PERSEUS MINING LIMITED — Interim / Quarterly Report 2020

Feb 19, 2020

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ABN 27 106 808 986

Interim Financial Report

For the half-year ended 31 December 2019

This interim report incorporating Appendix 4D is provided to the Australian Securities Exchange (ASX) under ASX Listing Rule 4.2A.3

Perseus Mining Limited Contents

	Page
Appendix 4D	1
Corporate directory	2
Directors’ report	3
Interim financial statements	8
Directors’ declaration	26
Independent auditor’s review report	27

Perseus Mining Limited Appendix 4D For the half-year ended 31 December 2019

Appendix 4D under the ASX Listing Rule 4.2A.3

Results for announcement to the market

		Six months		Six months
		to		to
		31 December 2018		31 December 2019
		$‘000		$‘000
Revenue from ordinary activities	Down 3%	281,643	to	274,421
Profit after tax from ordinary activities	Up 193%	10,393	to	30,410
(Loss) / profit after tax attributable to members Up187%		10,438	to	29,813

Net tangible assets per share

	31	December	31	December
		2018		2019
Net tangible assetsper share		$0.66		$0.67

Dividends / distributions

No interim dividend was paid or declared for the period ended 31 December 2019.

Details of entities over which control has been gained or lost during the half-year

No control over entities has been gained or lost in the half-year ended 31 December 2019.

Explanation of results

See commentary on results in the Directors’ report on pages 3-6.

Page 1

Perseus Mining Limited Corporate directory

Directors
	Terence Sean Harvey	Non-Executive Chairman
	Jeffrey Allan Quartermaine	Managing Director & Chief Executive Officer
	John Francis Gerald McGloin	Non-Executive Director
	Sally-Anne Georgina Layman	Non-Executive Director
	Daniel Richard Lougher	Non-Executive Director
	David Meldrum Ransom	Non-Executive Director
Company secretary	Martijn Paul Bosboom
Registered and	Level 2
corporate office	437 Roberts Road
	Subiaco, Western Australia 6008
	Australia
	PO Box 1578
	Subiaco, Western Australia 6904
	Telephone:	(61 8) 6144 1700
	Facsimile:	(61 8) 6144 1799
	Email address:	info@perseusmining.com
	Website:	www.perseusmining.com
Ghana office	4 Chancery Court
	147A Giffard Road, East Cantonments
	Accra - Ghana
	PO Box CT2576
	Cantonments
	Accra - Ghana
	Telephone:	(233) 302 760 530
	Facsimile:	(233) 302 760 528
Côte d’Ivoire office	II Plateaux - Vallons
	Rue J75/J44 Lot 1438 ilot 145
	06 BP 1958 Abidjan 06, Côte d’Ivoire
	Telephone:	(225) 22 41 9126
	Facsimile:	(225) 22 41 0925
Share registry	Computershare Investor Services Pty Limited	Computershare Investor Services Inc.
	Level 11	Level 3
	172 St Georges Terrace	510 Burrard Street
	Perth, Western Australia 6000	Vancouver, British Columbia V6C3B9
	Australia	Canada
	Telephone: (61 3) 9415 4000	Telephone: (1 604) 661 9400
	Facsimile: (61 3) 9473 2500	Facsimile: (1 604) 661 9401
	www.computershare.com	www.computershare.com
Auditors	PricewaterhouseCoopers
	125 St Georges Terrace
	Perth, Western Australia 6000
Stock exchange listings	Australian Securities Exchange	(ASX – PRU)
	Toronto Stock Exchange	(TSX – PRU)
	Frankfurt Stock Exchange	(WKN: AOB7MN)

Page 2

Perseus Mining Limited Directors’ report

Your directors present their report on the consolidated entity (referred to hereafter as the “group”) consisting of Perseus Mining Limited (“Perseus” or the “company”) and its controlled entities for the half-year ended 31 December 2019 (the “period”). Perseus is a company limited by shares that is incorporated and domiciled in Australia. Unless noted otherwise, all amounts stated are expressed in Australian dollars.

DIRECTORS

The following persons were directors of Perseus during the period and up to the date of this report:

Terence Sean Harvey	Non-Executive Chairman
Jeffrey Allan Quartermaine	Managing Director and Chief Executive Officer
John Francis Gerald McGloin	Non-Executive Director
Sally-Anne Georgina Layman	Non-Executive Director
Daniel Richard Lougher	Non-Executive Director
David Meldrum Ransom (appointed 29 November 2019)	Non-Executive Director

Resignation

Colin John Carson resigned as Executive Director effective 29 November 2019.

RESULTS

The group’s net profit after tax for the period ended 31 December 2019, after bringing to account a foreign exchange gain, was $30.410 million (31 December 2018: $10.393 million). EBITDA for the period ended 31 December 2019 was up significantly from the comparative period to $123.940 million (31 December 2018: $86.937 million). EBITDA excluding foreign exchange gain and write offs was $117.299 million, up from $70.630 million in the comparative period. There was a $50.328 million decrease in cost of sales in the current period to $148.668 million (31 December 2018: $198.996 million) mainly attributable to the lower mining costs at Edikan following a revised mining strategy that took effect from 1 January 2019.

