PRU increases Nyanzaga Project Ore Reserves to 4.0Moz

The February 2026 news cycle for Perseus Mining Limited (PRU) centers on two major developments: a significant Ore Reserve increase at its Tanzanian Nyanzaga Gold Project and its H1 FY26 financial results.

Perseus reported a 73% increase in Ore Reserves at the Nyanzaga Gold Project, now totaling 4.0 Moz (90.9 Mt at 1.38 g/t gold). This update follows 82,700 meters of drilling since the 2024 acquisition. The project’s mine life has been extended to 16 years, with a production target of 3.5 Moz. Economic modeling at a US$3,000/oz gold price assumption yields a post-tax NPV10 of US$864 million and an IRR of 28.8%. First gold production remains scheduled for January 2027.

Simultaneously, the H1 FY26 financial results (period ending Dec 31, 2025) show a profit after tax of US$185.5 million, an 8% decrease from the US$201.1 million reported in the prior corresponding period. Revenue rose to US$608.5 million (up from US$581.8 million), driven by a high realized gold price of US$3,241/oz. However, All-In Site Costs (AISC) jumped significantly to US$1,649/oz. Despite lower profits, the company increased its interim dividend by 100% to 5.0 AUD cents per share.

The 4.0 Moz reserve at Nyanzaga is a material positive and a significant de-risking event. It validates the acquisition of OreCorp and confirms Perseus's ability to transform foreign estimates into high-confidence JORC-compliant reserves. The extension of the mine life to 16 years provides long-term cash flow visibility that compensates for the aging profiles of its West African assets.

However, the H1 FY26 financial results reflect a worrying trend in margin compression. Despite a record realized gold price of US$3,241/oz, profits declined. The primary culprit is the 42% increase in AISC compared to FY25 (US$1,649/oz vs. US$1,162/oz in H1 FY25). This inflation is attributed to operational transitions: Yaouré moving to the lower-grade open pit while developing CMA Underground, and Edikan transitioning to Nkosuo. While the 100% dividend increase signals management's confidence, a more critical view suggests it may be a move to support the stock price while the company navigates this high-capex, high-cost transition period.

The failed acquisition of Predictive Discovery in late 2025 also indicates that Perseus is struggling to find inorganic growth at reasonable prices, forcing a heavier reliance on the capital-intensive development of Nyanzaga and CMA Underground.

Perseus Mining is an African-focused gold producer with three operating mines: Yaouré (Côte d’Ivoire), Edikan (Ghana), and Sissingué (Côte d’Ivoire). - Flagship Project: The Nyanzaga Gold Project in Tanzania is the new cornerstone of the company’s growth strategy. Following the latest update, it is a 4.0 Moz reserve project with a 16-year life, targeting first production in January 2027. It is expected to be a high-margin producer once steady-state operations are reached, despite a projected AISC of US$1,621/oz (modeled at high gold prices).