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Perseus Mining Proceeds with Development of Nyanzaga Gold Project
GlobeNewswire·2025-04-27 22:40

Core Viewpoint - Perseus Mining Limited has made a Final Investment Decision (FID) to develop the Nyanzaga Gold Project in Tanzania, following an updated feasibility study [1][2]. Investment Overview - The company plans to invest approximately US523millionforthedevelopmentandoperationpreparationofthemine,withfirstgoldproductionexpectedinQ12027[2].−Thefundingwillbesourcedfrominterest−freeintercompanyloans,utilizingPerseus′sexistingcashandbullionbalanceofUS523 million for the development and operation preparation of the mine, with first gold production expected in Q1 2027 [2]. - The funding will be sourced from interest-free intercompany loans, utilizing Perseus's existing cash and bullion balance of US801 million as of March 31, 2025 [2]. Project Development - To date, Perseus has invested around US27.5millioninbuildingprojectteamcapacityandinitiatingearlyworks,includingsiteestablishmentandbulkearthworks[3].−Theupdatedfeasibilitystudyindicatesashifttoalarge−scale,whollyopen−pitminingoperationforthefirstphase,asopposedtoasmallercombinedopen−pitandundergroundoptionpreviouslyconsidered[4].ProductionandFinancialMetrics−Totalgoldproductionoveran11−yearPhase1minelifeisestimatedat2.01millionounces,withanaverageannualproductionofover200,000ouncesfromFY28toFY35,peakingat246,000ouncesinFY28[6].−TheestimatedaverageAll−InSiteCost(AISC)isUS27.5 million in building project team capacity and initiating early works, including site establishment and bulk earthworks [3]. - The updated feasibility study indicates a shift to a large-scale, wholly open-pit mining operation for the first phase, as opposed to a smaller combined open-pit and underground option previously considered [4]. Production and Financial Metrics - Total gold production over an 11-year Phase 1 mine life is estimated at 2.01 million ounces, with an average annual production of over 200,000 ounces from FY28 to FY35, peaking at 246,000 ounces in FY28 [6]. - The estimated average All-In Site Cost (AISC) is US1,211 per ounce, with total capital costs for the plant and site infrastructure estimated at US472million,includingcontingencies[6].−TheprojectisprojectedtogenerateanundiscountedfreecashflowofUS472 million, including contingencies [6]. - The project is projected to generate an undiscounted free cash flow of US1,133 million pre-tax and US706millionpost−tax,withaNetPresentValue(NPV10706 million post-tax, with a Net Present Value (NPV10%) of US404 million pre-tax and US$202 million post-tax [6]. Government Engagement - The FID follows constructive engagement with the Government of Tanzania to clarify terms of an existing Framework Agreement for the project's development and operation [7]. Future Exploration - A second phase of resource definition drilling is currently underway, aimed at converting Inferred Mineral Resources into Indicated Mineral Resources, potentially extending the mine's operational life beyond the projected 11 years [8].