Perseus Mining moves forward to develop Nyanzaga Gold Project in Tanzania with $523m investment

Perseus Mining Limited has officially greenlit the development of the Nyanzaga Gold Project (NGP) in Tanzania, reinforcing its strategic push to expand its gold production footprint across Africa. The Perth-based miner announced the Final Investment Decision (FID) after completing an extensive update to the project’s Feasibility Study, setting the stage for first gold production anticipated in the first quarter of 2027.

What Does Perseus Mining’s Final Investment Decision Mean for Nyanzaga?

Perseus Mining Limited, listed on both the Australian Securities Exchange and the Toronto Stock Exchange under the symbol PRU, has committed approximately US$523 million to fully develop the Nyanzaga Gold Project. This investment will be financed through interest-free, intercompany loans sourced directly from Perseus’s robust cash and bullion reserves, which stood at US$801 million as of March 31, 2025.

Prior to this formal commitment, the company had already deployed around US$27.5 million toward early-stage works, including the establishment of site infrastructure, installation of temporary accommodation, and preliminary bulk earthworks. Additionally, Perseus initiated a comprehensive Relocation Action Plan to mitigate the impacts on local communities.

How Will the Nyanzaga Project Be Structured?

Unlike previous plans proposed by former project owners, Perseus has opted for a large-scale, open-pit mining approach in the first development phase. This strategic decision is expected to significantly enhance operational efficiency and extend the life of the mine.

The updated Feasibility Study for the Nyanzaga Gold Project outlines key production metrics, estimating a total output of 2.01 million ounces of gold over an initial 11-year Phase 1 mine life. The project is based on a JORC 2012 Probable Ore Reserve of 52.0 million tonnes at an average grade of 1.40 grams per tonne of gold.

Gold production is projected to average more than 200,000 ounces annually from financial year 2028 through 2035, with a peak output of 246,000 ounces expected in FY28. Furthermore, Perseus estimates an attractive All-In Site Cost (AISC) of US$1,211 per ounce across the mine’s operational lifetime.

What Are the Investment Metrics for Nyanzaga?

At a long-term assumed gold price of US$2,100 per ounce, the Nyanzaga Gold Project is forecast to generate impressive financial returns. Pre-tax undiscounted free cash flow is estimated at US$1.13 billion, with post-tax free cash flow projected at US$706 million.

Net Present Value (NPV) calculations using a 10% discount rate indicate a pre-tax NPV of US$404 million and a post-tax NPV of US$202 million. The internal rate of return (IRR) is expected to be 26% pre-tax and 19% post-tax.

However, should the gold price escalate to US$2,700 per ounce—a scenario within sight considering current market volatility—Nyanzaga’s projected metrics strengthen considerably. Pre-tax free cash flow would rise to US$2.25 billion, post-tax to US$1.47 billion, with a pre-tax NPV of US$1.01 billion and a corresponding IRR of 45%.

How Does the Nyanzaga Project Fit into Perseus Mining’s Broader Strategy?

The Nyanzaga development reinforces Perseus Mining’s track record of successfully delivering and operating large-scale gold mines in Africa. The company’s operational expertise was previously demonstrated with the Edikan, Sissingué, and Yaouré gold mines—all of which were developed efficiently, with Yaouré notably completed ahead of schedule and under budget in 2020.

Perseus’s Managing Director and CEO Jeff Quartermaine highlighted that the company’s previous successes, combined with constructive engagements with the Tanzanian government, have laid a strong foundation for Nyanzaga’s future. The framework and shareholder agreements with the Tanzanian government, under which Perseus owns an 80% contributing interest and the government retains a 20% non-contributing stake, further secure the project’s governance.

What Are the Next Steps for Perseus Mining at Nyanzaga?

Beyond the Phase 1 open-pit development, Perseus Mining is actively pursuing a second phase of resource definition drilling. This campaign is focused on upgrading Inferred Mineral Resources to Indicated status, potentially enabling the expansion of Ore Reserves and extending the mine’s operational life well beyond the currently planned 11 years.

The updated feasibility findings and ongoing exploration activities reflect a forward-looking strategy aimed at maximizing the long-term economic value of the Nyanzaga asset. This aligns with Perseus’s broader goal of building a diversified portfolio of long-life, high-margin gold operations across Africa.

Sentiment Analysis: Perseus Mining Stock Outlook Strengthens After Nyanzaga Approval

Perseus Mining Limited’s share price has maintained relative strength compared to the broader Australian resources sector in early 2025, reflecting solid operational execution, strong cash flows, and a healthy project pipeline. Following the company’s announcement of its Final Investment Decision to proceed with the Nyanzaga Gold Project, market sentiment around Perseus stock has notably improved.

Over the past three months, Perseus Mining shares have shown a 5% to 8% appreciation range, outperforming many peer gold producers amid fluctuating gold prices. As of the last trading session, Perseus Mining closed at approximately A$2.18 on the ASX, reflecting positive momentum fueled by optimism surrounding both the updated Nyanzaga feasibility metrics and strong existing production performance from Edikan, Sissingué, and Yaouré.

Institutional flows have remained largely supportive. According to recent data, foreign institutional investors (FII) have marginally increased their holdings by approximately 2% quarter-on-quarter, demonstrating growing confidence in Perseus’s African expansion strategy. Meanwhile, domestic institutional investors (DII), particularly Australian superannuation funds and boutique mining-focused asset managers, have maintained steady positions without significant reductions, signaling a neutral-to-positive domestic sentiment.

Analyst consensus across Australian and Canadian brokerages currently skews Buy, with several analysts citing Perseus’s disciplined balance sheet management, self-funded project pipeline, and attractive valuation multiples compared to global gold sector peers. Among leading brokerages, consensus 12-month target prices range between A$2.45 to A$2.65, implying an upside potential of roughly 10%-20% from current levels.

On a risk-adjusted basis, Perseus Mining’s decision to finance Nyanzaga entirely from internal cash reserves reduces near-term refinancing risk, a positive differentiator at a time when global mining companies are facing higher capital costs. However, analysts continue to monitor potential operational risks associated with executing a large-scale open-pit development in Tanzania, as well as any unforeseen changes in regulatory frameworks.

The technical outlook for Perseus shares suggests sustained upside momentum. Relative Strength Index (RSI) readings have recently touched 60, indicating moderately bullish sentiment without entering overbought territory. Trading volumes have also picked up notably post-FID announcement, confirming genuine investor interest rather than speculative activity.

Given these developments, expert sentiment leans toward a strong “Buy” recommendation for long-term investors, especially those seeking exposure to emerging market gold assets backed by operationally proven management teams. Short-term traders, however, may remain cautious around execution timelines and commodity price fluctuations, recommending selective accumulation on any dips.

Overall, the institutional, technical, and fundamental backdrop suggests that Perseus Mining is well-positioned to benefit from both rising gold prices and increased market appetite for African mining assets.

Why the Nyanzaga Gold Project Could Be a Game-Changer for Tanzania

Nyanzaga is not only critical for Perseus’s growth but also represents a strategic asset for Tanzania’s mining sector. The project is set to generate significant employment opportunities, infrastructure development, and fiscal revenues over its life. Additionally, by adhering to international standards such as JORC 2012 and NI 43-101, Perseus Mining has underscored its commitment to responsible mining practices.

Looking ahead, the Nyanzaga Gold Project stands poised to become a flagship example of successful international mining investment in East Africa, contributing both to Perseus Mining’s corporate evolution and to Tanzania’s broader economic landscape.