Perseus Underground Approval Extends Mine Life to 2035

• Perseus Mining secured Côte d'Ivoire's first-ever underground mining approval via Presidential Decree on September 18, 2025, clearing the path for the US$170 million CMA Underground Project at Yaouré Gold Mine.
• The underground development extends Yaouré's operational life to at least 2035, with first ore production scheduled for January 2026 and commercial production by March 2027.
• Spot gold reached all-time highs of US$3,875.32 per ounce on October 1, 2025, driven by U.S. government shutdown concerns, weak labor data, and safe-haven demand creating an optimal pricing environment for gold producers.
• Infrastructure supporting underground operations is already completed, mining contractor Byrnecut has been engaged, and underground equipment commissioning is underway, reducing typical development risks.
• Director John McGloin's sale of 500,000 shares at A$4.8167 on September 26, 2025, represents normal portfolio management while retaining 141,400 shares, demonstrating continued alignment with shareholder interests.

Introduction

Gold producers with operational mines, expansion-ready projects, and jurisdictional advantages occupy a privileged position in the current market environment. Perseus Mining Limited (ASX/TSX: PRU) has secured all three elements simultaneously. As spot gold prices breached US$3,860 per ounce in early October 2025 representing a year-to-date gain exceeding 47 percent the company obtained presidential authorization for Côte d'Ivoire's inaugural underground mining operation. This convergence of favorable commodity pricing and project de-risking creates a compelling entry point for investors seeking leveraged exposure to gold's sustained rally.

The approval of the CMA Underground Project follows a methodical permitting process that included Environmental and Social Impact Assessment clearance in May 2025 and culminated with President Alassane Ouattara's decree on September 18, 2025. The US$170 million investment extends the Yaouré Gold Mine's operational horizon by more than a decade, transforming a mid-life asset into a long-term production platform. With infrastructure already constructed and mining contractor mobilization underway, Perseus has eliminated the typical 18-to-24-month lag between approval and development that characterizes most underground projects.

Market conditions reinforce the strategic timing of this expansion. The U.S. dollar index fell to a one-week low in early October, making dollar-priced gold cheaper for international buyers and supporting sustained demand. Political deadlock over U.S. government funding, combined with soft labor market data showing marginal job opening growth and declining hiring rates, has elevated rate cut expectations. Analysts have established price targets ranging from US$3,900 to US$4,000 per ounce, providing a favorable revenue backdrop for producers advancing shovel-ready projects.

Company Overview

Perseus Mining operates three gold mines across West Africa: Edikan in Ghana, Sissingué in Côte d'Ivoire, and Yaouré in Côte d'Ivoire. The company maintains a Toronto Stock Exchange and Australian Securities Exchange dual listing, providing access to North American and Asia-Pacific capital markets. Production targets referenced in the September 19, 2025 announcement are underpinned by JORC Code Ore Reserves, with the most recent resource update released on August 21, 2025.

The Yaouré Gold Mine, located in central Côte d'Ivoire, commenced operations in 2022 and has established itself as a cornerstone asset in Perseus's portfolio. The site currently operates an open-pit mine at the CMA deposit, where high-grade mineralization extends below the economic pit limit. Geological continuity and grade consistency identified through systematic drilling campaigns provided the technical foundation for the underground expansion proposal submitted to Ivorian authorities in 2024.

Perseus has demonstrated operational execution capability across its three-mine portfolio, maintaining production guidance and managing jurisdictional relationships in Ghana and Côte d'Ivoire. The company's track record of securing permits, constructing projects within budget parameters, and achieving commercial production timelines establishes credibility for the underground development schedule. Management's ability to navigate West African regulatory frameworks demonstrated through the CMA approval process positions the company to replicate this permitting success at future expansion opportunities.

Key Development: Presidential Approval & Project Advancement

The Presidential Decree issued on September 18, 2025 represents the final regulatory hurdle for underground development at Yaouré. Chief Executive Officer Jeff Quartermaine, who leads Perseus Mining's strategic direction and oversees the company's three-mine West African portfolio, characterized the decree as significant for operational momentum. Quatermaine noted:

"The grant of the decree is a major milestone for Perseus and will enable the immediate commencement of decline development at CMA. The delay in issuing the decree has had the benefit of allowing us to complete all the infrastructure projects required to support the underground operation and the commissioning of the underground mining equipment."

The decree followed Environmental and Social Impact Assessment approval and a Ministerial Arrêté issued in May 2025, completing a nine-month regulatory review process that included stakeholder consultation and technical evaluation by Côte d'Ivoire's Ministry of Mines, Petroleum and Energy. This methodical approach ensured comprehensive assessment of environmental impacts, community engagement requirements, and technical feasibility before final authorization.

