Perseus Mining Loses A$2.1bn Predictive Discovery Battle- Is (ASX: PRU) Now a Better Buy?

Perseus Mining’s Failed Bid: What’s Next for ASX: PRU?

Perseus Mining (ASX: PRU) has withdrawn its A$2.1 billion takeover bid for Predictive Discovery. The move came after Robex Resources matched Perseus’s offer before the December 10 deadline. Perseus had offered a 24.5 per cent premium, and Predictive’s board called it a superior deal. However, Robex acted quickly to retain its merger partner.

Losing a bidding war is never great news. However, we believe this outcome might actually work in Perseus’s favour. The company still owns 17.8 per cent of Predictive, keeps its US$837 million cash balance, and avoids the headache of expanding into Guinea. With shares up 94 per cent over the past year, the big question now is whether PRU is still worth buying at these levels.

What are the Best ASX Mining stocks to invest in right now?

Check our buy/sell tips

Why the Failed Deal Could Be Good News for Perseus

The Predictive deal would have been a big move. It would have combined the Bankan gold project in Guinea with Perseus’s West African mines. But in our view, it also came with real risks. Guinea is a new country for Perseus, and setting up operations in unfamiliar places can be tricky and expensive. The deal was also all-stock, meaning existing shareholders would have faced dilution.

By walking away, Perseus keeps its strong balance sheet. The company finished September 2025 with US$837 million in cash and gold, zero debt, and access to another US$300 million credit line. This suggests management has plenty of flexibility to chase better deals or fund growth projects without stretching finances.

Perseus also keeps its 17.8 per cent stake in Predictive. If Robex develops Bankan successfully, Perseus still benefits from the upside without doing any of the heavy lifting. We believe this is a smart way to stay exposed to a quality asset without taking on operational risk.

Perseus Has Plenty of Growth Coming

Even without Predictive, Perseus has a clear path forward. The company runs three gold mines in Ghana and Côte d’Ivoire, producing around 400,000 to 440,000 ounces per year. Last quarter, it generated a cash margin of US$1,612 per ounce produced. For context, this is a healthy margin that shows the business is making good money at current gold prices.

The real excitement is the Nyanzaga project in Tanzania. This new mine is on track to start production in the March Quarter of 2027. Once it ramps up, Perseus will have a fourth producing asset and higher overall output. This suggests the company’s production base could grow meaningfully over the next two years.

The Investor’s Takeaway

Perseus shares have had a strong run, climbing 94 per cent in the past year and hitting an all-time high of A$5.42 in November. At around A$5.20 today, the stock is trading near record levels. This naturally raises valuation questions for new buyers.
However, analysts remain positive. The average price target sits at A$5.87, implying about 13 per cent upside from current levels. Most analysts rate the stock a moderate buy.

The key risk is that Perseus may struggle to find good acquisition targets. If management cannot land smart deals, growth becomes dependent on existing projects alone. That said, with nearly US$1 billion in available cash and multiple catalysts ahead, we believe patient investors could be rewarded here.

For current holders, the failed bid changes little. For new investors, waiting for a pullback might offer a better entry. But those comfortable with the valuation may find today’s price reasonable given what’s ahead.