Our September 2026 quarter report. I am joined on the call today by our Chief Financial Officer, Lee-Anne de Bruin. This quarter marks the beginning of the 2027 financial year, and it has been another period of strong operational delivery from our three operating gold mines, with strong cash generation, along with the continued progress of our organic growth projects. I will take you through the operating results first before handing over to Lee-Anne for the financials.
I will start with safety. From the 1st of July, our Total Recordable Injury Frequency Rate was one for the quarter, and our Lost Time Injury Frequency Rate remains at zero. At Nyanzaga, the team has now worked more than 10.9 million hours without a lost time injury, which is an outstanding result for a project which is at peak construction with over 4,200 people on site.
We produced 92,551 ounces of gold, which was lower than the previous quarter, exceeded our plan, and takes into account the planned maintenance shutdowns at each of the assets and face positions of our pits. The average production cost were $1,472 per ounce, delivering an all-in site cost of $2,035 per ounce. Gold sales from the three operations totaled 99,661 ounces at a realized gold price of $3,881 per ounce, delivering a notional cash flow of $171 million. We finished the quarter with $900 million in cash and bullion, zero debt, and a further $400 million in undrawn debt facilities. Lee-Anne will take you through the cash movements shortly.
Moving to the individual sites and starting with Yaouré. The biggest milestone for the quarter was that the CMA Underground achieved commercial production as of the 1st of July. The underground performed well, and the ore mine increased 46% on the June quarter to 131,000 tons at 2.63 grams a ton. The underground produced 9,658 ounces, which was up 14%. Yaouré's overall production was 36,648 ounces in total, which included around 27,000 ounces from the open pits and the 9,658 ounces from the underground. Whilst this was lower than the June quarter, it was in line with our plan, with lower mill runtime due to major plant maintenance shutdowns.
Overall production is expected to increase in the second half of the year as the open pit accesses higher grades and production continues to increase from the underground, with increases in both mined tons and grade. The all-in site costs of $2,393 per ounce was slightly above plan, and that is mainly due to better than planned performance in the open pit, which gets us ahead on our stripping in the pit. We sold 40,009 ounces at $3,845 an ounce, producing a notional cash flow of $53 million.
At Edikan, we produced 35,830 ounces, which was in line with expectations. The head grade was lower than the last quarter at 0.67 grams a ton, mainly due to pit sequence, and runtime was also lower due to scheduled maintenance, and that was partially offset by higher throughput rates that were achieved in the mill. The all-in site costs fell 11% to $1,738 an ounce due to lower royalties associated with softer gold price and an over-accrual of royalties from the previous quarter. We sold 35,995 ounces at an average price of $3,968 an ounce, and Edikan generated the highest margin for the group at $2,230 an ounce and contributed $80 million in notional cash flow.
The Fetish and Esuajah North cutbacks are progressing to plan. We moved 6.7 million tons of waste in the quarter and spent $22.5 million of capital, bringing the total spend to date on those cutbacks to $27.6 million. Sissingué produced 20,073 ounces, which exceeded plan. Another good quarter for Sissingué. Quarter-on-quarter, the production is lower due to lower mill runtime associated with planned maintenance and lower head grade, offset by higher throughput rate and recovery. This is associated with the higher proportion of oxide material that was processed from the Antoinette pit. The all-in site cost was $1,913 an ounce, which was up on the June quarter, reflecting lower production volumes, partially offset by lower royalties. We sold 23,657 ounces at $3,811 per ounce, producing a notional cash flow of $38 million.
We had a good start to the year, placing us well on track for our production and cost guidance. We expect the group production between 420,000 and 480,000 ounces for the year at an all-in site cost of between $1,835 and $2,070 an ounce. Group all-in site cost for the quarter was in the guidance range for Edikan and Sissingué were both on their site ranges, and Yaouré was slightly above for the reasons I explained just earlier. We do expect the grades to improve. The guidance includes 55,000 ounces from Nyanzaga, which comes into production in January. Our cost guidance assumes a gold price of $4,000 an ounce. The other thing to note is Nyanzaga isn't included in our cost guidance, as its operating costs are capitalized until commercial production in the June quarter of 2027.