The engagement of Byrnecut as underground mining contractor provides operational expertise and execution certainty. Byrnecut maintains an established presence across African underground mining operations, with experience in similar geological environments and regulatory jurisdictions. The contractor's involvement de-risks the technical aspects of decline development, ore extraction, and ground support installation during the critical ramp-up phase. First ore production is scheduled for January 2026, with commercial production targeted for March 2027 a 17-month timeline from decree to commercial output that reflects the advanced state of project readiness.

Strategic Significance: Mine Life Extension & Capital Efficiency

The underground development extends Yaouré's operational life to at least 2035, adding more than a decade of production beyond the current open-pit reserve base. This extension transforms the asset's valuation profile by converting an operation with limited remaining life into a long-term cash flow generator. Mine life visibility provides strategic flexibility for capital allocation, exploration investment, and downstream processing optimization that shorter-life operations cannot justify.

The US$170 million capital investment required for underground development represents a moderate commitment relative to greenfield project construction, where comparable gold mines typically require US$400 million to US$600 million in initial capital. Perseus benefits from existing processing infrastructure, tailings facilities, power supply arrangements, and workforce accommodation constructed during the open-pit development phase. Incremental capital focuses exclusively on underground-specific infrastructure: ventilation systems, underground crushing stations, ore handling conveyors, and mine services. This capital efficiency improves project economics and accelerates payback periods compared to standalone developments.

Quartermaine, who has led Perseus through multiple development phases across West Africa, emphasized the broader strategic implications of the investment:

"The underground development of CMA involves an investment of approximately US$170 million and demonstrates our deepened partnership with the Government and the people of Côte d'Ivoire."

This positioning acknowledges the political dimension of major mining investments in West African jurisdictions, where government relationships influence permitting timelines, fiscal stability, and operational continuity. The Presidential Decree's direct authorization by President Ouattara rather than delegation to ministerial levels signals government prioritization of the project and reduces future regulatory uncertainty.

Market Context: Gold Price Dynamics & Safe-Haven Demand

Gold's advance to record highs in early October 2025 reflects multiple reinforcing factors that extend beyond typical cyclical patterns. Spot gold prices reached US$3,875.32 per ounce on October 1, while December futures contracts traded at US$3,887.40 a premium structure indicating strong near-term demand. The 47 percent year-to-date gain surpasses returns from equity indices, fixed income instruments, and most commodity sectors, establishing gold as the dominant-performing asset class in 2025.

The U.S. government shutdown resulting from Congressional funding deadlock has delayed economic data releases and elevated policy uncertainty. This political impasse occurred simultaneously with Jobs and Labor Turnover Survey data showing marginal growth in job openings and declining hiring rates, raising expectations for Federal Reserve interest rate reductions. Lower rates decrease the opportunity cost of holding non-yielding gold assets, supporting price appreciation. The dollar index decline to a one-week low further amplified gold's attractiveness for international buyers, as currency-adjusted prices improved for non-U.S. purchasers.

Analyst projections establish price targets ranging from US$3,900 to US$4,000 per ounce, with some market participants suggesting further upside if current drivers persist. Silver reached a 14-year high near US$46.90 per ounce, confirming broad-based precious metals strength. Risks to the rally include potential dollar strengthening, Federal Reserve policy shifts toward hawkishness, or resolution of U.S. fiscal negotiations. However, the confluence of monetary policy expectations, geopolitical tensions, and weak economic indicators suggests sustained support for elevated gold prices through 2026, providing revenue stability for producers like Perseus advancing capital projects.

Current Activities: Infrastructure Completion & Development Timeline

Perseus has completed infrastructure projects supporting underground operations ahead of decline development commencement. This preparatory work included ventilation shaft construction, underground access portal preparation, power distribution network expansion, and mine services installation. The company's decision to advance infrastructure construction during the permitting review period assuming regulatory approval accelerated the project timeline but introduced execution risk if authorization had been denied. The Presidential Decree's issuance validated this strategic approach, eliminating several months of post-approval construction that competitors typically face.

Underground equipment commissioning is underway, with specialized machinery including jumbo drills, load-haul-dump units, underground trucks, and ground support installation equipment being tested and calibrated. Byrnecut's mobilization includes technical personnel transfer, safety system implementation, and operational procedure development tailored to Yaouré's geological conditions. The contractor's experience in similar West African underground environments reduces the learning curve associated with new mine development and improves early-stage productivity.

The January 2026 target for first ore production represents a 15-month timeline from Presidential Decree to initial ore extraction an aggressive schedule reflecting the advanced state of project readiness. Commercial production by March 2027 allows a 14-month ramp-up period during which mining rates gradually increase to design capacity, ground conditions are characterized, and processing plant throughput is optimized for underground ore characteristics. This measured approach balances production growth ambitions with operational prudence, reducing the likelihood of technical setbacks that have affected other underground projects during commissioning phases.

