Perseus Mining Limited delivered a robust March 2025 quarter with steady gold production, strong cash flow, and key project milestones including FIDs for the CMA Underground and Nyanzaga Gold projects.
- Gold production steady at 121,605 ounces with AISC of US$1,209/oz
- Cash and bullion balance grows to US$801 million with zero debt
- Final Investment Decisions taken for CMA Underground and Nyanzaga Gold Project
- A$100 million share buy-back approximately 33% complete
- Exploration and sustainability initiatives progress across multiple African assets
Operational Performance and Financial Strength
Perseus Mining Limited reported a solid operational and financial performance for the March 2025 quarter, maintaining gold production at 121,605 ounces at a competitive all-in-site cost (AISC) of US$1,209 per ounce. This steady output was achieved across its three operating mines: Yaouré and Sissingué in Côte d’Ivoire, and Edikan in Ghana. The company’s average cash margin remained robust at US$1,253 per ounce, generating a notional operating cash flow of US$152 million for the quarter.
Financially, Perseus strengthened its position with cash and bullion holdings rising to US$801 million, complemented by US$111 million in liquid listed securities. The company remains debt-free with an undrawn debt capacity of US$300 million, underscoring a strong balance sheet and liquidity profile that supports both operational needs and growth ambitions.
Project Development Milestones
Significant progress was made on key growth projects during the quarter. In January 2025, Perseus took an affirmative Final Investment Decision (FID) to develop the CMA Underground mining operation at the Yaouré Gold Mine. Byrnecut, an Australian underground mining specialist, has been appointed as the primary contractor, with mobilisation underway post quarter-end. This project is poised to extend Yaouré’s mine life to at least 2035, marking a strategic shift to mechanised underground mining in Côte d’Ivoire.
Following constructive negotiations with the Tanzanian government, Perseus also announced an FID for the Nyanzaga Gold Project. This large-scale open-pit development is forecast to produce over 2 million ounces of gold over an 11-year mine life, with average annual production exceeding 200,000 ounces from FY28 onwards. The project will be funded from Perseus’s strong cash reserves, reflecting confidence in its financial capacity to execute major capital investments.
Share Buy-Back and Capital Management
Perseus continued its disciplined capital management through an on-market share buy-back program valued at A$100 million. Approximately 33% of the buy-back has been completed, with over 11 million shares purchased and cancelled, reflecting the board’s commitment to returning value to shareholders while balancing growth investments.
Exploration and Sustainability Initiatives
Exploration activities remained active across Perseus’s African portfolio, with drilling programs advancing at Yaouré, Edikan, and Nyanzaga, among others. While some results are preliminary, ongoing efforts aim to expand mineral resources and extend mine life. Sustainability performance continues to be a priority, with the group maintaining a low Total Recordable Injury Frequency Rate (TRIFR) of 0.74 and achieving reductions in greenhouse gas emissions intensity. Social investments and local employment remain strong, supporting community relations and operational stability.
Hedging and Market Position
Perseus’s hedging strategy provides downside protection on approximately 24% of forecast gold production over the next three years, with put options safeguarding against price drops below US$2,600 per ounce while allowing participation in upside price movements. This balanced approach offers resilience amid gold price volatility.
Overall, Perseus Mining’s March quarter results reinforce its status as a well-managed mid-tier gold producer with a clear growth trajectory, underpinned by strong cash flow generation, strategic project development, and a commitment to sustainability and shareholder returns.
Bottom Line?
With robust cash reserves and key projects advancing, Perseus is well positioned to capitalise on future gold market opportunities.
Questions in the middle?
- How will the ramp-up of the CMA Underground impact Perseus’s production profile and costs in coming years?
- What are the risks and timelines associated with the Nyanzaga Gold Project’s development and first gold production?
- How might geopolitical uncertainties in Sudan affect the Meyas Sand Gold Project’s exploration and development prospects?