Perseus Mining Ltd

The fund managers believe Perseus Mining Ltd. is well-positioned to benefit from the ongoing positive gold market conditions, which have been bolstered by strong central bank buying and a more favorable macroeconomic environment. In their opinion, the company's diversified operations across two countries—Côte d'Ivoire and Ghana—soon to be expanded into a third with the Nyanzaga project, help mitigate risks often associated with African gold mining, such as political instability. The fund managers are particularly confident in Perseus due to the strong leadership of CEO Jeff Quartermaine, whose extensive experience in the region has been pivotal to the company’s success. Additionally, they appreciate Perseus' solid financial position, with net cash and bullion of US$587 million, and its growth strategy, which is expected to increase gold production by over 15% by FY28. The fund managers also note that Perseus is poised to generate significant free cash flow, which supports its capital return initiatives, including a recently announced A$100 million share buyback. While there are risks, such as the potential development of the Meyas Sand project in Sudan, the fund managers view this as a high-risk, high-reward opportunity that could add substantial value, particularly with the support of Perseus' Saudi joint venture partners. Overall, they believe Perseus offers strong growth potential with a compelling risk/reward profile.