disciplined African Gold Production

• Perseus Mining is an African-focused gold mining company with three operating mines and two development projects.
• The company recently made a bid to acquire OreCorp, which owns the Nyanzaga project in Tanzania.
• Perseus focuses on generating cash flow and earnings by keeping costs low and producing as much gold as possible.
• The company has a strong balance sheet with no debt and is looking to return excess cash to shareholders through dividends.
• Perseus believes many gold industry M&A deals have been value-destructive and is very disciplined about only doing deals that create value.

About Perseus Mining

Perseus Mining is an Australian-listed gold mining company with a singular focus on Africa. The company operates three mines - two in Côte d'Ivoire and one in Ghana - and has two additional development projects in its pipeline. What sets Perseus apart is its strong track record of performance, generating significant cash flow and earnings by maintaining low costs and optimizing gold production at its African operations.

Interview with Chairman & CEO, Jeff Quartermaine

A Disciplined Approach to Growth

Perseus recently made headlines with an all-cash offer to acquire OreCorp and its Nyanzaga gold project in Tanzania. The deal, which is now over 80% accepted by Orca shareholders, is the latest example of Perseus' patient and disciplined approach to growth.

As CEO Jeff Quartermaine explains, "We actually have been in discussion with OreCorp for many years in fact and we've done due diligence a couple of times over but we could never quite get to the finishing line for one reason or another." The company was willing to walk away until the timing and terms were right.

This disciplined mindset also applies to Perseus' overall growth strategy. While the company looks to incrementally expand its production, the focus is on per ounce profitability rather than chasing scale for its own sake.

"Our focus is on producing as much gold at the lowest possible cost every single day," says Quartermaine. "Really it's about making cash. It's about making cash per share, it's about making cash per ounce, and that's the focus of our attention."

Expertise in Operating in Africa

A key part of Perseus' success has been its ability to navigate the complexities of operating in various African jurisdictions. Quartermaine emphasizes that viewing Africa as one homogeneous region is "totally wrong," explaining that "there's some very marked cultural differences, marked religious differences, differences in history, colonial history, etc."

Perseus manages this by having a clear set of core values - teamwork, integrity, commitment and achievement - that remain sacrosanct, while also having the flexibility to adapt its model to local circumstances. An example is a recent deal to sell gold to the Ghanaian government in exchange for local currency, which provided a win-win solution.

Protecting the Downside

While Perseus is enjoying expanded margins from higher gold prices, the company is making sure to protect itself in case of a downturn. It has a hedge book covering 25% of production over a three year period, using a disciplined approach of selling into its lowest price hedges as gold prices rise.

"If the gold price was to collapse, we wouldn't be able to generate that cash, but by hedging in the way we do, we can guarantee that we will generate a significant margin come what may," explains Quartermaine.

"We will enjoy the high gold prices while they last... But on the off chance that price falls, we'll be around and other people won't be."

The Investment Thesis for Perseus Mining

• Perseus offers investors exposure to the African gold sector via a company with a proven track record of operational execution and financial discipline. The company focuses on margin expansion and cash flow over simply growing production for its own sake.
• The company's strong balance sheet (with zero debt and ample cash) gives it flexibility. Perseus plans to return excess cash to shareholders via dividends, while also having dry powder for disciplined M&A.
• Perseus' bid for OreCorp shows its ability to capitalize on opportunities, but the company will walk away from deals that don't meet its value creation criteria.
• The experienced management team has expertise in navigating the nuances of operating successfully in diverse African jurisdictions.
• Downside protection comes from low costs, diversification across three operating mines, and an intelligently constructed hedge book.

In a gold industry where many companies have destroyed value through undisciplined M&A and poor capital allocation, Perseus Mining stands out for its focus on per-ounce profitability and its track record of execution. For investors looking for exposure to African gold production growth without excessive risk-taking, Perseus offers a compelling value proposition.

By combining operational excellence with financial prudence and disciplined growth, Perseus is well-positioned to continue generating strong returns for shareholders across the gold price cycle. In the words of CEO Jeff Quartermaine, "What we're seeking to do is to offer investors an opportunity to invest and get regular returns, to be consistent [and] provide an opportunity where people can invest and know full well that the company is going to continue to deliver more or less what we're doing well into the future."