Key Highlights

• Nyanzaga was 88.4 per cent complete at the end of the quarter.

• Sales were 99,661 ounces at a realised price of US$3,881 per ounce.

• Total cash and bullion was US$900 million at 30 September 2026, comprising US$820 million of cash and 19,049 ounces of bullion valued at US$80 million using a Spot Price of US$4,176 per ounce.

• The FY26 final Dividend was A$0.09 per share, taking the total FY26 dividend to A$0.14 per share, paid on 7 October 2026 at a cost of US$83 million.

What does a gold miner with no debt, US$900 million of cash and bullion and a planned special distribution do while it builds its next mine? Perseus Mining's (ASX:PRU) September 2026 quarterly report, released to the ASX on 27 October 2026, shows a company funding construction of the Nyanzaga project in Tanzania from internal cash, returning Capital to shareholders and holding steady production across three West African mines. The report also shows costs for Nyanzaga running above the original Investment decision budget, which is the item most likely to shape sentiment in coming months.

The central development: Nyanzaga approaches first gold

Nyanzaga was 88.4 per cent complete at the end of the quarter. Perseus had incurred US$407.6 million, or 84 per cent, of the US$483 million construction budget, and total spend to date was US$443.9 million. The forecast total cost is US$553 million to US$563 million, against a final investment decision total of US$523 million.

First production is targeted for January 2027, with commercial production planned for the fourth quarter of FY27. FY27 guidance includes about 55,000 ounces from Nyanzaga, with detailed guidance due in the third quarter of FY27.

How Perseus makes money

Perseus earns Revenue from selling gold from three operating mines: Yaouré in Côte d'Ivoire, Edikan in Ghana and Sissingué in Côte d'Ivoire. In the September quarter, group gold production was 92,551 ounces, made up of 36,648 ounces at Yaouré (26,990 open pit and 9,658 underground), 35,830 at Edikan and 20,073 at Sissingué. Sales were 99,661 ounces at a realised price of US$3,881 per ounce.

Group All-In Sustaining Cost (AISC) was US$2,035 per ounce, with Yaouré at US$2,393, Edikan at US$1,738 and Sissingué at US$1,913. Perseus reported an average cash Margin of US$1,846 per ounce and notional Operating Cash Flow of US$171 million. The company noted that costs were pressured by planned maintenance and that Edikan's outlook depends on accessing higher-grade ore.

Balance sheet and hedging

Total cash and bullion was US$900 million at 30 September 2026, comprising US$820 million of cash and 19,049 ounces of bullion valued at US$80 million using a spot price of US$4,176 per ounce. Debt was nil. Perseus also held listed securities worth US$338 million, including 9.5 per cent of PDI Gold and 10.6 per cent of Aurum Resources. Net cash fell by US$134 million during the quarter, which reflects construction spending and Shareholder payments.

Perseus held committed hedges over 85,000 ounces, about 5 per cent of three-year forecast production, down from 7 per cent. These were 20,000 ounces of fixed forwards at US$2,586 per ounce and 65,000 ounces of call options at a weighted average of US$3,787. It also held uncommitted put options over 180,000 ounces at US$2,628. With a realised price of US$3,881 in the quarter, the hedges are well below spot and leave the company largely exposed to the market price.

Capital returns

The FY26 final dividend was A$0.09 per share, taking the total FY26 dividend to A$0.14 per share, paid on 7 October 2026 at a cost of US$83 million. A share buy-back of up to A$350 million is approved, and 1,019,938 shares had been bought at an average of A$6.53, a total of A$6.7 million.

The sale of Meyas Sand in Sudan is funding a A$100 million special distribution of about 7.54 cents per share. Up to A$70 million (5.28 cents per share) may be paid as a capital reduction, with the balance as a special dividend. The report flags that the Australian Taxation Office may recharacterise part of the capital reduction as an unfrankable dividend. Shareholders vote at the Annual General Meeting on 30 November 2026, with the effective date on 15 December, ex-date on 17 December, Record Date on 18 December and payment on 29 December 2026.

FY27 guidance

Guidance assumes a gold price of US$4,000 per ounce. Group production is guided at 420,000 to 480,000 ounces at an AISC of US$1,835 to US$2,070 per ounce. By mine, Yaouré is guided at 150,000 to 170,000 ounces, Edikan at 150,000 to 170,000 and Sissingué at 65,000 to 85,000, plus the Nyanzaga contribution of about 55,000 ounces. Nyanzaga is expected to contribute only later in the year.

Sector and competitive position

Perseus is a mid-tier, multi-mine West African producer, which spreads operational risk across mines but concentrates jurisdictional exposure to Côte d'Ivoire, Ghana and, soon, Tanzania. It has been transitioning Yaouré underground, an operational shift that tends to raise unit costs relative to open pit.

Risks and what to monitor

Key risks include the gold price, government approvals and fiscal terms in Africa, cost overruns at Nyanzaga, operating disruptions, financing and cost estimate accuracy, as cited in the report's forward-looking statement. The company's separate tax risk on the capital reduction is specific and quantifiable.

Items to monitor are Nyanzaga first gold in January 2027, detailed Nyanzaga guidance, the 30 November 2026 vote, delivery of the second half of the year's production, the pace of buy-back activity, and the report's scheduled investor events, including the Macquarie WA Forum on 5 November and UBS Australasia Conference on 9 November 2026. The next Quarterly Report will show whether AISC moves into the guided range.