The foreign exchange gain reduced by $9.428 million in the current period to a gain of $6.974 million (31 December 2018: $16.402 million gain) which related to the weakening of the United States dollar against the Australian dollar compared to the comparative period. Further information on the group’s results can be found in the Statement of Comprehensive Income on page 9.

PRINCIPAL ACTIVITIES

The principal activities of the group during the period were gold production, mineral exploration and gold project development in the Republic of Ghana (“Ghana”) and the Republic of Côte d’Ivoire (“Côte d’Ivoire”), both of which are located in West Africa.

REVIEW OF OPERATIONS

During the period, the group continued to focus its activities on its three key projects, namely the Edikan Gold Mine in Ghana (“EGM” or “Edikan”), Sissingué Gold Mine (“SGM” or “Sissingué”) and Yaouré Gold Project (“Yaouré”), both in Côte d'Ivoire.

Edikan Gold Mine - Ghana

The group owns a 90% beneficial interest in the EGM, a producing gold mine located in Ghana. The remaining 10% interest in the EGM is a free carried shareholding in the project company owned by the Ghanaian government.

Page 3

Perseus Mining Limited Directors’ report

Operations

Operating results at the EGM for the six months to 31 December 2019 and the corresponding period in 2018 were as follows.

as follows.
Parameter	Unit	Six months to	Six months to
		31 December 2019	31 December 2018
Total ore and waste mined	kt	12,636	15,386
Ore mined	kt	3,121	4,600
Ore milled	kt	3,577	3,551
Milled head grade	g/t gold	0.94	1.16
Gold recovery	%	85	79
Goldproduced	ounces	92,338	104,736

A total of 12,636k tonnes of ore and waste were mined during the period from the Abenabna, Bokitsi and Esuajah North pits, including 238k tonnes of oxide ore at 1.46g/t gold and 2,883k tonnes of fresh/transitional ore at 0.97/t gold. Ore stockpiles (including both high and low-grade ore but not mineralised waste) plus crushed ore decreased to 5,920k tonnes grading 0.63 g/t containing approximately 119,311 oz of gold during the six months to 31 December 2019. This stockpile is comprised of approximately 10% oxide ore and 90% primary ore.

Total mill throughput for the period was 3,577k tonnes of ore grading 0.94g/t of gold, combined with a gold recovery rate of 85% resulted in the recovery of 92,338 ounces of gold. A total of 90,265 ounces of gold were sold at a weighted average price of US$1,388/oz.

The 92,338 ounces of gold were produced at an all-in site cost (including production costs, royalties and sustaining capital) (“AISC”) of US$1,031/oz. The 12% decrease in gold production from 104,736 ounces in the corresponding period was a result of lower mill head grade, whilst the 6% decrease in AISC from US$1,096/oz in the corresponding period was as a result of lower mining costs, following a revised mining strategy that took effect from 1 January 2019.

Sissingué Gold Mine – Côte d’Ivoire

The SGM is located in the north of Côte d’Ivoire and lies within the Sissingué exploitation permit that covers an area of 446km² and is bounded on one side by the international border between Côte d’Ivoire and Mali. The exploitation permit is located along a structural/stratigraphic corridor within the Syama-Boundiali greenstone belt approximately 42km south-southwest of the Syama gold mine in Mali and 65km west northwest of the Tongon deposit in Côte d’Ivoire. The group owns an 86% interest in the SGM, with a 10% a free carried interest held by the Ivorian government and 4% owned by local interests.

Operations

Operating results at the SGM for the six months to 31 December 2019 and the corresponding period in 2018 were as follows.

Parameter	Unit	Six months to	Six months to
		31 December 2019	31 December 2018
Total ore and waste mined	kt	3,338	2,562
Ore mined	kt	1,153	598
Ore milled	kt	895	699
Milled head grade	g/t gold	1.57	1.67
Gold recovery	%	94	95
Goldproduced	ounces	42,642	35,819

Page 4

Perseus Mining Limited Directors’ report

A total of 3,338k tonnes of ore and waste were mined during the period, including 745k tonnes of oxide ore at 0.87g/t gold and 408k tonnes of fresh/transitional ore at 1.25g/t gold. Ore stockpiles (including both high and low-grade ore but not mineralised waste) plus crushed ore increased to 551k tonnes grading 0.71 g/t containing approximately 12,721 oz of gold during the six months to 31 December 2019. This stockpile is comprised of approximately 79% oxide ore and 21% primary ore.

Total mill throughput for the period was 895k tonnes of ore grading 1.57g/t of gold, combined with a gold recovery rate of 94% resulted in the recovery of 42,642 ounces of gold. A total of 44,471 ounces of gold were sold at a weighted average price of US$1,401/oz. The 42,642 ounces of gold were produced at an AISC of US$750/oz, representing a 5% increase in AISC from US$717/oz in the corresponding period as a result of higher mining costs due to higher material mined, higher processing costs due to higher tonnes milled and higher royalty expenses stemming from higher gold prices.

