Perseus Mining Posts Solid Results as Production Portfolio Transitions to Higher-Grade Ore Sources

• Craig Jones brings 15 years of operational and capital project experience from Newcrest Mining, focusing on Perseus's 5-year outlook with three operating mines and two major development projects in West Africa
• September quarter delivered industry-leading safety performance (6.0 TRIFR), 100,000 ounces production at $1,463/oz AISC, $161M operating cash flow, and net cash position of $837M
• Yaouré transitioning from higher-grade CMA pit to Yaouré pit; Edikan sequencing Nkosuo pit with grade improvements expected; Sissingué preparing higher-grade Bagoé ore for H2 production increase
• CMA Underground development commenced with 69 meters completed, targeting schedule recovery after 3-month delay; rock quality and cycle times exceeding expectations
• Nyanzaga Project tracking on-time, on-budget for Q1 2027 ramp-up with 1,000+ workers on site; mill fabrication ahead of schedule; additional drilling showing promising results for potential reserve update

Perseus Mining has entered a new chapter with Craig Jones stepping into the Managing Director and CEO role, bringing extensive operational expertise from 15 years at Newcrest Mining to guide the ASX and TSX-listed African gold producer through its ambitious five-year growth plan. Jones outlined his vision for maintaining Perseus's reputation for disciplined execution while advancing multiple development projects across West Africa.

Jones's appointment comes as Perseus transitions from founder-led management to professional operation, with the company boasting a strong balance sheet, three operating mines, and two significant development projects. His background in mining operations and capital projects across Australia, Indonesia, Papua New Guinea, and Canada positions him to oversee the company's expansion phase while maintaining the operational discipline that has defined Perseus's success.

Strategic Continuity with Operational Focus

Jones emphasised continuity rather than radical change in Perseus's strategic direction. The focus remains on delivering the five-year outlook presented to the market in June 2025, which centers on three key pillars: maintaining operating performance across existing assets, ramping up the Nyanzaga project by March quarter 2027, and developing CMA Underground as Perseus's first underground operation.

The company's strategic approach reflects Jones's belief in playing to organizational strengths. 

"You have to stick to your knitting. We are an African gold mining company and that's how Jeff (previous CEO) has built this company and that's where our strengths really lie."

This geographic focus doesn't preclude acquisitions outside Africa, but Jones indicated any such moves would require compelling strategic rationale and the ability to create value beyond what others could achieve.

Robust Quarterly Performance Underpins Growth Investment

Perseus's September quarter results demonstrated the operational consistency that provides cash flow to fund growth initiatives. The company produced just under 100,000 ounces at an all-in sustaining cost of $1,463 per ounce, generating $161 million in operating cash flow and ending the quarter with net cash and bullion of $837 million. Notably, the company achieved an industry-leading 12-month rolling total reportable injury frequency rate of 6.0, underscoring its safety culture.

The strong balance sheet positions Perseus to fund its capital program without additional financing. "We've got over $800 million of money in the bank," Jones noted, referencing the company's five-year outlook that includes more than $800 million in capital expenditure. This financial strength enables Perseus to maintain shareholder returns through a $100 million buyback program while simultaneously funding development projects.

Jones addressed the company's hedging strategy in the context of gold prices above $4,100 per ounce, defending the approach as prudent. 

"Gold's not always going to be at $4,100 an ounce and there is always downside protection that's needed." 

The company has evolved its hedging approach, focusing more recently on zero-cost collars and put options to maintain downside protection while maximising exposure to gold price upside as committed hedges roll off.

Yaouré: Managing Ore Source Transitions

The Yaouré operation in Côte d'Ivoire exemplifies the transitional phase affecting all Perseus mines. The operation completed mining in the higher-grade CMA open pit during the quarter and shifted entirely to the Yaouré pit, which presents both geological complexity and lower grades. "The Yaouré pit is a lower grade ore body than the CMA but it's also a more geologically complex body."

To address this transition, Perseus has enhanced grade control and mining practices, with reconciliation data showing improvement toward expected levels by quarter-end. However, Jones cautioned that lower grades will result in reduced production from Yaouré in coming quarters, representing a headwind to overall group production.

