Why gold miner Perseus Mining (ASX: PRU) is struggling today
Gold miner Perseus Mining (ASX: PRU) is trading down more than 4% this morning after the $7.1bn miner delivered a disappointing trading update.
PRU has slipped this morning following a softer-than-expected September quarter, with lower gold production and rising costs missing the mark. Gold production fell 15% quarter-on-quarter to 92,551 ounces, while sales declined 13% to 99,661 ounces. Adding to the pressure, the average realised gold price slipped 5% to US$3,881/oz, while all-in site costs rose almost 5% to US$2,035/oz.
- The year-on-year comparison was equally challenging, with production down 7% and costs jumping from US$1,463/oz, highlighting the margin pressures facing the West African gold producer.
However, PRU maintained its FY27 guidance of 420,000–480,000 ounces at an all-in site cost of US$1,835–2,070/oz, while noting that September quarter production exceeded its internal expectations.
The company also finished the period with a healthy US$900m in cash and bullion, providing significant financial flexibility. While the maintained guidance and strong balance sheet are reassuring, the combination of declining production and rising costs has clearly disappointed investors, with the market now looking for a meaningful operational improvement over the coming quarters.
MM is neutral towards PRU; it’s not one of our preferred ASX miners.
