Perseus Mining (ASX:PRU) outlined a stronger operating and financial performance for the six months to December 2026, supported by higher realized gold prices and continued progress on growth projects, while also flagging higher unit costs tied largely to royalties and mine sequencing. Management also announced a higher interim dividend and a sizable increase in ore reserves at its Nyanzaga project in Tanzania.
Half-year production, costs, and realized pricing
Chief Financial Officer Lee-Anne de Bruin said the company delivered a “very strong, solid operational performance” during the period as mines transitioned into new mining areas and capital growth projects advanced. Perseus produced 188,841 ounces in the six months, with an all-in site cost (AISC) of $1,649 per ounce.
Financial results: revenue, EBITDA, profit, and cash flow
Revenue for the six months rose 5% versus the 2024 comparative period to $608 million. De Bruin attributed the increase largely to the higher realized gold price, partially offset by a reduction in ounces produced during the half.
Cost of sales increased compared with the prior period, primarily due to higher royalties linked to higher gold prices. De Bruin also highlighted a 2% increase in royalty rates in Côte d’Ivoire totaling $20 million included in the period, with $9 million of that relating to the six months ended June 2025.
Operationally, she noted that Yaouré transitioned into the Yaouré open pit and Edikan moved into the Nkran open pit, both of which carry higher waste movement and lower overall grades, raising the cost to produce each ounce compared with the prior year’s half.
With slightly higher revenue offset by increased cost of sales, Perseus posted EBITDA of $316 million for the half. Profit after tax was $186 million, which de Bruin said was 8% lower than the comparative period. She cited several key drivers:
- Depreciation and amortization decreased 46% year over year, mainly due to lower ore tonnes mined and lower mine property and deferred stripping amortization, following completion of several pits by June 2025.
- A foreign exchange loss of about $27 million due to a weaker U.S. dollar against the euro on certain balance sheet transactions, including bank balances.
Net cash from operating activities for the half was $194 million. Earnings per share were $0.1210 per share.
Balance sheet, liquidity, and capital returns
De Bruin said Perseus ended the half with $755 million in cash and bullion after investing $175 million in growth projects and exploration. She also detailed a refinancing completed in December 2025, when the company upsized its existing $300 million facility to $400 million, with a $100 million accordion option. The facility has a three-year term with options to extend for a further two years. Combined with cash and bullion, de Bruin said this gives Perseus “just under $1.2 billion in liquidity.”
In addition to cash and funding facilities, de Bruin said Perseus has listed security investments of about $230 million, including a 17.8% investment in Predictive.
On shareholder returns, Managing Director and CEO Craig Jones said the company would increase its interim dividend, while de Bruin confirmed the board approved an interim dividend of $0.055 per share and said it was “up 100% on the December 2025 interim dividend.” She also said the board declared an interim dividend of AUD 0.05 per share, citing the balance sheet position and forecast cash flows from existing operations and the development of Nyanzaga.
Perseus also renewed its share buyback program at AUD 100 million in August, and as of the call date had repurchased AUD 9 million worth of shares under the renewed program.
Guidance update and Nyanzaga reserve increase
Looking ahead, Jones said FY 2026 production guidance remains unchanged at 400,000 to 440,000 ounces, with production weighted to the second half. However, the company increased its group AISC guidance range to $1,600 to $1,760 per ounce from $1,460 to $1,620 per ounce. Jones said the update reflects higher gold price assumptions and resulting royalty costs, as well as the 2% royalty increase in Côte d’Ivoire for Yaouré and Sissingué.
Jones also said higher grade ore sources are expected at Edikan and Sissingué, while Yaouré is expected to be in the lower half of its production guidance range.
A major focus of the call was Nyanzaga. Perseus released an updated ore reserve for the Nyanzaga Gold Project in Tanzania to 4.0 million ounces, a 73% increase from the 2.3 million ounce ore reserve reported in April 2025 as part of the updated feasibility study. Jones said the update extends the mine life to 16 years, including 14 years of production at more than 200,000 ounces per annum, positioning Nyanzaga as a “long-life, low-cost mine and a cornerstone asset.”
Jones said the ore reserve increase is based on a further cutback to a large-scale open pit mining operation, consistent with the feasibility study. He added that total gold production over the 16-year period is estimated at 3.5 million ounces, based on a JORC 2012 probable ore reserve of 90.9 million tonnes at 1.38 grams per tonne for 4.0 million ounces of gold. Gold production is expected to exceed 200,000 ounces per annum from FY 2028 to FY 2041. Using Perseus’ long-term gold price assumption of $3,000 per ounce, Jones said Nyanzaga’s updated life-of-mine AISC is $1,621 per ounce.
Jones reported construction and early works progress, including steel erection commencing in the milling facility and pre-stripping at the Tusker Deposit. He said the project remains on track for first gold pour in January 2027.
Royalties discussions, community contributions, and safety
During the Q&A, Jones addressed discussions with the Côte d’Ivoire government regarding fiscal arrangements amid higher gold prices. He said the company does not expect “any radical change” from current settings and described the government as “very open and very pragmatic” about the impact of wholesale royalty changes. Jones said a new mining code is expected sometime during the year and that the government wants any changes ratified into that new code. He added that the industry has been highly engaged and working collaboratively and in a unified manner with the government.
Jones and de Bruin also emphasized economic contributions to host countries during the half. De Bruin said Perseus paid $144 million to host governments in corporate income taxes, withholding taxes, and royalties, and made broader economic contributions of $340 million including local procurement and community contributions. Jones later said first-half economic contribution reached $484 million, including $308 million in local procurement, $144 million in taxes and royalties, and $3.37 million in community contributions. He also stated that 95% of the workforce comes from host countries.
On safety, Jones said indicators reflected a strong safety performance, but emphasized that “true safety performance is ultimately reflected in human outcomes,” noting recent fatalities at Sissingué.
In closing remarks, Jones said management was pleased with first-half performance and said it “bodes well” for the second half, pointing to the higher dividend and the Nyanzaga reserve and resource upgrade as key highlights.
About Perseus Mining (ASX:PRU)
Perseus Mining Limited, together with its subsidiaries, explores, evaluates, develops, and mines for gold properties in West Africa. The company holds interests in the Edikan gold mine project located in Ghana; and the Sissingué and Yaouré gold mine projects located in Republic of Côte d'Ivoire. It also holds 70% interest in the Meyas Sand gold project in Sudan. Perseus Mining Limited was incorporated in 2003 and is based in Subiaco, Australia.
