Perseus’s increases share buy-back programme under capital allocation framework to return capital to shareholders

Perseus Mining’s stock price surged on Monday after it announced an expansion of its on-market share buyback programme which is a reflection of significantly improved investor sentiment and management’s confidence in growth prospects.

Perseus Mining Limited (ASX: PRU)

has surged 8.5% at the time of writing on Monday after it announced an increase in its on-market share buyback programme to $150 million. The current market capitalisation is $7.09 billion and the announcement follows another period of strong operational performance across its gold mining portfolio while several major growth projects continue to advance.
The company since August 2024 has repurchased more than 45 million shares valued at $183.5 million. This indicates management's view that the market continues to undervalue the company's high-margin production base and future growth opportunities.

Strong Operational Performance

The company reported another strong quarter for the three months ended March 2026 and produced 107,144 ounces of gold from its operations. Production increased 21% from 88,888 ounces in the previous quarter which highlights the quality and reliability of its operating assets. A sharp rise in the average realised gold price to US$4,143 per ounce from US$3,437 per ounce further boosted profitability. Average cash margins reached an impressive US$2,395 per ounce which generated notional operating cash flow of US$252 million during the quarter.

Perseus is in a very strong financial position as cash and bullion increased to US$817 million while liquid listed securities contributed an additional US$254 million to the balance sheet. This substantial liquidity gives the company the ability to fund development projects pursue acquisitions and continue capital returns to shareholders. Group production costs remained competitive at US$1,238 per ounce. 

Edikan was one of the strongest performers during the quarter as gold production rose 18% quarter-on-quarter to 45,123 ounces and the operation generated notional cash flow of US$124 million. Better throughput higher grades and stable recovery rates supported this performance. Sissingue complex gold production increased 38% to 25,455 ounces while Yaoure also maintained strong performance and generated US$68 million of notional cash flow during the quarter.

Growth Pipeline

Progress at the Nyanzaga Gold Project in Tanzania is one of the most important developments for investors. Management confirmed that the project is still on budget and on schedule with first gold expected in January 2027.  Project completion had reached 48% by the end of March 2026 while US$220 million had already been invested in development activities. All major process plant procurement has been completed and construction targets continue to be achieved. 

Another important milestone was reached at the CMA Underground project beneath the Yaoure operation. The first ore was mined from the Blika Portal during January 2026. Underground development moved ahead rapidly throughout the quarter and commercial production is expected to begin during FY27. This project is expected to support future production levels and extend the mine life of one of Perseus's key assets.

The company's future growth profile received further support from a number of developments. Nyanzaga ore reserves increased 73% to 4.0 million ounces. Perseus also acquired a 9.9% strategic interest in Aurum Resources. The company completed the sale of its 70% interest in the Meyas Sand Gold Project for US$260 million in cash. 

Outlook

The company maintained its FY26 production guidance of 400,000 to 440,000 ounces of gold with all-in site costs expected to range between US$1,600 and US$1,760 per ounce. Major development projects continue to progress according to plan while exploration opportunities across Africa continue to expand and hence Perseus is well positioned for further growth.

(Source: Company Announcements)