Rising Development Costs at CMA Underground Pose Risks to Perseus’s Five-Year Plan

A Confident Five-Year Production Outlook

Perseus Mining Limited has unveiled a detailed five-year gold production and cost outlook spanning fiscal years 2026 through 2030. The company anticipates producing between 2.6 and 2.7 million ounces of gold, averaging roughly 515,000 to 535,000 ounces annually across its four African mines located in Ghana, Côte d’Ivoire, and Tanzania. This projection underscores Perseus’s ambition to sustain or exceed the half-million-ounce production milestone it first achieved in FY22.

The forecast is anchored by a weighted average All-In Site Cost (AISC) estimated between US$1,400 and US$1,500 per ounce, with year-on-year fluctuations capped within ±10%. This cost stability reflects the benefits of Perseus’s diversified portfolio approach, balancing open-pit and underground operations across multiple jurisdictions.

Key Projects Driving Growth

Central to the outlook are two major projects – the CMA underground mine at the Yaouré Gold Mine in Côte d’Ivoire and the Nyanzaga Gold Project in Tanzania. The CMA underground project, which received final investment approval in early 2025, is expected to contribute approximately 20% of Yaouré’s ore production once operational. Notably, the development capital for CMA underground has increased by 36% to US$170 million, reflecting accelerated underground development and revised capitalisation methods.

Nyanzaga, acquired and developed following the deferral of the Meyas Sand Gold Project in Sudan, is forecast to be the lowest-cost operation in Perseus’s portfolio. It is expected to produce between 725,000 and 750,000 ounces over five years at an AISC of US$1,230 to US$1,330 per ounce, reinforcing the strategic pivot towards assets with strong growth potential and operational synergies.

Financial Strength and Capital Allocation

Perseus’s financial position remains robust, with over US$1.1 billion in combined cash and undrawn debt capacity. This liquidity supports the US$878 million development capital planned over the five-year period and provides flexibility for future growth initiatives and shareholder returns. The company’s capital allocation policy prioritises maintaining a resilient balance sheet, delivering consistent operational performance, and judiciously deploying discretionary capital.

Operationally, Perseus expects strong cash operating margins exceeding US$500 per ounce at a long-term gold price of US$2,400 per ounce, a figure that bodes well for profitability even amid potential market fluctuations. The company’s mine plans are underpinned by high geological confidence, with 93% of forecast production ounces sourced from existing Ore Reserves and the remainder from Measured or Indicated Mineral Resources, deliberately excluding less certain inferred resources.

Outlook by Mine

Yaouré remains a cornerstone asset, contributing about 34% of the group’s production with a five-year output between 870,000 and 905,000 ounces at an AISC of US$1,480 to US$1,580 per ounce. Edikan in Ghana is projected to produce 720,000 to 750,000 ounces, supported by expansions such as the Fetish and Esuajah North cutbacks, while Sissingué in Côte d’Ivoire is expected to deliver 265,000 to 275,000 ounces at a higher AISC range of US$1,580 to US$1,680 per ounce.

The company is also advancing feasibility studies for the Esuajah South underground deposit at Edikan, which could extend mine life and diversify production sources further into the next decade.

Strategic Implications

Perseus’s five-year plan reflects a balanced approach to growth and risk management, leveraging its established African footprint and operational expertise. The company’s pivot away from Sudan’s Meyas Sand project towards Nyanzaga signals a strategic focus on assets with clearer development pathways and geopolitical stability. With strong cash flow generation and disciplined capital deployment, Perseus is well positioned to navigate market uncertainties while delivering value to shareholders.