Perseus released a five-year gold production outlook. What motivated this move and could you walk us through the numbers?

Perseus has been trading at a significant discount for some time despite consistently delivering outstanding performance and results, so we examined the reasons behind it. One factor that was identified is the so-called ‘African discount,’ which, while not necessarily justified, persists because of perceptions beyond our control. Another reason we identified is a prevailing market misconception that Perseus has already reached peak output and is now in decline.

Our goal with providing the outlook for the next five years (FY26 to FY30) was to correct that misconception. Based on our existing reserves alone (assuming no further drilling success or acquisitions), we expect to recover 2.6–2.7 million oz of gold, with production averaging about 525,000 oz/y. This forecast includes our Yaouré, Edikan, and Sissingué mines, as well as the Nyanzaga gold project in Tanzania, which is expected to enter production in January 2027 if not earlier.

These figures represent the bare minimum that we will produce, providing investors with certainty over the next half-decade. But if anyone thought Perseus would simply sit on our war chest of nearly US$1 billion in cash and undrawn debt capacity, then they would be ignoring history: in the past five to six years, we have grown significantly through both organic and inorganic means, consistently beating our own production forecasts. For instance, at Sissingué, our feasibility study (FS) projected production of 358,000 oz over five years, yet we delivered 50% more; eight years into production, the mine life has been extended to FY31. The same applies to Yaouré: just 4.5 years into production, we’ve already produced the ounces forecast in the FS, with another 11 years ahead of us.

Could you elaborate on the upside on the share price?

While many of our Australian-listed peers have price-to-earnings (P/E) ratios of around 23–24, Perseus trades at approximately 7–7.5, leaving considerable room for our share price to grow in line with peers. 

Perseus has managed to grow into a leading mid-tier producer from our operations in West Africa and we have achieved this in just a little over a decade without any major problems. We have spread the risks across multiple assets and jurisdictions to help dilute any volatility in production and earnings. Our expansion into Tanzania has been strategic, creating a balanced West–East African portfolio. Nyanzaga gold mine will be the first large-scale mine built in Tanzania in 17 years, and this initiative has been warmly welcomed by the government, signaling renewed investor confidence in the country. The mine will add between 220-250,000 oz to our annual production; we’re now embarked on a second phase of confirmatory drilling and are planning to publish an Ore Reserve update in early 2026. Drilling at depth has also returned very exciting results, and all indications are that Nyanzaga will be an even better project than we initially thought it to be when we acquired it.

At a time of record gold prices, how are investors’ expectations evolving? 

Investors certainly expect capital returns, but at the same time they also seek judicious growth. It’s about striking the right balance by investing a certain amount of your discretionary capital into growth projects while also allocating capital for returns. The question then arises of how best to efficiently return capital to shareholders. Since Australia does not have double-tax treaties with any African countries, there are no franking credits available on dividends, making share buybacks more attractive to many investors. 

Perseus has been paying dividends now for several years and we launched our first share buyback program last year; we expect to continue with buybacks this year, with a decision to be announced in August. As for M&A, acquisition costs remain high in the current elevated gold price environment, which may cause us to look towards greenfield exploration for growth more than we have in recent years.

How does Perseus adapt its community engagement strategy to unique local conditions?

Each community has its own realities—levels of organisation, expectations, and histories—that shape engagement. Key to our engagement is to understand what is actually driving communities’ thinking, what their needs are, and how we can work together so that everybody benefits. There’s no one-size-fits-all approach, especially in a continent as diverse as Africa.