Perseus Mining (TSE:PRU) reported a lower sequential gold production total for the September 2026 quarter but said output exceeded its internal plan, supported by continued cash generation from its three operating mines and progress at its Nyanzaga development project.
The company produced 92,551 ounces of gold during the quarter, with planned maintenance shutdowns and pit sequencing affecting output. Gold sales totaled 99,661 ounces at a realized price of $3,881 per ounce, resulting in notional cash flow of $171 million. Average production cost was $1,472 per ounce, while all-in site cost was $2,035 per ounce.
Perseus ended the quarter with $900 million in cash and bullion, no debt and $400 million of undrawn debt facilities. Chief Financial Officer Lee-Anne de Bruin said the company’s total liquidity position was $1.3 billion, excluding $338 million of liquid investments associated with PDI Gold and Aurum.
Operations and guidance
At Yaouré, the company’s CMA Underground operation entered commercial production on July 1. Underground ore mined rose 46% from the June quarter to 131,000 tonnes at 2.63 grams per tonne, while underground gold production increased 14% to 9,658 ounces.
Yaouré produced 36,648 ounces overall, including roughly 27,000 ounces from open pits. The site’s production was lower than the prior quarter but in line with plan because of major plant maintenance shutdowns. All-in site cost was $2,393 per ounce, slightly above plan, which the company attributed primarily to stronger-than-planned open-pit performance and accelerated stripping activity.
Management expects Yaouré production to rise in the second half of the financial year as the open pit reaches higher grades and underground mining increases both tonnage and grade. In response to an analyst question, the company said the expected underground improvement would be driven by “a combination” of higher volumes and grades as mining advances into higher-grade stopes.
Edikan produced 35,830 ounces, in line with expectations. Head grade declined sequentially to 0.67 grams per tonne because of pit sequencing, while scheduled maintenance reduced runtime. Higher mill throughput partly offset those factors. All-in site cost declined 11% to $1,738 per ounce, aided by lower royalties and a reversal of royalty over-accruals from the prior quarter.
Edikan sold 35,995 ounces at an average price of $3,968 per ounce, generating the group’s highest stated margin of $2,230 per ounce and notional cash flow of $80 million. The company spent $22.5 million on the Fetish and Esuajah North cutbacks during the quarter, after moving 6.7 million tonnes of waste. It has guided to approximately $140 million of cutback spending for the full year, with costs expected to rise as mining moves deeper and drill-and-blast work begins.
Sissingué produced 20,073 ounces, exceeding plan, although output was lower than the June quarter due to maintenance-related runtime reductions and lower grades. Higher throughput and recovery partly offset those effects. The operation sold 23,657 ounces at $3,811 per ounce and generated $38 million in notional cash flow.
Perseus maintained its fiscal 2027 guidance for production of 420,000 to 480,000 ounces at all-in site costs of $1,835 to $2,070 per ounce. The outlook includes 55,000 ounces from Nyanzaga, which is expected to begin production in January. The company said its cost assumptions use a gold price of $4,000 per ounce, while Nyanzaga costs are excluded from group cost guidance until commercial production is expected in the June 2027 quarter.
Nyanzaga advances toward first gold
The Nyanzaga project was 88% complete at the end of the quarter and remained on budget and on schedule for first gold in January 2027, according to the company. Perseus has incurred $407 million, or 84% of its $483 million project budget, in addition to $33 million of capitalized pre-production costs.
All major procurement has been completed and site installation contracts have been awarded. The company said commissioning personnel had mobilized, construction at the front end of the processing plant was nearing completion, and first ore was expected through the primary crusher and into the coarse-ore stockpile in the coming period.
Mining pre-strip activity reached the final investment decision budget target of 4.6 million bank cubic meters by the end of September, with first ore mined and stockpiled. Mining remains targeted to reach 7 million to 8 million bank cubic meters of pre-production material movement by January.
During the question-and-answer session, management said discussions regarding a mining contractor were progressing and that an update would be provided once commercial terms are finalized. The company also said it continues to assess acquisition opportunities but has nothing currently under consideration.
Capital returns and cash deployment
De Bruin said quarterly operating cash flow was $187 million, while growth-project capital investment totaled approximately $155 million. That included $110 million for Nyanzaga, $22.5 million for the Edikan cutbacks and $3.1 million for infrastructure associated with the CMA Underground project.
The company also spent about $5 million on exploration during the quarter as it established drilling contracts, with exploration expenditure expected to increase over the following nine months. Perseus has indicated it expects to spend $70 million to $80 million on exploration during the financial year.
The board has approved an on-market share buyback of up to A$350 million. By the end of September, the company had repurchased just over 1 million shares for approximately A$6.6 million, with one month of trading restrictions affecting activity.
Perseus also proposed an A$100 million special distribution, or approximately A$0.0754 per share, to be funded by proceeds from the sale of its Sudan project. Shareholders are scheduled to vote on a proposed capital reduction of up to A$70 million at the Nov. 30 annual general meeting. The company said the record date is Dec. 18 and payment is planned for Dec. 29, subject to shareholder approval and tax treatment considerations.
On safety, Perseus reported a total recordable injury frequency rate of one for the quarter and a lost-time injury frequency rate of zero. At Nyanzaga, the workforce had completed more than 10.9 million hours without a lost-time injury despite peak construction activity involving more than 4,200 people on site.
About Perseus Mining (TSE:PRU)
Perseus Mining Ltd is engaged in the exploration, evaluation, development, and mining of gold properties in West Africa. The company projects are Sissingue Gold Mine, Edikan Gold Mine in Ghana, and Yaoure Gold Project.
