Edikan and Sissingué operations perform strongly
• Group operating performance was strong in the June 2020 quarter, with production up 12% to 64,676 ounces, production costs down 15% to US$805 per ounce and AISCs down 14% to US$935 per ounce.
• Gold sales for the Quarter increased 30% to 78,027 ounces, weighted average gold sales price increased 4% to US$1,544 per ounce and notional cashflow increased 66% to US$40 million.
• Key operating parameters for the Quarter by each operation included:

Parameter Unit Edikan Sissingué Perseus Group
Gold production Ounces 41,281 23,395 64,676
Production Cost US$/ounce 906 626 805
All-In Site Cost (“AISC”) US$/ounce 1,049 734 935
Gold sales Ounces 51,168 26,859 78,027
Average sales price US$/ounce 1,528 1,575 1,544
Notional Cashflow US$ million 20 20 40

• June 2020 Half Year gold production of 122,659 ounces at an AISC of US$1,005 per ounce was down slightly compared to the prior half year. Full 2020 financial year (FY2020) gold production of 257,639 ounces was 5% less than in the prior year with AISC stable at US$972 per ounce or 1% higher.
• For the December 2020 Half Year, production and AISC guidance has been set at 139,000 to 125,500 ounces at an AISC of US$940 to US$1,205 per ounce. Guidance comes with the caveat that this is subject to Perseus’s operations remaining largely unaffected by the COVID-19 crisis.
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 was 67% complete, with US$204.2 million (77%) of the US$265 million budgeted project cost committed and US$156 million (59%) paid to suppliers of goods and services, by 30 June 2020.

Balance Sheet strength maintained by strong cash flows
• Cash and bullion totalled US$164 million at 30 June 2020, an increase of US$2 million after spending US$27 million of capital on Yaouré this quarter.
• Corporate debt is fully drawn to the facility limit of US$150 million, giving operating flexibility during the COVID-19 crisis, and resulting in net cash and bullion of US$14 million at 30 June 2020.

IMPACT OF COVID-19 ON PERSEUS’S BUSINESS
The corona virus (COVID-19) pandemic represented a significant risk for Perseus at its West African mines and development site this quarter and this is expected to continue into the foreseeable future.
To date, no cases of COVID-19 infection have been reported by any of Perseus’s employees or contractors at the Edikan or Sissingué gold mines. Both mines are operating under tight lockdown in “island mode”, where workers are segregated depending on the nature of their role. The extent of any infection, if any, within our host communities located immediately adjacent to Perseus’s operations is difficult to assess due to limited public reporting of details by authorities.
While the effects of COVID-19 at Edikan and Sissingué did not materially impact overall operating performance during the quarter, incremental operating costs of approximately US$20 per ounce were incurred across the Group (before offsets) in implementing measures to ensure business continuity and the safety and health of our staff at the mines. Operations were impacted to an extent by shortages of skilled workers in the “green zone” of the island mode during maintenance shutdowns prolonging maintenance tasks, general fatigue and stress among management and the workforce resulting from extended work rosters and quarantine periods, and inability to repatriate foreign staff and also bring international experts to site to assist with operations requiring special skills as needed.
Following the end of the quarter, three employees at the Yaouré development project were diagnosed with the COVID-19 virus and were successfully treated offsite in Abidjan where they are all currently recovering at home. Prompt action taken by Perseus’s on-site management team to quarantine other employees who had prior contact with the original infected employee appears to have successfully contained the spread of infection amongst the workforce. Notwithstanding the regrettable infections that occurred post quarter-end, the impact of COVID-19 has been negligible on the progress made to date at the Yaouré development project. Procurement of materials and equipment required for the project development is virtually complete and subject to the successful containment of the spread of COVID-19 amongst the workforce, confidence in achieving the stretch target of first gold by December 2020 remains strong. Additional development costs of approximately US$1.12 million have been incurred in implementing measures to ensure full business continuity at Yaouré, but this amount is well within the contingency sum included in the budget and is not expected to result in a cost overrun of the original construction budget of US$265 million.
While we remain confident that the measures that Perseus has put in place at its mines and its development project will enable Perseus to remain fully operational, the potential unchecked spread of COVID-19 in West African countries remains a risk to the Company in coming months. The rate of increase in reported COVID-19 infections in both Ghana and Côte d’Ivoire in the last month has accelerated and indicates that the pandemic in both countries is far from over. Government and health authorities have managed the crisis competently to date, but the next three months will be telling in terms of the continued availability of medical resources needed to respond if the situation continues to deteriorate.
Given the potential for changes to Perseus’s operating environment due to COVID-19, it is challenging to forecast future gold production or costs with full confidence. Every effort is being applied to maintaining “business as usual” and achieving internal production and cost targets, but success cannot be guaranteed.

FINANCIAL POSITION
(Unaudited) Cashflow and Balance Sheet
Based on the spot gold price of US$1,768 per ounce and an A$:US$ exchange rate of 0.6891 at 30 June 2020, the total value of cash and bullion on hand at the end of the quarter was A$237.5 million, (US$163.6 million) including cash of A$218.2 million (US$150.3 million) and 7,522 ounces of bullion on hand, valued at A$19.3 million (US$13.3 million). This equated to an increase of US$1.6 million in cash and bullion, however due to a strengthening of the AUD to USD there was a decrease in AUD terms of A$28.0 million.
Perseus maintained the total amount drawn under our revolving corporate cash advance facility, at US$150 million to provide maximum operational flexibility while managing the COVID-19 crisis.
As a result of the above, Perseus’s net cash and bullion position at the end of the quarter was A$19.8 million (US$13.6 million) (Refer to Figure 1 below) which was A$0.1 million (US$1.6 million) more than the balance at the end of the March 2019 quarter, notwithstanding capital expenditure of US$27.1 million on the Yaouré project development during the period.
Figure 1: Quarterly balance of cash and bullion, interest-bearing liabilities and net cash and bullion

see Fugures on
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The overall movement in cash and bullion during the quarter as shown below in Figure 2 takes account of the positive operating margins from both the Edikan (A$30.1 million) and Sissingué (A$30.0 million) operations, working capital outflow (A$3.6 million), Australian and West African corporate costs (A$4.9 million), exploration (A$8.4 million), debt service (A$0.7 million), Yaouré development (A$41.2 million), foreign exchange loss on cash and bullion (A$21.5 million) and Ghana income tax instalment (A$7.7 million).
At 30 June 2020, Perseus’s working capital totalled A$249.8 million, a decrease of A$19.0 million relative to the 31 March 2020 balance (A$268.8 million), largely as a result of the strengthening AUD against the USD.

see Fugures on
https://perseusmining.com/wp-content/uploads/2020/07/02256800.pdf

Gold Price Hedging
At the end of the quarter, gold forward sales contracts were in place for 221,765 ounces of gold at a weighted average sales price of US$1,381 per ounce. These hedges are designated for delivery progressively over the period up to 30 June 2022. Perseus also held spot deferred sales contracts for a further 101,300 ounces of gold at an average sales price of US$1,574 per ounce. Combining both sets of sales contracts, Perseus’s total hedged position at the end of the quarter was 323,065 ounces at a weighted average sales price of US$1,442 per ounce.
Hedging contracts provide downside price protection to approximately 22% of Perseus’s currently forecast gold production for the next three years, while 78% of forecast production is potentially exposed to movements in the gold price.