How Is Perseus Mining Managing Rising Costs Amid Falling Gold Output?
Perseus Mining reported a 5% revenue increase to US$608.5 million for the half-year ended December 2025, despite an 8% drop in net profit and a 26% decline in gold production. The company declared a steady interim dividend and outlined ongoing operational challenges and corporate restructuring.
- Revenue up 5% to US$608.5 million
- Net profit after tax down 8% to US$185.5 million
- Gold production decreased 26% to 188,841 ounces
- All-in site costs rose to US$1,649/ounce due to higher royalties and lower ore grades
- Interim dividend of 5.00 AUD cents per share declared
Financial Performance Overview
Perseus Mining Limited has released its interim financial results for the half-year ended 31 December 2025, revealing a mixed performance amid a challenging operational environment. The company posted a 5% increase in revenue to US$608.5 million, buoyed by higher gold prices, but net profit after tax declined by 8% to US$185.5 million compared to the same period last year.
This divergence reflects a 26% reduction in gold production to 188,841 ounces and a significant rise in all-in site costs (AISC) to US$1,649 per ounce, up from US$1,162 in the prior period. The cost increase was driven primarily by higher royalties, including an additional 2% royalty payment in Côte d’Ivoire, and lower ore grades at key mines.
Operational Highlights and Challenges
Perseus operates three gold mines in West Africa: Edikan in Ghana, and Sissingué and Yaouré in Côte d’Ivoire. Production at Yaouré reached 87,450 ounces at an AISC of US$1,519/ounce, while Edikan produced 71,208 ounces at US$1,566/ounce. Sissingué’s output was 30,183 ounces but at a notably higher AISC of US$2,226/ounce, reflecting the transition from the Fimbiasso satellite project to the higher-grade Bagoé project.
The company’s gold sales volume fell by 23% to 188,196 ounces, but the average sales price rose sharply by 38% to US$3,241 per ounce, cushioning revenue. Despite this, the increased costs and lower volumes weighed on profitability and cash flow, with net cash from operating activities down 22% to US$193.4 million.
Corporate Developments and Sustainability
During the period, Perseus undertook several corporate restructuring moves, including renaming and establishing new subsidiaries in Guinea and Malaysia, and consolidating ownership structures in Tanzania and the UK. The company also continued its share buy-back program, repurchasing over 1.6 million shares post-period.
On the sustainability front, Perseus maintained a strong safety record with a total recordable injury frequency rate of 0.83, though it mourned the tragic loss of two contract employees in a vehicle accident near its Bagoé Gold Mine. The company advanced its fatality risk management and community development initiatives, alongside progressing climate risk assessments aligned with its refreshed sustainability strategy.
Financial Position and Outlook
Perseus ended the half-year with robust net assets of US$2.47 billion, supported by cash reserves of US$683.1 million and strategic equity investments valued at US$228.7 million, including a 17.8% stake in Predictive Discovery Limited. The interim dividend of 5.00 Australian cents per share signals management’s confidence in the company’s financial stability despite operational headwinds.
Looking ahead, Perseus faces the challenge of managing rising costs and fluctuating production levels, particularly as it negotiates royalty arrangements with the Côte d’Ivoire government. The company’s development projects in Tanzania and Côte d’Ivoire remain critical to sustaining future growth and cost efficiencies.
Bottom Line?
Perseus Mining’s interim results underscore the balancing act between capitalising on strong gold prices and managing rising costs and production pressures in West Africa.
Questions in the middle?
- How will ongoing royalty negotiations in Côte d’Ivoire impact Perseus’s future cost structure?
- What are the prospects and timelines for ramping up production at the Nyanzaga and CMA Underground projects?
- How might foreign exchange losses influence Perseus’s financial performance in coming periods?
