Perseus Mining (TSE:PRU) reported higher gold output and improved margins in its March 2026 quarter update, supported by stronger performance across all three operating mines and a higher realized gold price. Managing Director and CEO Craig Jones said the company produced 107,000 ounces of gold during the quarter, up 18,000 ounces from the December quarter.
Jones said the weighted average all-in site cost (AISC) was $1,748 per ounce, down from $1,800 per ounce in the prior quarter, “mainly due to the higher production.” Perseus achieved a realized gold sale price of $4,143 per ounce, which he said was $706 per ounce higher than the previous quarter, resulting in an average cash margin of $2,394 per ounce and “notional operating cash flow of $252 million from all of the operations.”
Cash position, liquidity, dividend and buyback
De Bruin added that the $1.2 billion liquidity figure excluded “$245 million of liquid investments in relation to Predictive Discovery and Aurum,” as well as “the $260 million that we received in April in relation to the Meyas Sand Gold project.”
On capital returns, de Bruin said the board approved a $0.05 per share interim dividend totaling $46 million, which she said was “up 100% on the prior year period.” Perseus also continued its on-market buyback, purchasing $26 million of shares during the quarter at an average price of $5.39.
She said the company continued reducing its hedge exposure, with the committed hedge position lowered from 11% to 9% of three-year forecast production.
Operations: Yaouré, Edikan and Sissingué
At Yaouré, Jones reported gold production of 36,000 ounces from the open pit and CMA Underground at an all-in site cost of $2,049 per ounce. He highlighted a January milestone at CMA Underground, with first ore from the Blika portal. Jones said 1,600 ounces of gold were produced from CMA Underground during the quarter, and Yaouré generated $68 million of notional cash flow.
Jones said stoping operations at the underground mine are expected to commence “early in this quarter that we’re in now.” Later in the Q&A, he added that CMA Underground ounces would be “an important part of that production for the final quarter,” while reiterating that Perseus remained within its published FY2026 guidance range.
At Edikan, the company produced 45,000 ounces at an all-in site cost of $1,539 per ounce. Jones noted Ghana implemented a new sliding-scale royalty regime in early March, in which royalties rise with the gold price and are capped at 12% when gold exceeds $4,500 per ounce. He said some of the increased royalty burden has been offset by reductions in other levies, including a reduction in the Growth and Sustainability Levy from 3% to 1% of gross revenue at the end of March and removal of a 6% levy on the supply of goods and services.
Jones said Edikan generated net cash flow of AUD 124 million. He also noted progress at the Fetish and Esuajah North pit cutbacks, saying approvals were received from the government and mining commenced at Fetish early in the fourth quarter.
At Sissingué, Jones said production increased as the company ramped up at the Bagoe Antoinette deposit, supported by higher grades and higher throughput. The complex produced 25,000 ounces at a weighted average all-in site cost of $1,708 per ounce. Jones said production costs decreased by about 20%, attributing the reduction to higher proportions of oxide material mined at Bagoe. Net cash flow from the complex was AUD 60 million, up from AUD 25 million in the prior quarter.
In response to an analyst question on the gap between production and sales at Sissingué, Jones said it was “just a shipping timing difference.” De Bruin also pointed to inventory movements during the quarter, including “inventory buildups at Yaouré with increased mining and building up of stockpiles” and “a small impact as a result of a shipment timing at Sissingué.”
Fuel supply and diesel cost exposure
Jones addressed global fuel supply uncertainty, saying the company is monitoring fuel supply, consumption and inventory to mitigate the risk of disruptions. He said Perseus has fuel supply contracts with “reputable fuel suppliers” and that “at this stage, we don’t have any foreseeable fuel restrictions.” Jones added diesel represents about 10% of group all-in site costs, and sustained higher diesel costs could have a limited impact on the cost base.
In the Q&A, de Bruin said the 10% diesel estimate reflected an average for the financial year and “spot prices probably in about February.” She said price impacts varied by jurisdiction, noting Côte d’Ivoire is “extremely regulated” while Ghana has seen increases “probably 50%” similar to Australia’s market. De Bruin also said Perseus generally holds “between one to two weeks of fuel on site” and described fuel sourcing dynamics in West Africa, including Côte d’Ivoire’s refineries and a long-standing relationship in Ghana with ZEN Petroleum. She emphasized the current focus is more on pricing than supply disruption.
Portfolio changes and growth projects
Jones said Perseus made “important changes” to its portfolio during the quarter, led by an updated ore reserve at the Nyanzaga project. He said drilling increased the Nyanzaga ore reserve by 73% to 4 million ounces since the feasibility study completed in April 2025, underpinned by 83,000 meters of drilling since May 2024. Jones said the updated reserve extended Nyanzaga’s mine life to 16 years from 11 years, including 14 years with production above 200,000 ounces per year. He said the project “remains on track for first gold in January 2027.”
In his growth project update, Jones said Nyanzaga was “on budget and schedule,” 48% complete by quarter-end, with total cost incurred to date of $220 million. He also cited safety performance at the project, reporting more than 5.4 million hours worked with no lost time injuries, and a workforce exceeding 3,162 personnel. Jones said major processing plant procurement was complete, key equipment fabrication had been completed and was in transit, structural steel fabrication was 78% complete, and TSF construction had commenced “and is ahead of schedule.”
On the CMA Underground project at Yaouré, Jones said nearly 1,600 meters of lateral development had been achieved by the end of the quarter, and high-voltage power supply to the underground portals was completed. He said Perseus had spent around $63 million on the project and that stoping ore expected this quarter would be “an important feed for the Yaouré mill.”
Perseus also divested its 70% interest in the Meyas Sand Gold Project in Sudan. Jones said the decision followed a lengthy review and that divestment would allow resources to be reallocated to internal development opportunities. He said the transaction was completed “yesterday” and that all funds had been received. When asked about potential use of proceeds, Jones said the company would consider it in the context of year-end dividend decisions, but “no decisions have been made at this point in time.”
Additionally, Jones said Perseus invested AUD 23.7 million in explorer Aurum Resources, participating in a strategic placement and taking a 9.9% stake. He described Aurum as an ASX-listed explorer with the Boundiali Gold Project in Côte d’Ivoire, a “3,000,000 oz pre-development and pre-study project” located along strike south of Perseus’ Sissingué mine and processing hub. In the Q&A, Jones called the Aurum stake “a strategic investment,” noting the proximity of Aurum’s northern tenements to the company’s active mining area at Bagoe and saying Perseus wanted to support the exploration effort.
Looking ahead, Jones said Perseus remains on track to meet its FY2026 guidance of 400,000 to 440,000 ounces of gold production and all-in site costs of $1,600 to $1,760 per ounce.
Jones also discussed sustainability and safety initiatives, including a review of vehicle and driving standards, defensive driver training, and rollout of vehicle and driver monitoring systems, calling vehicles the company’s “highest safety risk.” He said Perseus’ total recordable injury rate (TRIR) was 0.75. He added that total economic contribution for the quarter was AUD 282 million, including AUD 179 million in local procurement, AUD 91 million in taxes and royalties, and AUD 1.3 million in direct community contributions, and said about 95% of the workforce comes from host countries.
About Perseus Mining (TSE:PRU)
Perseus Mining Ltd is engaged in the exploration, evaluation, development, and mining of gold properties in West Africa. The company projects are Sissingue Gold Mine, Edikan Gold Mine in Ghana, and Yaoure Gold Project.
