Perseus Mining Reports on Half Year Ending 31 December 2020

PERTH, Western Australia, Feb. 23, 2021 (GLOBE NEWSWIRE) — Perseus Mining Limited (“Perseus” or the “Company”) (TSX & ASX: PRU) has released its Interim Financial Report for the six months ending December 31, 2020 (“December 2020 Half Year” or the “Half Year”).
The Perseus group produced a total of 137,386 ounces of gold in the December 2020 Half Year, 2% more than in the corresponding six-month period in 2019. In the same period, the weighted average all-in site costs (“AISC”), including the costs of production, royalties and sustaining capital, increased by 6% relative to the December 2019 half year, averaging US$1,000 per ounce of gold produced.Reflecting the successful transition to an efficient multi-mine, multi-jurisdictional gold producer and a stronger market for gold, Perseus recorded a 61% increase in the Group’s net profit after tax to A$49.1 million during the December 2020 Half Year compared to the corresponding period in 2019. This profit was based on the strong operating performance at the low cost Sissingué Gold Mine in Côte d’Ivoire, (55,909 ounces of gold at an AISC US$643 per ounce), combined with steady gold production at the Edikan Gold Mine (78,790 ounces of gold at US1,253 per ounce). Perseus’s third gold mine, Yaouré, where first gold was poured in December 2020, contributed a total of 2,687 ounces to the Group’s total half-yearly gold production although with net costs being capitalised until the declaration of Commercial Production, the mine’s activities did not contribute to the Half Year earnings result.Perseus’s net profit after tax of A$49.1 million or 3.0 cents per share attributable to the owners of the parent company, materially exceeded the net profit after tax of A$30.4 million or 2.6 cents per share earned in the previous corresponding half year. This improved performance was predominantly due to:A period-on-period decrease of A$32.5 million in the depreciation and amortisation expense relating to gold production.
 Administration and other corporate expenses decreasing to A$9.8 million from A$11.5 million in the December 2019 half year.
 A decrease in income tax expense, which at A$8.4 million, compared favourably to the expense of A$12.9 million incurred in the corresponding period in 2019.
 A foreign exchange loss of A$13.2 million, A$20.2 million more in the prior year when a foreign exchange gain of A$7.0 million was recorded. The loss occurred due to an appreciation in the value of the Australian dollar against the US dollar and revaluation of intercompany loans.As at December 31, 2020, the total value of cash (A$120.5 million) and bullion on hand (A$32.7 million) was A$153.2 million, or A$38.3 million more than at December 31, 2019. Operating cash flows increased by A$30.4 million in the Half Year to A$103.6 million, or 8.6 cents per share, as revenue increased and payments to suppliers and employees decreased. A total of A$150.6 million of cash was invested during the period, including A$111.9 million on the development of the Yaouré Gold Mine and A$11.0 million on exploration. A net total of A$27.6 million of borrowings were repaid in cash during the period and a further A$7.6 million was paid in cash for borrowing costs.The Company’s net tangible assets on December 31, 2020 were A$853.5 million or A$0.70 per share including cash and bullion on hand. Total interest-bearing liabilities stood at A$168.9 million, A$48.7 million less than on June 30, 2020.Looking to the future, Perseus’s financial performance is expected to remain strong with continuing solid gold production and an improving cost structure at its two operating gold mines. Development of Yaouré, Perseus’s third operation, will be a major focus in the 2021 financial year. Production and cost guidance for the 2021 financial year is as follows: