Perseus Mining Limited

Perseus reported quarterly gold production of 107,000 ounces, up 18,000 ounces from the December quarter. Weighted average all-in site cost was USD 1,748 per ounce versus USD 1,800 in the prior quarter, while realized gold sale price was $4,143/oz, up $706/oz quarter over quarter. Average cash margin was USD 2,394/oz and operating cash flow was USD 252 million from all operations; Lee-Anne also cited operating cash flow of $217 million in her cash bridge discussion. Cash and bullion finished at $817 million, up $62 million, and management said liquidity was USD 1.2 billion before excluding USD 245 million of liquid investments and the Meyas Sand proceeds; the company also noted an undrawn USD 400 million debt facility. FY26 guidance was reiterated at 400,000-440,000 ounces of gold and all-in site cost of USD 1,600-USD 1,760/oz.

Craig Jones characterized the quarter as strong operationally and strategically, highlighting improved production, lower costs, and progress at growth projects. He emphasized Nyanzaga’s reserve growth, longer mine life, and continued on-budget/on-schedule execution toward first gold in January 2027, while also calling the Meyas Sand sale the best use of capital and a way to redeploy resources into existing opportunities. His tone was upbeat but measured, with repeated references to manageable cost risks and continued monitoring of diesel supply.

Lee-Anne de Bruin said Perseus’ stronger operating performance, combined with the roll-off of the hedge book, supported capital management and cash generation. She highlighted quarter-end cash and bullion of $817 million, up $62 million, liquidity of USD 1.2 billion, a USD 400 million undrawn facility, and the exclusion of USD 245 million of liquid investments plus the Meyas Sand proceeds from that liquidity figure. She also cited $63 million invested in Nyanzaga, $18.6 million in CMA underground, $8 million in exploration, $42 million in taxes and royalties, $26 million of buyback spend at an average price of $5.39, and an interim dividend of $0.05 per share totaling $46 million.

Analysts focused on diesel exposure, Nyanzaga cost escalation, the use of proceeds from the Meyas Sand sale, and whether Aurum was a strategic or operationally linked investment. Management said diesel is about 10% of group all-in site cost, current supply risks are not seen as foreseeable, and fuel stocks are generally 1 to 2 weeks on site, with pricing pressure more of a concern than supply. On Nyanzaga, management said most major items are covered, about 60-something percent of the project is committed, and they are not seeing material escalation; on Meyas Sand, Craig said no special dividend decision has been made, and on Aurum he called it a strategic investment with potential proximity benefits but not a formal synergy play.