Yaouré – Côte d’Ivoire

Yaouré is located in central Côte d’Ivoire, 40km northwest of Yamoussoukro, the political capital, and 270km northwest of Abidjan, the economic capital, of Côte d’Ivoire. Yaouré lies within a rural area, 22km east-northeast of the city of Bouaflé, and 5km west of the Kossou dam and hydroelectric power station. The nearest villages to the site are Angovia and Allahou-Bazi, which are located approximately 1km east of the proposed mine site.

Engineering

With a decision taken in May 2019 to develop Perseus’s third gold mine, Yaouré, onsite and offsite activities have continued to schedule and on budget during the period, with significant progress being made on both fronts.

By the end of the period, planned plant engineering was 99% complete and procurement work (including delivery to site) was on schedule at 63% complete. Ninety-eight of the planned 101 contract packages had been awarded and tenders were under consideration for a further contract package. Off-site fabrication of critical steel work including the SAG and Ball Mills is well advanced and on schedule for completion and delivery to site by March 2020. Full scale construction of the processing facilities and associated infrastructure began in October 2019 and since then encouraging progress has been made on a range of fronts.

In early December 2019, a mining services contract was awarded to EPSA Internacional SA (“EPSA”), a privately owned, global earthmoving and mining contractor that is headquartered in Spain and provides a range of mining, civil works and earthmoving services to a blue-chip list of mining clients located in 15 countries.

Land compensation is also progressing with the Inter-Ministerial Committee expected to make a recommendation on compensation rates shortly. Full access to the site has been provided to Perseus pending finalisation of the land compensation rates.

At the end of the period, works required to enable the first pour of gold at Yaouré by the stretch target date of late December 2020 were generally on schedule.

Execution of Mining Convention

Discussions between Perseus’s special purpose exploitation company, Perseus Mining Yaouré SA (“PMY”) and the Ivorian departments of Mining and Geology, Customs, Environment, Budget and Finance on the terms of a Mining Convention to confirm fiscal stability and other arrangements that will apply during the life of the Yaouré Gold Mine, were successfully concluded during the period and the Mining Convention was executed on 9 December 2019.

The Mining Convention sets out the general, legal, fiscal, customs, financial, economic, social, administrative and environmental conditions under which PMY will conduct mining operations at Yaouré. It provides stability of the

Page 5

Perseus Mining Limited Directors’ report

fiscal and customs regime under which PMY will operate, including confirming benefits and arrangements contained in the Ivorian Mining Code, such as VAT, customs and other tax concessions, and stabilises royalties payable at the rates set in the current mining regulations.

The terms of the Yaouré Mining Convention are similar to the terms contained in the Sissingué Mining Convention with some adjustments incorporated to suit the specific circumstances of the Yaouré Gold Mine.

ROUNDING

The amounts contained in the financial report have been rounded to the nearest $1,000 (where rounding is applicable) where noted ($’000) under the option available to the group under ASIC Corporations (Rounding in Financial/Directors’ Reports) Instrument 2016/191. This legislative instrument applies to the group.

AUDITOR’S INDEPENDENCE DECLARATION

Section 307C of the Corporations Act 2001 requires our auditors, PricewaterhouseCoopers, to provide the directors of Perseus with an Independence Declaration in relation to the review of the interim financial report. This Independence Declaration is set out on the next page and forms part of this directors’ report for the period ended 31 December 2019.

Signed in accordance with a resolution of directors.

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J A Quartermaine Managing Director and Chief Executive Officer Perth, 19 February 2020

Page 6

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Auditor’s Independence Declaration

As lead auditor for the review of Perseus Mining Limited for the half-year ended 31 December 2019, I declare that to the best of my knowledge and belief, there have been:

• (a) no contraventions of the auditor independence requirements of the Corporations Act 2001 in relation to the review; and

• (b) no contraventions of any applicable code of professional conduct in relation to the review.

This declaration is in respect of Perseus Mining Limited and the entities it controlled during the period.

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Craig Heatley Partner PricewaterhouseCoopers

Perth 19 February 2020

PricewaterhouseCoopers, ABN 52 780 433 757 Brookfield Place, 125 St Georges Terrace, PERTH WA 6000, GPO Box D198, PERTH WA 6840 T: +61 8 9238 3000, F: +61 8 9238 3999, www.pwc.com.au

Liability limited by a scheme approved under Professional Standards Legislation.

Page 7

Perseus Mining Limited Financial statements 31 December 2019

Contents

ntents	Page
Statement of comprehensive income	9
Statement of financial position	10
Statement of changes in equity	11
Statement of cash flows	12
Notes to the financial statements	13-25
Directors’ declaration	26
Independent auditor’s review report	27

Table of notes to the consolidated financial statements:

	Performance	Operating assets and	Capital and financial risk	Unrecognised items
		liabilities	management
1.	Segment information	4. Inventories	8. Derivative financial	12. Change in accounting
			instruments	policies and disclosures
2.	Other income / expenses	5. Property, plant and
		equipment	9. Interest-bearing	13. Contingencies
			liabilities
3.	Income tax benefit /	6. Mine properties	10. Issued capital and	14. Commitments
	(expense)		reserves
		7. Mineral interest	11. Fair value of financial	15. Events occurring after
		acquisition and	instruments	the end of the
		exploration		reporting period
		expenditure

These half-year financial statements are the financial statements of the consolidated entity consisting of Perseus Mining Limited and its subsidiaries. The financial statements are presented in the Australian currency.

