Perseus Mining Delivers Solid Quarterly Performance, Strengthens Financial Position

Perseus Mining has reported robust gold production for the June 2025 quarter, delivering 121,237 ounces at a weighted average All-In Sustaining Cost (AISC) of US$1,417 per ounce. The company successfully met both production and cost guidance for the June 2025 half-year and full FY25, while generating healthy cash margins of US$1,560 per ounce and notional operating cashflow of US$189 million.

The mid-tier gold producer achieved average gold sales of 131,242 ounces at a weighted average price of US$2,977 per ounce, capitalizing effectively on favorable gold market conditions. This performance has further bolstered Perseus’s already strong financial position, with available cash and bullion now standing at US$827 million.

“Our operations continue to perform exceptionally well across all metrics, providing the financial foundation for our growth strategy while maintaining returns to shareholders,” a company spokesperson noted.

The company remains debt-free with US$300 million in undrawn debt capacity, providing substantial flexibility to fund development projects and shareholder returns. This financial strength has been maintained despite significant outflows for the Nyanzaga Gold Project development, tax payments, dividends, and an ongoing share buyback program.

In a significant development, Perseus executed the Final Investment Decision for the Nyanzaga Gold Project during the quarter. Site works are accelerating on-budget and on-schedule, with first gold production targeted for January 2027. Recent outstanding infill drilling results position the company for a potential Mineral Resource and Ore Reserve upgrade in Q3 FY26, which could extend the mine’s operational life.

Perseus has outlined an ambitious five-year production outlook of 515,000-535,000 ounces per year at an average AISC of US$1,400-1,500 per ounce. However, FY26 guidance indicates a temporary dip to 400,000-440,000 ounces at US$1,460-1,620 per ounce, representing a transitional phase in the company’s production profile before Nyanzaga comes online.

Industry analysts view this temporary production decrease as part of a strategic mine sequencing approach across Perseus’s portfolio, with production expected to rebound strongly once Nyanzaga begins contributing to output in 2027.

The company continues to demonstrate a commitment to shareholder returns, with its A$100 million share buyback program approximately 73% complete. To date, 22,995,853 shares have been purchased and subsequently cancelled. The buyback operates between regulatory blackout periods, ensuring compliance with market rules.

Perseus has also achieved a record 12-month rolling average Total Recordable Injury Frequency Rate (TRIFR) of 0.60, significantly below industry averages. This safety milestone reflects the company’s focus on operational excellence and workforce protection, which typically correlates with more efficient and predictable production outcomes.

Market observers note that Perseus’s operational performance comes during a favorable gold price environment, with realized prices approaching US$3,000 per ounce. The company’s cost structure provides substantial margin protection even if gold prices moderate, giving it a buffer that many peers lack.

“Perseus has positioned itself as one of the more financially robust mid-tier gold producers, with a clear growth pathway and the capital to execute without straining its balance sheet,” commented a mining sector analyst at a major investment bank.

The diversified operational base across multiple African jurisdictions provides Perseus with geographic risk mitigation, while the development pipeline offers significant production growth potential. The five-year outlook suggests the company is positioned to increase annual output by approximately 30-35% compared to current quarterly run rates once Nyanzaga is fully operational.

For investors, Perseus presents an attractive proposition in the gold sector, combining operational delivery against guidance targets with exceptional financial flexibility uncommon among mid-tier producers. The zero-debt capital structure eliminates refinancing risks while creating options for further growth or enhanced shareholder returns.

The company’s substantial cash position also raises the possibility of potential acquisition opportunities that could accelerate growth beyond the organic development projects currently underway, though management has not indicated any immediate targets.

As gold continues to trade at historically strong prices, Perseus appears well-positioned to capitalize on market conditions while advancing its strategic growth initiatives.