Perseus Mining lifts dividend 87% on record cash flow

Perseus Mining (TSE:PRU) declared a final dividend of A$0.09 per share for the financial year ended June 30, 2026, bringing the full-year payout to A$0.14 per share. Chief Financial Officer Lee-Anne de Bruin stated that the 87% increase reflects a 24% rise in operating cash flow to US$666 million, driven by higher realized gold prices.

The company reported revenue of US$1.5 billion, up 19% year over year, and EBITDA of US$860 million. Production reached 405,000 ounces at an all-in site cost of A$1,750 per ounce. De Bruin noted that stronger gold prices compensated for reduced output at the Yaouré and Edikan operations, where the firm shifted to different ore deposits during the year. These new sources contained more waste and lower grades, which raised the cost to produce each ounce. Regulatory changes also impacted margins, as Côte d'Ivoire raised its royalty rate by 2 percentage points for gold prices above US$2,000 per ounce, and Ghana introduced a scaled royalty regime in March 2026.

Profit before tax rose 27% to US$716 million, while profit after tax increased 14%. De Bruin attributed the smaller after-tax growth to increased taxes in host countries and the end of Yaouré's five-year tax holiday in December 2025. Basic earnings per share increased 17% to US$0.3173, and earnings per ounce rose 41% to US$1,204. The company ended the year debt-free with net cash and bullion exceeding US$1 billion and total liquidity of US$1.4 billion.

Beyond the dividend, Perseus approved an increase in its buyback program to A$350 million after completing A$126 million of repurchases during the year. The company is also considering an additional A$100 million distribution from the sale of its Meyas Sand Gold Project in Sudan. De Bruin said this distribution could take the form of a special dividend, a return of capital, or a combination of both, pending consultations with the Australian Taxation Office.

Growth investment remains central to the strategy, with the Nyanzaga Gold Project 67% complete and on track for first gold in January 2027. More than 3,800 people are working at the site on the processing facility, tailings dam, and power systems. The company has moved 1.2 million bank cubic meters of material in pre-stripping activities at the Kilimani and Tusker deposits. Perseus expects to move more than 7 million bank cubic meters before first gold, an increase from the original plan of 4.6 million cubic meters. This acceleration will result in an additional US$20 million to US$30 million in pre-production mining expenditure, though management stated the project remains within its original budget.

Group proved and probable reserves rose 40% to 7 million ounces, while measured and indicated resources increased 37% to 10.6 million ounces. At Edikan, planned cutbacks are expected to extend mine life to 2031 from approximately fiscal 2028. For fiscal 2027, Perseus maintains production guidance of 420,000 to 480,000 ounces at all-in site costs of US$1,835 to US$2,070 per ounce. The company plans to allocate approximately US$530 million to growth capital and US$70 million to US$80 million to exploration, roughly double the prior year's level.