Perseus Mining Limited is a company limited by shares, incorporated and domiciled in Australia. Its registered office and principal place of business is:

Perseus Mining Limited Second Floor 437 Roberts Road Subiaco, Western Australia 6008 Australia

A description of the nature of the consolidated entity’s operations and its principal activities is included in the review of operations and activities in the directors’ report on pages 3 to 6, which is not part of these interim financial statements.

These interim financial statements were authorised for issue by the directors on 19 February 2020. The directors have the power to amend and reissue the interim financial statements.

Through the use of the internet, we have ensured that our corporate reporting is timely, complete and available globally at minimum cost to the company. All press releases, financial statements and other information are available at our News and Reports section on our website at www.perseusmining.com.

Page 8

Perseus Mining Limited Statement of comprehensive income For the half-year ended 31 December 2019

Notes Continuing operations Revenue Cost of sales Gross profit before depreciation and amortisation Depreciation and amortisation relating to gold production 2 Gross profit from operations Other income Other expenses Administration and other corporate expenses Foreign exchange gain 2 Depreciation and amortisation expense 2 Write-downs and impairment 2 Finance cost 2 Profit before income tax Income tax (expense) / benefit 3 Net profit after income tax Other comprehensive income Items that may be reclassified subsequently to profit or loss Exchange differences on translation of foreign operations Net changes in fair value of cash flow hedges Net changes in fair value of financial assets Income tax benefit relating to cash flow hedges Total comprehensive income for the period Gain attributable to: Owners of the parent Non-controlling interests Total comprehensive income attributable to: Owners of the parent Non-controlling interests Basic earnings per share Diluted earnings per share	Consolidated 31 Dec 2019 31 Dec 2018 $’000 $’000
	274,421 281,643 (148,668) (198,996)
	125,753 82,647 (77,931) (78,082)
	47,822 4,565 3,005 1,092 (126) (5,251) (11,460) (7,812) 6,974 16,402 (181) (74) (208) (95) (2,502) (3,357)
	43,324 5,470 (12,914) 4,923
	30,410 10,393 (11,328) 14,589 2,255 (4,788) (51) (522) (1,505) 1,323
	19,781 20,995
	29,813 10,438 597 (45)
	30,410 10,393
	17,061 20,807 2,720 188
	19,781 20,995
	2.55 cents 1.01 cents 2.50 cents 0.88 cents

The accompanying notes form part of these financial statements.

Page 9

Perseus Mining Limited Statement of financial position As at 31 December 2019

Notes Current assets Cash and cash equivalents Receivables Inventories 4 Prepayments Income tax receivable Total current assets Non-current assets Receivables Inventories 4 Financial assets at fair value through other comprehensive income Property, plant and equipment 5 Right of use assets 12 (a) Mine properties 6 Mineral interest acquisition and exploration expenditure 7 Total non-current assets Total assets Current liabilities Payables and provisions Derivative financial instruments 8 Interest bearing liabilities 9 Lease liabilities 12 (a) Total current liabilities Non-current liabilities Provision Derivative financial instruments 8 Interest bearing liabilities 9 Lease liabilities 12 (a) Deferred tax liability Total non-current liabilities Total liabilities Net assets Equity Issued capital 10 Reserves Accumulated losses Parent entity interest Non-controlling interest Total Equity	Consolidated 31 Dec 2019 30 June 2019 $’000 $’000
	67,467 125,406 13,193 10,089 121,580 126,899 7,540 6,080 12,310 -
	222,090 268,474
	4,342 7,162 55,407 24,325 397 444 551,661 418,712 2,363 - 193,300 232,761 22,306 17,405
	829,776 700,809
	1,051,866 969,283
	88,056 69,494 6,533 8,508 - 7,831 1,281 -
	95,870 85,833
	23,380 19,522 - 1,603 71,286 36,996 939 - 51,720 41,817
	147,325 99,938
	243,195 185,771
	808,671 783,512
	776,564 776,564 54,142 61,228 (31,763) (61,576)
	798,943 776,216 9,728 7,296
	808,671 783,512

The accompanying notes form part of these financial statements.