I'll hand over now to Lee-Anne, and she'll talk through the financial aspects of the quarter.
Thanks, Craig, and morning to everybody. The continued performance of our sites, coupled with the strong gold price, has allowed us to further strengthen our balance sheet. Our net cash and bullion position ended the quarter at US$900 million, and this was after ongoing investment in our growth projects across the business. The liquidity position of the business sits at US$1.3 billion with our undrawn debt facility of US$400 million. This liquidity excludes US$338 million of liquid investments in relation to our investments in PDI Gold and in Aurum.
Moving on to our returning capital to shareholders. Our balance sheet strength has allowed us to continue to return capital to shareholders. During the quarter, the board approved, as you're aware, an on-market buyback of up to AU$350 million. By the end of September, we had bought back just over 1 million shares for about AU$6.6 million. This takes into account the fact that we have had one month of non-trading due to trading blackouts. Perseus is also proposing a AUD 100 million special distribution, equating to about AUD 0.754 per share, which will be funded from the funds received on the sale of the Sudan project.
The notice of meeting released last Thursday seeks approval for a capital reduction of up to AUD 70 million or AUD 0.5 28 a share, with the balance to be paid as a special dividend. The shareholders will vote at the AGM on November 30, with the record date being set for December 18 and payment for December 29. An application to the ATO for a class ruling has been submitted on what portion will be declared as a capital reduction versus a special dividend.
On the quarterly cash and bullion movements. Focusing on the cash flows and then the capital allocation for the September quarter. The closing balance of $900 million was after operational cash flows of $187 million. Capital investment in our growth projects for the quarter of about $155 million, of which $110 million was spent in progressing the Nyanzaga Gold Project as our teams work furiously and safely to progress towards gold pour in January 2027. There was a further $3.1 spent in infrastructure elements of the CMA Underground project, with commercial production being declared for the project on July 1, 2026. As Craig alluded to, we have spent $22.5 million progressing the Edikan cutbacks.
As you know, we are going to be spending $70 million-$80 million on exploration this year. This quarter was a quarter of setup and progressing drilling contracts, and we had spent about $5 million on ongoing exploration drilling at the assets, which will ramp up over the next nine months. Continued contributions to our host countries with $56 million being paid in government dividends during the quarter and $27 million paid in corporate income taxes and withholding taxes. As I said earlier on, we had the continued returns to our shareholders with the $5 million contributed towards the buyback in the September quarter.
Just then focusing on the reconciliation between our all-in site cost to our all-in sustaining cost. The graph you see in front of you just sets out this reconciliation between the Perseus base all-in site costs, which is more cash based of $2,035 per ounce versus the World Gold Council disclosure of all-in sustaining cost metric of $1,855 per ounce. Key differences attributable in this reconciliation are the produced versus sold metric or basis for the calculation and accelerated mining at Yaouré, which resulted in the buildup of lower grade stockpiles taken to inventory.
I will hand back to Craig now then to take everyone through the update on the Nyanzaga Project.
Thank you, Lee-Anne. Our Nyanzaga Project is progressing well and rapidly moving towards production from January next year. The project is 88% complete and remains on budget and schedule for first gold in January. We have incurred $407 million, which is 84% of the $483 million budget, plus $33 million in capitalized pre-production costs. All major procurement is complete and all site installation contracts have been awarded. We have made some important progress this quarter with the commissioning team mobilized to commence commissioning in the coming period and operational personnel preparing for ramp-up. Construction of the front end of the processing plant is nearing completion, with ore expected through the primary crusher to the coarse ore stockpile in the coming period.
In terms of the process plant, the ring gears and motors are installed on both the mills and the CIL tanks are complete with topper tank steel work progressing. The 220 kV grid connection is progressing well with control buildings nearing completion and the line stringing underway. Along with the backup power station, with all 28 generators installed. Foundations are nearing completion and the electrical installation progressing. The tailings dam construction remains ahead of schedule with all three embankments complete. The HDPE liner installation is 88% complete as of the end of June, and the drainage works are nearing completion. The mining pre-strip achieved the FID budgeted target of 4.6 million BCMs at the end of September, with first ore mined and stockpiled. Mining remains on target to achieve the previously announced pre-production target of 7 million- 8 million BCMs by January.
