Perseus Mining reported a robust June quarter with 109,013 ounces of gold produced at an AISC of US$1,941/oz, record FY26 cashflows of US$769 million, and Nyanzaga Gold Project 67% complete on track for January 2027 production.
- Q4 FY26 gold production of 109,013 ounces at US$1,941/oz AISC
- Record FY26 notional operating cashflow of US$769 million
- Nyanzaga Gold Project 67% complete, first gold expected January 2027
- Share buyback increased to A$150 million
- Sustainability performance stable with no significant incidents
Record Cash and Bullion Holdings Surpass US$1 Billion
Perseus Mining (ASX:PRU) closed the June 2026 quarter with cash and bullion holdings exceeding US$1 billion for the first time, a milestone underpinned by strong operational cashflows. The group reported a notional operating cashflow of US$216 million for Q4 FY26, contributing to a record full-year FY26 cashflow of US$769 million. This robust cash position supports Perseus’s ongoing growth investments and an upsized A$150 million share buyback program, reflecting the board’s confidence in the company’s financial strength.
Solid Production Across West African Mines with Rising Costs
Gold production across Perseus’s three operating mines, Yaouré and Sissingué in Côte d’Ivoire, and Edikan in Ghana, totalled 109,013 ounces in the quarter, a 2% increase over the previous quarter. However, the weighted average All-In Site Cost (AISC) rose 11% to US$1,941 per ounce, driven by higher site and royalty costs, notably in Ghana following a new scaled royalty effective March 2026. Despite these cost pressures, the company maintained an average cash margin of US$2,145 per ounce.
Yaouré’s open pit production declined 13% quarter-on-quarter to 30,440 ounces due to adverse weather and lower ore grades, while the newly commenced CMA Underground stoping contributed 8,472 ounces ahead of commercial production. Edikan’s output dropped 7% to 41,940 ounces, impacted by lower head grades and increased mining costs, including elevated diesel prices and blasting volumes. Sissingué improved production by 11% to 28,161 ounces, benefiting from higher-grade ore from the Antoinette pit at Bagoé.
Nyanzaga Gold Project Progresses On Schedule
The Nyanzaga Gold Project in Tanzania reached 67% overall completion by the end of the quarter, with all major procurement and site installation contracts awarded and mobilised. Despite global supply chain challenges, the project remains on budget and on track for first gold production in January 2027. Key milestones include completion of permanent accommodation, significant progress on the 220kV grid connection, and accelerated mechanical installation of process plant components such as the SAG mill and CIL tanks. Operational readiness activities are advancing as planned, positioning Nyanzaga for a transformational FY27.
Exploration and Resource Growth Across Multiple Jurisdictions
Perseus continued its exploration momentum with drilling campaigns across Côte d’Ivoire, Ghana, Tanzania, and Guinea. At Yaouré, drilling at ROZA and Waste Dump Extension yielded encouraging results, including intercepts up to 16m at 3.91 g/t gold. Sissingué’s Papara and Zanikan prospects confirmed mineralisation continuity with high-grade hits such as 3m at 37.63 g/t. In Ghana, Edikan’s infill drilling and geotechnical programs advanced resource confidence, while Tanzanian drilling at Ifugandi identified new targets along a major shear zone. Guinea’s newly granted reconnaissance licenses set the stage for upcoming surface sampling programs.
Sustainability and Governance Remain Core Focuses
Perseus maintained a stable sustainability performance, finishing FY26 without lost time injuries and recording a Total Recordable Injury Frequency Rate (TRIFR) of 0.87. Environmental stewardship continued with zero significant incidents and ongoing rehabilitation efforts. The company’s social contributions amounted to US$388 million in the quarter, with local employment at 94% and a slight increase in female workforce representation to 12.78%. Governance enhancements include expanded fatigue monitoring and development of the Safety Home Every Day program, alongside preparations for forthcoming Australian climate-related financial disclosures.
Capital Management and Hedging Strategies
Perseus’s balance sheet remains debt-free, bolstered by the US$260 million proceeds from the Meyas Sand Project sale completed earlier in the year. The company has repurchased 24.1 million shares at an average price of A$5.24, representing 84% completion of the upsized A$150 million buyback. Hedging positions were modestly reduced, with committed fixed forwards and call options covering 115,000 ounces (7% of three-year production forecast) and uncommitted put options covering 200,000 ounces, providing downside price protection at US$2,625 per ounce.
Bottom Line?
Perseus’s record cash reserves and advancing Nyanzaga project set the stage for a pivotal FY27, though rising costs and operational variability warrant close monitoring.
Questions in the middle?
- How will Perseus manage rising AISC pressures amid royalty hikes and inflationary costs?
- Can the Nyanzaga Gold Project maintain its tight schedule to deliver first production by January 2027?
- What impact will the increased share buyback have on Perseus’s capital structure and shareholder returns?