Page 10

Perseus Mining Limited Statement of changes in equity For the half-year ended 31 December 2019

					Consolidated
	Issued capital	Accumulated losses	Share based payments reserve	Foreign currency translation reserve	Asset revaluation reserve		Hedge reserve	Non-controlling interest’s reserve	Non- controlling interest	Total equity
	$’000	$’000	$’000	$’000	$’000		$’000	$’000	$’000	$’000
Six months to 31 December 2019
Balance at 1 July 2019	776,564	(61,576)	26,964	40,766		383	(6,627)	(258)	7,296	783,512
Profit for the period	-	29,813	-	-		-	-	-	597	30,410
Currency translation differences	-	-	-	(11,811)		-	-	-	483	(11,328)
Net change in financial assets at fair value through other comprehensive income	-	-	-	-		(51)	-	-	-	(51)
Net change in fair value of cash flow hedges	-	-	-	-		-	465	-	1,790	2,255
Income tax relatingto components of other comprehensive income	-	-	-	-		-	(1,355)	-	(150)	(1,505)
Total comprehensive income	-	29,813	-	(11,811)		(51)	(890)	-	2,720	19,781
Share basedpayments	-	-	5,666	-		-	-	-	(288)	5,378
Balance at 31 December 2019	776,564	(31,763)	32,630	28,955		332	(7,517)	(258)	9,728	808,671
Six months to 31 December 2018
Balance at 1 July 2018	720,943	(68,567)	24,645	24,809		739	4,550	(258)	7,453	714,314
Profit for the period	-	10,438	-	-		-	-	-	(45)	10,393
Currency translation differences	-	-	-	14,110		-	-	-	479	14,589
Net change in financial assets at fair value through other comprehensive income	-	-	-	-	(522)		-	-	-	(522)
Net change in fair value of cash flow hedges	-	-	-	-		-	(4,410)	-	(378)	(4,788)
Income tax relatingto components of other comprehensive income	-	-	-	-		-	1,191	-	132	1,323
Total comprehensive income	-	10,438	-	14,110	(522)		(3,219)	-	188	20,995
Exercise of warrants	60	-	-	-		-	-	-	-	60
Share basedpayments	-	-	1,175	-		-	-	-	(87)	1,088
Balance at 31 December 2018	721,003	(58,129)	25,820	38,919		217	1,331	(258)	7,554	736,457

The accompanying notes form part of these financial statements.

Page 11

Perseus Mining Limited Statement of cash flows For the half-year ended 31 December 2019

Notes Operating activities Receipts in the course of operations Payments to suppliers and employees Interest received Net cash inflow from operating activities Investing activities Payments for exploration and evaluation expenditure Payments for property, plant and equipment Payments for mine properties Payments for assets under construction Refund of / (payments for) security deposits Net cash outflow from investing activities Financing activities Proceeds from exercise of warrants Repayment of borrowings Proceeds from borrowings Borrowing costs Net cash inflow / (outflow) from financing activities Net (decrease) / increase in cash held Cash and cash equivalents at the beginning of the financial period Effects of exchange rate fluctuations on the balances of cash held in foreign currencies Cash and cash equivalents at the end of the financial period	Consolidated 31 Dec 2019 31 Dec 2018 $’000 $’000
	274,177 281,232 (202,266) (196,296) 1,300 678
	73,212 85,614
	(6,378) (4,332) (1,068) (24) (8,195) (10,417) (134,636) (11,712) 4,226 (6,692)
	(146,051) (33,177)
	- 60 (45,518) (19,910) 73,013 - (12,002) (3,369)
	15,493 (23,219)
	(57,346) 29,218 125,406 31,166 (593) 2,711
	67,467 63,095

The accompanying notes form part of these financial statements.

Page 12

Perseus Mining Limited Notes to the financial statements For the half-year ended 31 December 2019

ABOUT THIS REPORT

The interim financial statements are for the consolidated entity consisting of Perseus Mining Limited and its subsidiaries (the “group” or the “consolidated entity”). Perseus Mining Limited is a listed for-profit public company, incorporated and domiciled in Australia. During the period ended 31 December 2019, the consolidated entity conducted operations in Australia, Ghana and Côte d’Ivoire.

These consolidated interim financial statements of the consolidated entity for the period ended 31 December 2019 are general purpose condensed financial statements prepared in accordance with the requirements of the Australian Corporations Act 2001 (Cth) and AASB 134 ‘Interim Financial Reporting’.

These condensed interim financial statements do not include full disclosures of the type normally included in an annual financial report. Therefore, it cannot be expected to provide as full an understanding of the financial performance, financial position and cash flows of the group as in the annual financial report. It is recommended that these interim financial statements be read in conjunction with the annual financial report for the year ended 30 June 2019, and any public announcements made by the group during the period in accordance with continuous disclosure requirements arising under the Corporations Act 2001.

The consolidated interim financial statements are presented in Australian dollars, which is Perseus Mining Limited’s functional and presentation currency. These consolidated interim financial statements are rounded to the nearest thousand dollars ($’000), unless otherwise indicated.

New and amended standards and interpretations adopted by the group

In the period ended 31 December 2019, the group has reviewed and adopted all of the new and revised Standards and Interpretations issued by the AASB that are relevant to its operations and effective for annual reporting periods beginning on or before 1 July 2019. The accounting policies adopted in the preparation of the interim consolidated financial statements are consistent with those followed in the preparation of the group’s annual consolidated financial statements for the year ended 30 June 2019 except for the adoption of AASB 16 Leases, which is detailed at note 12 (a). As a result of this review the directors have determined that there is no other change necessary to group accounting policies.

Historical cost convention

These consolidated interim financial statements have been prepared under the historical cost convention, except for derivative instruments which are carried at fair value.

