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Highlights

  • Perseus Mining commits US$523 million to develop Nyanzaga Gold Project in Tanzania.

  • First gold production expected in Q1 2027, with peak output of 246,000 ounces in FY 2028.

  • Shares down 2.1%, but up 37% year-on-year.

Perseus Mining Ltd (ASX:PRU) has announced it is proceeding with the development of its Nyanzaga Gold Project (NGP) in Tanzania, following a positive update on the NGP Feasibility Study (FS). The S&P/ASX 200 gold stock revealed that it has made the Final Investment Decision (FID) to move forward with the project, with the goal of producing the first gold in Q1 2027.

Despite the significant milestone, Perseus shares fell 2.1% to AU$3.25 in morning trade. For context, the broader S&P/ASX 200 index rose 0.9% at the same time. Investors may have reacted to the large capital commitment required for the project, with Perseus planning to invest around US$523 million (AU$818.9 million) to develop and prepare the mine.

The Nyanzaga Gold Project will be financed entirely through interest-free, intercompany loans from Perseus’s existing cash and bullion balance of US$801 million. To date, the company has already spent US$27.5 million on building its project team and commencing early works.

Perseus plans to develop Nyanzaga as a large-scale, wholly open-pit mining operation for its first phase of production, opting for this approach over a smaller-scale, combined open-pit and underground option. The initial phase is expected to produce a total of 2.01 million ounces of gold over an 11-year mine life, with annual production averaging more than 200,000 ounces between FY 2028 and FY 2035. Peak production is forecast at 246,000 ounces in FY 2028.

On the cost front, the estimated All-In Site Cost (AISC) for the mine is US$1,211 per ounce over its life, a figure that will be closely monitored as the project progresses.

In his comments on the decision, Perseus CEO Jeff Quartermaine expressed excitement about the project, stating, “Perseus is very excited by its decision to proceed with the development of the Nyanzaga Gold Project and is looking forward to working alongside the Government of Tanzania to deliver a world-class mining operation.” He added that the Nyanzaga Gold Project, acquired through Perseus’s successful takeover of OreCorp Limited in May 2024, would be the first major gold mine development in Tanzania in 17 years.