With regards to our sustainability performance, I would like to start with safety because that underpins everything we do. We continue to record zero lost time injuries across the group, and our Total Recordable Injury Frequency Rate for the quarter was one. These are solid results, however, we continue our focused attention on fatality risk management, safety leadership and culture across our operations. As far as our social performance is concerned, we distributed $407 million in economic value to our host countries this quarter, including $244 million in local procurement and $109 million in government payments. Our $1.2 million invested in community initiatives focused on strengthening local capabilities and creating pathways to economic opportunity, with a particular emphasis on youth employment, entrepreneurship, and enabling local businesses to participate in wider supply chains.
To sum it up, it was a solid quarter for Perseus. The CMA Underground is in commercial production. Nyanzaga is on track for first gold in January. Our balance sheet is strong and debt-free, and that funds our growth. Continuing shareholder returns through the buyback and special distributions. With production building in the second half and Nyanzaga coming online, FY 2027 is set to be a transformational year for Perseus, and I would like to thank our employees and contractors across our sites for all their efforts. Thank you all for joining us today, and I will open the floor up to questions.
Thank you. Just a reminder, if you would like to ask a question to the company, please use the raise hand function within Zoom. Your first question comes from Regan Burrows at Macquarie. Please go ahead, Regan. You are on mute there, Regan.
There we go.
You are on, yeah.
Hi. Good morning, Craig and Lee-Anne. Thanks for taking my questions, and congratulations on a good quarter. Just on the CMA Underground ramp up. Firstly, I guess grades are reconciling with the plan that you have there and those improvements over the remaining of the financial year, how much that is going to be driven by grade versus volume?
Yeah. Thanks for the question, Regan . It is both. We continue to ramp up the tonnages through the course of the year to the full production rates. The grade also improves as we move into the higher grade stopes later on in the year. So, it is a combination of both.
Great. The only other one I had was on the Edikan cutback timing and the capital spend there. I saw you did 22 million thereabouts-
Yeah.
this quarter. Do we just assume that that is linearly spread out over the remainder of the financial year from a spend perspective?
Yeah. We have given cost guidance for that of around $140 million for the cutbacks this year. We are in the easy free dig, higher upper part of the pits at the moment. So your costs will increase as we get deeper due to haul distances. But also, when we bring in the drill and blast activities as well. So, that gives you a bit of an idea of how we expect the spend to pan out.
Great. Thanks for that. I will leave it there.
Thanks, Regan.
Your next question comes from Branko Skocic at JP Morgan.
Yeah, morning guys.
Please go ahead.
Thanks for your. Morning, guys. Thanks for your time. Just quickly on Nyanzaga. I was just wondering around the mining contractor, how progress discussions are here for when you eventually get into production and, I guess, when we can expect an update on this front?
Thanks, Branko. I think we'll give you an update when things are finalized there. The discussions are progressing well. It's really just a matter of completing the commercialities of that, and once we get to that point, we'll let you know.
No worries.
But at this point in time, we're actually moving all the dirt we need to move on site, and everything's on track.
No, that makes sense. The only other question from me was just on the M&A outlook, how you're thinking about the potential M&A landscape and I guess your longer term aspirations for the portfolio more broadly. If you can talk to that as well, please.
Yeah, sure, Branko. I think M&A's always a difficult one to talk to. I think we're obviously looking at opportunities like everyone else and assessing what's out there. At this point in time, that's where we're at and I think there's nothing on the cards at this point in time. But we'll continue to look and see if there's something there that makes sense for our business in terms of strategy and so forth. But yeah, there's not much more to really say about that at this time.
All good. I appreciate your time. Thank you.
Thanks, Branko.
Thank you. There are no further questions at this time, so I will now hand back to Craig for closing remarks.
Great. Well, thanks, Nathan. Look, thanks everyone for your attendance. I think, like I said earlier, a solid start to the year for Perseus. Some exciting things happening with our CMA Underground ramping up, reaching commercial production, and Nyanzaga really is moving to an exciting time for us, and we are looking forward to bringing that into production from January. Look, thanks all for your attendance today.