Perseus Mining delivered 92,551 ounces in the September quarter, exceeding its Q1 FY27 production plan while retaining full-year guidance. The bigger catalyst is Nyanzaga, now 88.4% complete and still targeting first gold in January 2027, as the company expands shareholder returns.
- 92,551 ounces produced at US$2,035 per ounce All-In Site Cost
- FY27 guidance maintained at 420,000-480,000 ounces
- Nyanzaga reaches 88.4% completion and remains on schedule
- A$350 million buyback approved alongside proposed A$100 million distribution
- US$900 million in cash and bullion with zero debt
Nyanzaga moves into the final stretch
Perseus Mining (ASX:PRU) has cleared the first operational hurdle of FY27, producing 92,551 ounces of gold in the September quarter and exceeding its internal plan. But the more consequential number is 88.4%: that is the completion level reached by its Nyanzaga Gold Project in Tanzania, which remains scheduled to produce first gold in January 2027.
Nyanzaga has now incurred US$407.6 million of construction and operational-readiness expenditure against an approved US$483 million development budget. The company says the project remains on budget and on schedule, with commissioning personnel mobilised, first ore stockpiled and key process-plant, tailings and power infrastructure advancing. The project had reached the Nyanzaga 67% milestone in July, when first gold was also targeted for January 2027.
Mining has achieved the budgeted 4.6 million bank cubic metres of pre-strip, while Perseus plans to move 7.0 million to 7.7 million cubic metres before the first gold pour. The company’s FY27 guidance includes approximately 55,000 ounces from Nyanzaga, although further guidance is due in the third quarter after the project progresses towards commercial production.
Quarterly output fell, but guidance held
Group production was lower than the 109,013 ounces recorded in the June quarter, while All-In Site Cost rose from US$1,941 to US$2,035 per ounce. Perseus attributed the higher cost mainly to major planned maintenance across its three operating mines. The quarter still generated a US$1,846 per-ounce cash margin and US$171 million in notional operating cashflow, based on an average realised gold price of US$3,881 per ounce.
Yaouré produced 36,648 ounces, including 9,658 ounces from the CMA Underground operation after commercial production began on 1 July. Production was affected by lower mill run-time during planned maintenance, but Perseus expects output to build as the open pit reaches higher-grade ore and underground tonnes and grades increase. The mine’s AISC was US$2,393 per ounce, above group levels and slightly above expectation.
Edikan produced 35,830 ounces at a US$1,738 per-ounce AISC, while Sissingué produced 20,073 ounces at US$1,913 per ounce. Edikan is progressing the Fetish and Esuajah North cutbacks, with US$22.5 million incurred during the quarter and US$27.6 million capitalised to date. Sissingué benefited from a stronger contribution from Antoinette ore despite lower tonnes milled.
Debt-free balance sheet funds larger shareholder returns
Perseus ended September with US$900 million in cash and bullion, down US$134 million over the quarter, and no debt. It also held US$338 million in listed securities, up from US$233 million at the end of June. The balance sheet gives the company room to fund Nyanzaga while continuing its capital-return programme, although the quarter included US$160 million of capital and exploration spending.
The board has approved an on-market buyback of up to A$350 million, more than doubling the A$150 million programme reported in the A$150m buyback expansion earlier this year. Only 1,019,938 shares had been bought under the enlarged programme by the end of September, for A$6.7 million at an average A$6.53 per share.
Shareholders are also being lined up for a proposed A$100 million special distribution funded by the sale of the Meyas Sand Gold Project, the transaction previously described as a US$260m Meyas Sand sale. The distribution is not yet a declared special dividend: shareholders must first vote on a capital reduction of up to A$70 million at the 30 November AGM, with the remainder expected to be paid as a special dividend after the final split is determined.
Second-half execution carries the forecast
Perseus retained group FY27 guidance of 420,000 to 480,000 ounces at an AISC of US$1,835 to US$2,070 per ounce. The forecast assumes a US$4,000 gold price and applies only to the three operating mines for cost purposes, excluding Nyanzaga. Management expects production to be weighted towards the second half, when Yaouré’s underground operation should contribute more, Edikan is expected to access higher-grade ore and Nyanzaga is planned to begin production.
That leaves a relatively clear set of tests for the next two quarters: whether the operating mines can convert planned grade and maintenance improvements into lower unit costs, and whether Nyanzaga can move from construction progress to commissioning without a schedule or budget surprise. The 30 November shareholder vote is the nearer corporate catalyst; January’s proposed first gold pour is the operational one.
Bottom Line?
Perseus enters the most important phase of FY27 with guidance intact, but the investment case now depends on Nyanzaga’s commissioning and the conversion of second-half plans into production.
Questions in the middle?
- Can Nyanzaga deliver first gold in January 2027 without exceeding its approved construction budget?
- Will higher grades and increased CMA Underground output bring group AISC towards the FY27 guidance range?
- How will shareholders respond to the proposed A$100 million distribution and A$350 million buyback at the AGM?