Perseus Mining Announces 5 Year Gold Production Outlook

Perseus Mining Limited (ASX/TSX: PRU) projects gold production of 2.6 to 2.7 million ounces over the next five years (FY26-FY30), averaging 515,000 to 535,000 ounces annually from its mines in Ghana, Côte d’Ivoire, and Tanzania. The company forecasts an average All-In Site Cost (AISC) of US$1,400 to US$1,500 per ounce, with a cash operating margin consistently exceeding US$500 per ounce at a gold price of US$2,400/oz. This outlook incorporates the development of the CMA underground mine at Yaouré and the Nyanzaga Gold Project, with a total development capital expenditure of approximately US$878 million over the period.

Analysis

Perseus Mining Limited has provided a robust five-year gold production outlook (FY26-FY30), targeting 2.6 to 2.7 million ounces, averaging 515,000 to 535,000 ounces annually. This production is supported by a weighted average All-In Site Cost (AISC) forecast of US$1,400 to US$1,500 per ounce, expected to remain stable with no more than a ±10% year-on-year variance. The outlook incorporates significant developments, including the CMA underground mining operation at Yaouré and the new Nyanzaga Gold Project in Tanzania, necessitating a total development capital expenditure of approximately US$878 million, which is excluded from the AISC. Critically, the company projects a consistent cash operating margin exceeding US$500 per ounce at all mines, assuming a long-term gold price of US$2,400 per ounce. This forecast is underpinned by high geological confidence, with 93% of planned gold ounces derived from existing Ore Reserves. Despite a temporary production shortfall anticipated in FY26 and FY27 due to the deferral of the Meyas Sand project and the pivot to Nyanzaga, Perseus expects to achieve its strategic goal of producing 500,000 to 600,000 ounces annually thereafter. The company's financial position is strong, with over US$1.1 billion in cash and undrawn debt, fully funding the outlined plan and allowing for potential future growth and shareholder returns. The Nyanzaga project is notable, projected to be the lowest cost operation with an AISC of US$1,230-US$1,330/oz and contributing 28% of portfolio production. Yaouré's CMA underground development capital has increased by 36% to US$170M due to schedule adjustments and updated capitalisation methodology.

Key Decisions for Investors

• Investors should view the clear five-year production and cost guidance positively, supported by a high proportion of Ore Reserves, though the successful execution of the US$878M development capital plan for Yaouré CMA underground and Nyanzaga is crucial.
• The forecasted cash operating margin exceeding US$500/oz at a US$2,400/oz gold price is compelling, but investors must monitor gold price volatility as it directly impacts profitability.
• Consider the company's strong liquidity position (over US$1.1B) which supports both the extensive development pipeline and the stated commitment to shareholder returns through dividends and buybacks.
• Evaluate the phased production ramp-up, noting the temporary dip in FY26-FY27 before Nyanzaga significantly contributes to achieving the 500-600koz annual target from FY28 onwards.