Simultaneously, the CMA Underground project represents Yaouré's long-term future. Development commenced with the first portal blast during the quarter, reaching 69 meters of development by late October. 

"The rock is great. We're seeing very good cycle times already and the quality of the rock and the quality of the mining is very good."

Despite starting three months behind schedule, the team is pursuing efficiency gains and design optimization to recover lost time, with the project positioned to extend Yaouré's life significantly through access to higher-grade underground ore.

Interview with Craig Jones, Managing Director & CEO of Perseus Mining

Edikan: Sequencing Challenges Being Resolved

At the Edikan operation in Ghana, Perseus faced access issues and weather-related challenges during the quarter as mining transitioned from the AG Pit and Fetish Pit to the Nkosuo Pit. Jones reported that the majority of access issues have been resolved, enabling the mine to return to proper sequence after mining around constraints. 

Heavy rainfall associated with the wet season complicated oxide ore mining, contributing to reconciliation challenges. However, Jones expressed confidence in the path forward. 

"We're moving into the dry season. We have access to get the mine back into sequence and we're not envisaging any issues on that moving forward." 

Importantly, the Nkosuo pit offers higher grades than previous sources, positioning Edikan for production increases over the next three quarters.

Pre-stripping for the next stages of Esuajah North and Fetish pits will commence in the second half, establishing ore sources for subsequent years and demonstrating the sequencing work required to deliver the five-year production plan.

Sissingué: Higher-Grade Ore on the Horizon

The Sissingué complex in Côte d'Ivoire, which includes the Sissingué processing facility and the Fimbiasso mine 60 kilometers away, is preparing for a significant grade uplift. The operation is establishing mining at Bagoé, specifically the Antoinette deposit, with contractors engaged and pre-strip preparation underway. 

"That ore is what feeds the Sissingué mill for the remainder of the year and it's much higher grade than what we're currently feeding at Sissingué."

The grade improvement should translate to increased production in coming quarters as Antoinette ore flows through the mill, blended with oxide material and fresh ore from Sissingué and Fimbiasso (though the Fimbiasso pit is nearing completion). First quarter costs at Sissingué were elevated due to both a planned maintenance shutdown and lower grades, but Jones anticipates costs will decline as higher-grade Bagoé ore reaches the mill and grades increase in line with guidance.

The sequential approach continues beyond Antoinette, with the Véronique deposit planned as the next ore source in the Bagoé complex, illustrating Perseus's systematic approach to maximising asset value through phased development of satellite deposits.

Nyanzaga: On Track for 2027 Ramp-Up

The Nyanzaga project in Tanzania represents Perseus's most significant near-term growth driver, targeting first gold production and ramp-up in the January 2027 quarter. Jones reported strong progress: 

"The Nyanzaga project is progressing very well, on time, on budget, which is what we like." 

With over 1,000 workers on site, the project has completed earthworks for processing facilities and infrastructure areas, with earthworks now focused on the tailings facility.

Construction momentum is evident across multiple fronts. Camp construction is advancing with roofs being installed on accommodation buildings ahead of occupation in the current quarter. Concrete work is progressing well in the mill area, including foundations for the ball mill, SAG mill, and crusher. Critically, the contract for the power line and transformer has been awarded to provide permanent power, and fabrication of the ball and SAG mills on the project's critical path is ahead of schedule.

Beyond construction, ongoing drilling at Nyanzaga has yielded promising results. 

"We're seeing very promising results out of that additional drilling and we're actually looking to potentially release another reserve and resource update later this year. Nyanzaga will be one of our foundation assets for quite some time in the portfolio."

Capital Allocation and M&A Philosophy

Jones articulated a disciplined approach to capital allocation that balances shareholder returns, organic growth investment, and potential acquisitions. The company's strong balance sheet eliminates near-term debt requirements, as current cash flows can fund all planned capital expenditures. 

"At this stage, there's no need for us to take any debt. We can fund all of our aspirations through the cash that we have on the balance sheet."

