Perseus Mining's March Quarter Report: A Gold Mine of Opportunities

Perseus Mining's March 2025 quarterly report is a testament to the company's resilience and strategic foresight. The report, set to be released around 8:30 am AEST on Wednesday, April 30, 2025, promises to be a gold mine of opportunities for investors and stakeholders alike. The company's strong performance in the December 2024 quarter, coupled with its strategic initiatives, positions it well for future growth.



The December 2024 quarter saw Perseus produce 132,419 ounces of gold, a 9% increase from the prior quarter. This production was achieved at an all-in site cost (AISC) of $1,127 per ounce, which was $74 per ounce lower than the previous quarter. The company generated notional cash flow of $173 million, an increase of $46 million from the previous quarter. This strong performance was attributed to the quality of the company's operating mines and assets, as well as the elevated gold price and focus on operating efficiency.

The trends observed in production, costs, and cash flow indicate that Perseus Mining is on a trajectory of sustained growth and financial strength. The company's ability to increase production while reducing costs and generating significant cash flow positions it well to fund growth initiatives and continue shareholder returns. The strong performance in the December 2024 quarter, coupled with the company's strategic investments in projects like the CMA Underground mine at Yaouré and the Nyanzaga project in Tanzania, suggests that Perseus Mining is well-positioned to maintain this momentum in the coming quarters.

Perseus Mining's future growth is expected to be driven by several strategic initiatives and projects, as highlighted in the webinar. These initiatives align with the company's long-term objectives of expanding production, enhancing operational efficiency, and exploring new opportunities for growth.

1. Development of the CMA Underground Mine at Yaouré:
- Perseus has made a final investment decision to develop an underground mine at the CMA deposit at its Yaouré operation. This project is expected to access material that is currently not economically viable to mine using open-pit methods. The development is a significant step in maximizing the value of the Yaouré operation, which is one of the company's cornerstone mines. Australian contractor Byrnecut has been appointed to undertake the project, with mobilization to the site expected in April 2025. First production from the CMA underground is targeted for Q1 FY2027. This initiative aligns with Perseus's objective of extending the mine life and increasing production from its existing assets.

2. Progress on the Nyanzaga Project in Tanzania:
- The Nyanzaga project in Tanzania is progressing towards construction. This project is part of Perseus's strategy to diversify its operations and explore new regions for gold mining. The acquisition of OreCorp Limited, which includes the Nyanzaga Gold Project, is an example of inorganic growth that adds to the company's long-term sustainability and production profile.

3. Exploration Activities:
- Exploration across Perseus's portfolio is focused on extending mine lives. Encouraging results have been reported at Yaouré, Sissingué, Edikan, and the Meyas Sand project in Sudan. These exploration activities are crucial for identifying new mineral resources and reserves, which will support future production and ensure the long-term viability of the company's operations. For instance, the company's total Measured and Indicated (M&I) Mineral Resources at 30 June 2024 are estimated to be 115.9 Mt grading 1.31 g/t gold, containing 4.9 Moz of gold, which is a testament to the success of these exploration efforts.

4. Operational Efficiency and Cost Management:
- Perseus has demonstrated a strong focus on operational efficiency and cost management. For example, in the December 2024 quarter, total all-in site costs decreased by $74 per ounce or 6% to $1,127 per ounce. This led to an expansion of the cash margin by 24% quarter-on-quarter to $1,303 per ounce, based on an average realized gold price of $2,430 per ounce. This cost management strategy is essential for maintaining profitability and funding future growth initiatives.

5. Sustainability and ESG Initiatives:
- Perseus is committed to generating benefits for all stakeholders, including employees, local communities, and host governments. The company's sustainability reports and ESG initiatives reflect this commitment. For example, the company's sustainability report for 2024 highlights its efforts in environmental management, social responsibility, and governance. These initiatives are aligned with the company's long-term objective of being a responsible and sustainable mining company.

In summary, Perseus Mining's strategic initiatives and projects, such as the development of the CMA Underground Mine, progress on the Nyanzaga Project, exploration activities, operational efficiency, and sustainability initiatives, are expected to drive future growth. These initiatives align with the company's long-term objectives of expanding production, enhancing operational efficiency, and exploring new opportunities for growth while maintaining a strong commitment to sustainability and stakeholder engagement.