Critical accounting estimates

The preparation of financial statements requires the use of certain critical accounting estimates. It also requires management to exercise its judgement in the process of applying the group’s accounting policies. The areas involving a higher degree of judgement or complexity, or areas where assumptions and estimates are significant to the financial statements are disclosed throughout the notes.

SIGNIFICANT JUDGEMENTS AND ESTIMATES

Estimates and judgements are continually evaluated and are based on historical experience and other factors, including the expectations of future events that may have a financial impact on the consolidated entity and that are believed to be reasonable under the circumstances.

Page 13

Perseus Mining Limited Notes to the financial statements For the half-year ended 31 December 2019

The group makes estimates and assumptions concerning the future. The resulting accounting will, by definition, seldom equal the actual results. The estimates and assumptions that have a risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are discussed in the notes indicated below.

	Note
Impairment	2
Unit-of-production method of depreciation/amortisation	2
Deferred stripping expenditure	2
Income tax	3
Inventory	4
Mine properties	6
Exploration and evaluation expenditure	7
Derivative financial instruments	8
Share based payments	10
Measurement of fair value	11

1. SEGMENT INFORMATION

(a) Description of segments

Management has determined the operating segments based on the reports reviewed by the executive management team and board of directors that are used to make strategic decisions.

The group primarily reports based on a business segment basis as its risks and rates of return are affected predominantly by differences in the various business segments in which it operates, and this is the format of the information provided to the executive management team and board of directors.

The group operated principally in four segments in 2019 being Edikan, Sissingué, Yaouré and Corporate / Other. The segment information is prepared in conformity with the group’s accounting policies.

The group comprises the following main segments:

Edikan	Mining, mineral exploration, evaluation and development activities.
Sissingué	Mining, mineral exploration, evaluation and development activities.
Yaouré	Mineral exploration, evaluation and development activities.
Corporate / Other	Investing activities and corporate management.

Revenue is derived from one external customer arising from the sale of gold bullion reported under both the Edikan and Sissingué reporting segments.

(b) Segment reporting

Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision maker. The chief operating decision maker, who is responsible for allocating resources and assessing performance of the operating segments, has been identified as the executive management team and board of directors of the parent entity.

Page 14

Perseus Mining Limited Notes to the financial statements For the half-year ended 31 December 2019

1. SEGMENT INFORMATION – continued

(c) Segment information provided to the executive management team and board of directors

Revenue and other income Revenue Other income Total revenue and other income Results Operating profit before income tax Income tax (expense) / benefit Net profit after tax Included within segment results: Impairment and write-offs Depreciation and amortisation Share based payments Foreign exchange gain / (loss) Assets Segment assets Total segment assets Total assets include: Additions to non-current assets (other than financial assets) Liabilities Segment liabilities Total segment liabilities	Edikan Sissingué Yaouré Corporate / other 31 Dec 2019 31 Dec 2018 31 Dec 2019 31 Dec 2018 31 Dec 2019 31 Dec 2018 31 Dec 2019 31 Dec 2018 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000	Edikan Sissingué Yaouré Corporate / other 31 Dec 2019 31 Dec 2018 31 Dec 2019 31 Dec 2018 31 Dec 2019 31 Dec 2018 31 Dec 2019 31 Dec 2018 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000	Consolidated 31 Dec 2019 31 Dec 2018 $’000 $’000
	183,039 200,357 91,382 81,286 - - - 1,472 602 398 - - - 1,135	- 490	274,421 281,643 3,005 1,092
	184,511 200,959 91,780 81,286 - - 1,135	490	277,426 282,735
	37,021 (13,787) 10,799 6,263 5,411 (3,166) (9,907) - (59) (51) (25) (157) - - (39,297) (52,421) (37,198) (24,629) - - (1,617) (256) (329) (329) (99) - - (1,328) 985 1,145 (608) (4,009) 570 - 6,027 As at As at As at As at As at As at As at 31 Dec 2019 30 June 2019 31 Dec 2019 30 June 2019 31 Dec 201930 June 2019 31 Dec 2019 $’000 $’000 $’000 $’000 $’000 $’000 $’000	16,160 (11) (1,106) (783) 19,266 As at 30 June 2019 $’000	43,324 5,470 (12,914) 4,923
			30,410 10,393
			(208) (95) (78,112) (78,156) (1,913) (1,211) 6,974 16,402 As at As at 31 Dec 2019 30 June 2019 $’000 $’000
	424,046 428,413 185,495 241,252 395,543 227,613 46,782	72,005	1,051,866 969,283
	14,267 20,258 16,518 17,609 149,319 25,532 9 112,957 128,444 29,312 47,519 29,937 9,601 70,989	260 207	1,051,866 969,283
			180,113 63,659 243,195 185,771
			243,195 185,771

Page 15

Perseus Mining Limited Notes to the financial statements For the half-year ended 31 December 2019