On mergers and acquisitions, Jones emphasised value creation through accretive transactions aligned with Perseus's core competencies. 

This focus on African gold assets reflects both the company's expertise in building and operating mines in the region and the practical advantage of extending existing operations where infrastructure and relationships are established.

The exploration focus centers on extending asset lives rather than pursuing greenfield opportunities. 

"There's only a limited amount of ore bodies that exist, so you have to be able to see something in ore bodies that others don't. Our focus really is to look at extending the life of our existing assets. We've got invested capital in the countries that we operate, we've got experience in the countries we operate, and being able to continue to build on that is something that's important to us."

Outlook & Leadership Priorities

Looking ahead, Jones outlined personal goals centered on maintaining Perseus's culture and reputation. 

"For Perseus to be a respected and trusted partner in the countries that we operate is critical. Having Perseus's culture of delivering on its promises and the can-do attitude - I think that's what really differentiates this company and a company that's respected by its owners and stakeholders for what it does and how it does it."

This emphasis on execution and stakeholder relationships reflects Jones's understanding that operational excellence and community partnerships form the foundation for long-term value creation in Africa's mining sector. With multiple projects simultaneously advancing, maintaining this execution culture while managing complexity will define success in the coming years.

Perseus Mining enters this new leadership era with operational momentum, financial strength, and a clear roadmap for growth. Jones's focus on delivering existing commitments, extending asset lives through exploration, and maintaining disciplined capital allocation positions the company to build on its track record of creating value through African gold mining.

The Investment Thesis for Perseus Mining

• Strong Financial Position: Net cash and bullion of $837M provides full funding for $800M+ five-year capital program without debt, while supporting continued shareholder returns through $100M buyback program
• Production Growth Pipeline: Nyanzaga project (Q1 2027 ramp-up) and CMA Underground development provide clear path to production growth beyond current ~400,000 oz/year run rate from three operating mines
• Proven African Execution: Track record of building and operating mines on time and budget in West Africa reduces development risk; industry-leading safety performance (6.0 TRIFR) demonstrates operational excellence
• Low-Cost Production: Q3 AISC of $1,463/oz with $161M quarterly operating cash flow provides robust margins at current gold prices and strong cash generation to fund growth
• Disciplined Capital Allocation: Management philosophy emphasises accretive acquisitions, sticking to core competencies in African gold, and value creation over growth for growth's sake
• Grade Improvements Coming: Transitional period across all sites positions for higher grades in coming quarters as Nkosuo (Edikan), Bagoé/Antoinette (Sissingué) ore sources come online, improving production and unit costs
• Geographic Diversification: Operations across Côte d'Ivoire, Ghana, and Tanzania spread jurisdiction risk while maintaining regional expertise and potential operational synergies

Macro Thematic Analysis

Perseus Mining exemplifies the compelling investment case for intermediate gold producers with African exposure as gold prices test record highs above $4,000/oz. The company's 100,000 oz quarterly production at $1,463/oz AISC generates substantial free cash flow in the current price environment, enabling simultaneous development capital deployment and shareholder returns without leveraging the balance sheet. The African focus offers exploration upside and development opportunities at valuations substantially below developed markets, while Perseus's demonstrated ability to build and operate mines profitably in the region addresses the key risk concern. Jones's strategic continuity and disciplined capital allocation approach - "you have to be able to bring something to the table when you're looking at these acquisitions" - positions Perseus to compound value through organic growth and selective M&A as gold's macro tailwinds persist, driven by central bank buying, monetary policy uncertainty, and geopolitical tensions supporting safe-haven demand.

TL;DR:

Perseus Mining's new CEO Craig Jones brings operational expertise to execute the company's five-year growth plan, underpinned by a fortress balance sheet with $837M net cash funding development without debt. Near-term production growth comes from the on-schedule, on-budget Nyanzaga project (Q1 2027 ramp-up) and CMA Underground, while all three operating mines transition to higher-grade ore sources in coming quarters. Strong operating cash flow ($161M quarterly) enables continued shareholder returns alongside growth investment, with exploration upside from drilling programs showing promising reserve extension potential across the portfolio.

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