Director Transaction: Analyzing the McGloin Share Sale

Director John Francis Gerald McGloin sold 500,000 Perseus shares on September 26, 2025 at A$4.8167 per share through an on-market transaction. The disposal reduced his indirect holdings from 641,400 shares to 141,400 shares, representing a 78 percent reduction in position size. The shares were held through TD Direct Investing Nominees (Europe) Ltd as nominee, indicating the holdings were maintained in a European brokerage account rather than direct beneficial ownership.

The timing of the transaction eight days after the Presidential Decree announcement initially appears concerning, as director selling following positive corporate developments can signal skepticism about future performance. However, several contextual factors suggest alternative interpretations. First, the sale price of A$4.8167 per share occurred during a period of elevated gold prices and positive corporate news flow, representing a rational exit point for portfolio diversification or liquidity needs unrelated to company prospects. Second, McGloin retained 141,400 shares, maintaining material exposure to Perseus's performance and preserving alignment with shareholder interests.

Director share transactions require disclosure under ASX Listing Rule 3.19A.2 within two business days of the change in interest, providing transparency but limited context regarding motivations. Personal liquidity requirements, tax planning considerations, estate planning objectives, or portfolio rebalancing among concentrated positions represent legitimate non-company-specific reasons for director selling. The absence of coordinated selling by other directors or executive management suggests the transaction reflects individual circumstances rather than collective concerns about Perseus's outlook. Investors should monitor subsequent director transactions for patterns indicating broader confidence shifts, while recognizing that isolated sales by individual directors do not necessarily signal fundamental deterioration.

The Investment Thesis for Perseus Mining

• Position in a mid-cap gold producer with operational mines during a period when spot prices exceed US$3,860 per ounce and analysts project further gains toward US$4,000. Every US$100 increase in realized gold prices improves operating margins by approximately 15-20 percent for established producers, directly enhancing free cash flow generation.
• Allocate capital to companies advancing permitted projects with completed infrastructure and engaged contractors, reducing typical development risks. Perseus's January 2026 first ore target and March 2027 commercial production timeline provide visible catalysts for re-rating within 15-18 months.
• Prioritize producers transforming mid-life assets into long-duration operations through underground extensions. The decade-plus mine life addition at Yaouré establishes sustained cash flow visibility that supports dividend capacity, exploration investment, and acquisition optionality unavailable to shorter-life operators.
• Focus on brownfield underground developments requiring US$150-200 million in incremental capital rather than US$500-700 million greenfield projects. Lower capital intensity accelerates payback periods and reduces financing requirements, improving returns on invested capital during project ramp-up phases.
• Consider producers operating in jurisdictions demonstrating tangible government backing through Presidential Decrees and ministerial engagement. Côte d'Ivoire's political stability relative to other African gold regions, combined with its first underground mine designation, suggests prioritization of mining sector development and reduced nationalization risk.
• Evaluate companies with producing mine portfolios that provide cash flow stability during individual project development phases. Perseus's three-mine operation ensures revenue continuity while Yaouré underground advances, contrasting with single-asset developers vulnerable to operational disruptions or permitting delays.

Perseus Mining offers a straightforward opportunity for investors looking to benefit from high gold prices. With gold currently trading above US$3,860 per ounce and the company's mine now approved to operate until 2035, Perseus has locked in over a decade of production during favorable market conditions. The US$170 million investment is relatively modest compared to building a new mine from scratch, meaning the company can start generating returns faster with less financial risk.

The timeline is clear and achievable. First ore comes out of the ground in January 2026 just over a year away. Full commercial production begins in March 2027. This isn't a distant promise; it's an imminent reality. The infrastructure is already built, the mining contractor is hired and mobilizing, and the equipment is being commissioned. These are tangible milestones that reduce uncertainty.

For investors, the key takeaway is simple: Perseus is a producing gold miner expanding operations during record gold prices. The company operates three mines that generate cash flow today, providing stability while the underground project ramps up. The Presidential approval from Côte d'Ivoire's president himself signals strong government support, reducing political risk. Investors seeking exposure to gold without the high-risk profile of exploration companies or the complexity of unproven development projects should consider Perseus as a balanced option with near-term catalysts and long-term production visibility.

TL;DR

Perseus Mining secured Côte d'Ivoire's first underground mining approval for its $170M Yaouré expansion that extends mine life to 2035, with infrastructure complete and first ore production starting January 2026, perfectly timed as gold hits record highs above $3,875/oz.

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