2. OTHER INCOME / EXPENSES

2. OTHER INCOME / EXPENSES Foreign exchange gain: Foreign exchange gain on translation of inter-company loans Foreign exchange gain on translation of VAT receivable Foreign exchange gain / (loss) on other translations Changes in inventories of finished goods and work in progress: Write back of inventories due to increase in net realisable value Finance costs: Interest and finance charges Other costs: Write-down of receivable Depreciation and amortisation: Amortisation of stripping asset Other depreciation and amortisation	Consolidated Six months ended 31 Dec 2019 31 Dec 2018 $’000 $’000 1,637 17,595 411 223 4,926 (1,416)
	6,974 16,402
	17,406 430 (2,502) (3,357) (126) (285) (13,250) (15,435) (64,862) (62,721)
	(78,112) (78,156)

SIGNIFICANT JUDGEMENTS AND ESTIMATES

(i) Impairment of assets

Intangible assets that have an indefinite useful life are not subject to amortisation and are tested annually for impairment or more frequently if events or changes in circumstances indicate that they may be impaired. Other assets are tested for impairment whenever events or changes in circumstances indicate that the carrying amount exceeds its recoverable amount. If any such indication exists, the recoverable amount of the asset is estimated to determine the extent of the impairment loss (if any) which is the amount by which the assets carrying value exceeds its recoverable amount. At 31 December 2019 the group determined that there were no external indicators of impairment as the carrying value of its net assets was below its market capitalisation and furthermore, no other technical indicators of impairment were identified.

(ii) Unit-of-production method of depreciation / amortisation

The group uses the unit-of-production basis when depreciating/amortising life of mine specific assets, which results in a depreciation/amortisation charge proportional to the depletion of the anticipated remaining life of mine production. Each item’s economic life, which is assessed annually, has due regard to both its physical life limitations and to present assessments of economically recoverable reserves of the mine property at which it is located. These calculations require the use of estimates and assumptions, including the amount of recoverable reserves and estimates of future capital expenditure. The group amortises mine property assets utilising tonnes of ore mined and mine related plant and equipment over tonnes of ore processed.

(iii) Deferred stripping expenditure

The group defers stripping costs incurred during the production stage of its operations. Significant judgement is required to distinguish between production stripping that relates to the extraction of inventory and what relates to the creation of a deferred waste asset. The group also identifies the separate components of the ore body. An identifiable component is a specific volume of the ore body that is made more accessible by the stripping activity. Significant judgement is required to identify these components, and to determine the expected volumes of waste to be stripped and ore to be mined in each component and a suitable production measure to be used to allocate production stripping costs between inventory and any stripping activity asset(s) for each component. The group considers that the ratio of the expected waste to be stripped for an expected amount of ore to be mined, for a specific component of the ore body, is the most suitable production measure.

Page 16

Perseus Mining Limited Notes to the financial statements For the half-year ended 31 December 2019

SIGNIFICANT JUDGEMENTS AND ESTIMATES – continued

2. OTHER INCOME / EXPENSES – continued

Furthermore, judgements and estimates are also used to apply the units of production method in determining the amortisation of the stripping activity asset(s).

(iii) Deferred stripping expenditure - continued

Changes in a mine’s life and design will usually result in changes to the expected stripping ratio (waste to mineral reserves ratio). Changes in other technical or economical parameters that impact reserves will also have an impact on the life of component ratio even if they do not affect the mine’s design. Changes to the life of the component are accounted for prospectively.

3. INCOME TAX (EXPENSE) / BENEFIT

The income tax expense that has been recognised in the statement of comprehensive income comprises $12.9 million (31 December 2018 income tax benefit: $4.9 million), fully relating to the EGM taxable profit in the current period.

SIGNIFICANT JUDGEMENTS AND ESTIMATES

Judgement is required in determining whether deferred tax assets are recognised on the statement of financial position. Deferred tax assets, including those arising from un-utilised tax losses, require management to assess the likelihood that the group will generate taxable earnings in future periods, in order to utilise recognised deferred tax assets. Estimates of future taxable income are based on forecast cash flows from operations and the application of existing tax laws in each jurisdiction. To the extent that future cash flows and taxable income differ significantly from estimates, the ability of the group to realise the net deferred tax assets recorded at the reporting date could be impacted.

Additionally, future changes in tax laws in jurisdictions in which the group operates could limit the ability of the group to obtain tax deductions in future periods.

4. INVENTORIES

4. INVENTORIES Current Ore stockpiles – at cost Ore stockpiles – at net realisable value Gold in circuit – at cost Gold in circuit – at net realisable value Bullion on hand – at cost Bullion on hand – at net realisable value Materials and supplies	Consolidated 31 Dec 2019 30 June 2019 $’000 $’000 7,616 - 14,565 35,768 9,991 3,313 - 6,922 38,220 12,957 - 20,578 51,188 47,361
	121,580 126,899

Inventory expense

The inventory expense during the six-month period ended 31 December 2019 was $219.9 million (30 June 2019: $477.5 million). A write back of inventories due to an increase in net realisable value recognised during the period ended 31 December 2019 amounted to $17.4 million (30 June 2019: $13.6 million) and is included in ‘cost of sales’ in the statement of comprehensive income.

