Yaouré development project on schedule and budget
• Yaouré remains on schedule to achieve the stretch target of first gold pour in December 2020, subject to no COVID-19 related delays.
• Development work was 52% complete, with US$186 million (70%) of the US$265 million budgeted project cost committed and US$129 million (49%) paid to suppliers of goods and services, by 31 March 2020.
Operations continue to deliver strong cashflows
• Maintained targeted cash margin of more than US$400 per ounce of gold produced, generating notional cashflow of approximately US$24 million from operations during the quarter.
• No reported cases of COVID-19 at any of Perseus’s three operating sites nor in surrounding communities.
• Sissingué continued delivering strong results, while temporary technical challenges (since addressed) detracted from Edikan’s recent strong production and cost performance.
• Key operating parameters from Edikan and Sissingué gold mines were: Parameter Unit Edikan Sissingué Perseus Group
Gold production Ounces 38,019 19,964 57,983
Production Cost US$/ounce 1,090 685 951
All-In Site Cost (“AISC”) US$/ounce 1,242 781 1,083
Gold sales Ounces 38,225 21,790 60,015
Average sales price US$/ounce 1,512 1,454 1,491
Notional Cashflow US$ million 10.3 13.4 23.7

• Potential for challenges associated with COVID-19 in the June 2020 quarter have resulted in withdrawal of production and cost guidance for the Half Year and Full Year ending 30 June 2020.

Balance Sheet strength maintained by strong cash flows
• Cash and bullion balance of US$162 million at end of the quarter after notional cashflow from operations of US$24 million and capital expenditure on Yaouré development of US$29 million.
• Corporate debt fully drawn to US$150 million during the quarter to provide operating flexibility while managing through the COVID-19 crisis, giving a net cash and bullion position of US$12 million.

IMPACT OF COVID-19 ON PERSEUS’S BUSINESS
During the quarter, the coronavirus (COVID-19) pandemic has presented a series of challenges to operational continuity at Perseus’s West African operations.
Notwithstanding this, the Company has been well placed to weather the crisis with seasoned management teams at each of our West African sites and in Perth, who have successfully managed several crises in West Africa in recent years, including the Ebola outbreak during 2014-2016. The Ebola outbreak has provided Perseus with tested crisis management capabilities and systems that are material in guiding the Company.
Supply chains for each of Perseus’s operating sites remain open in both Ghana and Côte d’Ivoire although movement of both local and foreign employees is currently impacted by government-imposed travel restrictions. Work rosters have been materially extended to accommodate travel restrictions. The Company has implemented a series of protocols at each of its operating sites aimed at eliminating the possibility of infection of its employees.
In each of the communities in which the Company operates, Perseus has, for many years, actively implemented social programmes for the benefit of host communities. This work continued during the quarter with an emphasis on initiatives designed to help combat the spread of infection.
Perseus donated a total of USD387,500 or AUD646,000, including both cash and goods, to assist both our host governments and host communities in Ghana and Côte d’Ivoire in their efforts to fight the spread of COVID-19. At the same time, we have implemented a series of measures to ensure the safety and welfare of our employees, most of whom are citizens of our host countries.
No cases of COVID-19 infection have been reported by any of Perseus’s employees or contractors operating at the Edikan and Sissingué gold mines, Yaouré gold mine construction site or in Perth, Australia. This also extends to the residents of host communities located immediately adjacent to those operations.
While we are confident that the measures that we have put in place will enable the Company to remain operational, the implementation of these measures could impact productivity of our workforce in coming months. Given the potential for changes to the Company’s operating environment as a result of COVID-19, Perseus is unable to forecast future gold production or costs with full confidence.
Accordingly, while every effort is being applied to maintain “business as usual”, and achieving production and costs as close as possible to previously stated guidance remains a top priority, the success of this approach cannot be guaranteed under the circumstances and for this reason, Perseus considers it prudent to withdraw previously published gold production and cost guidance for the Half Year and Financial Year ending 30 June 2020.

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