Non-current Ore stockpiles – at net realisable value	Consolidated 31 Dec 2019 30 June 2019 $’000 $’000 55,407 24,325
	55,407 24,325

Page 17

Perseus Mining Limited Notes to the financial statements For the half-year ended 31 December 2019

4. INVENTORIES (continued)

SIGNIFICANT JUDGEMENTS AND ESTIMATES

Net realisable value tests are performed at least quarterly and represent the estimated future sales price of the product based on prevailing spot metals prices at the reporting date, less estimated costs to complete production and bring the product to sale. Stockpiles are measured by estimating the number of tonnes added and removed from the stockpile, the number of contained gold ounces based on assay data, and the estimated recovery percentage based on the expected processing method. Stockpile tonnages are verified by periodic surveys.

5. PROPERTY, PLANT AND EQUIPMENT

Plant and equipment - at cost Accumulated depreciation Reconciliation of plant and equipment: Balance at the beginning of the period Additions Transferred from assets under construction Depreciation Disposals Translation difference movement Carrying amount at the end of the period Assets under construction – at cost Reconciliation of assets under construction: Balance at the beginning of the period Additions Transferred to property, plant and equipment Transferred to mine properties Transferred from exploration Written off Translation difference movement Carrying amount at the end of the period Total property, plant and equipment net book value	Consolidated 31 Dec 2019 30 June 2019 $’000 $’000 359,290 360,003 (215,555) (187,793)
	143,735 172,210
	172,210 214,790 1,067 885 - 3,078 (29,216) (53,409) - (877) (326) 7,743
	143,735 172,210
	407,926 246,502 246,502 202,532 164,004 39,101 - (3,078) - (3,663) - 2,320 (156) - (2,424) 9,290 407,926 246,502 551,661 418,712

Page 18

Perseus Mining Limited Notes to the financial statements For the half-year ended 31 December 2019

6. MINE PROPERTIES

. MINE PROPERTIES
Mine properties - at cost Accumulated depreciation Reconciliation of mine properties: Balance at the beginning of the period Additions Transferred from assets under construction Amortisation Translation difference movement Carrying amount at the end of the period	Consolidated 31 Dec 2019 30 June 2019 $’000 $’000 635,557 626,494 (442,257) (393,733)
	193,300 232,761
	232,761 304,132 10,123 13,975 - 3,663 (49,187) (101,200) (397) 12,191
	193,300 232,761

SIGNIFICANT JUDGEMENTS AND ESTIMATES

Ore reserves are estimates of the amount of ore that can be economically and legally extracted from the group’s mining properties. The group estimates its Ore Reserves and Mineral Resources based on information compiled by appropriately qualified persons relating to the geological data on the size, depth and shape of the ore body and this requires complex geological judgements to interpret data. The estimation of recoverable reserves is based upon factors such as estimates of foreign exchange rates, commodity prices, future capital requirements, and production costs along with geological assumptions and judgements made in estimating the size and grade of the ore body. Changes in the reserve or resource estimates may impact upon the carrying value of exploration and evaluation assets, mine properties, property, plant and equipment, goodwill, provision for rehabilitation, recognition of deferred assets, and depreciation and amortisation charges.

7. MINERAL INTEREST ACQUISITION AND EXPLORATION EXPENDITURE

7. MINERAL INTEREST ACQUISITION AND EXPLORATION EXPENDITURE
Mineral interest acquisition and exploration – at cost Reconciliation: Balance at the beginning of the period Additions Transferred to assets under construction Exploration costs written off Translation difference movement Carrying amount at the end of the period	Consolidated 31 Dec 2019 30 June 2019 $’000 $’000 22,306 17,405
	17,405 9,607 5,076 9,699 - (2,320) (51) (144) (124) 563
	22,306 17,405

Page 19

Perseus Mining Limited Notes to the financial statements For the half-year ended 31 December 2019

7. MINERAL INTEREST ACQUISITION AND EXPLORATION EXPENDITURE - continued

The expenditure above relates principally to exploration and evaluation activities. The ultimate recoupment of this expenditure is dependent upon successful development and commercial exploitation, or alternatively, sale of the respective areas of interest. The write-off of $51,000 in the current period was mainly attributable to the non-discovery of commercially viable deposits in regional Côte d'Ivoire.

SIGNIFICANT JUDGEMENTS AND ESTIMATES

Management determines when an area of interest should be abandoned. When a decision is made that an area of interest is not commercially viable, all costs that have been capitalised in respect of that area of interest are written off. In determining this, assumptions, including the maintenance of title, ongoing expenditure and prospectivity are made.

8. DERIVATIVE FINANCIAL INSTRUMENTS

8. DERIVATIVE FINANCIAL INSTRUMENTS
Current liabilities Cash flow hedge liability Non-current liabilities Cash flow hedge liability	Consolidated 31 Dec 2019 30 June 2019 $’000 $’000 6,533 8,508
	6,533 8,508
	- 1,603
	- 1,603

The group is party to derivative financial instruments in the normal course of business in order to hedge exposure to future price and currency fluctuations in the primary commodity markets in which it operates. This is done in accordance with the group's financial risk management policies.

Forward metal contracts – cash flow hedges

The group uses cash flow designated USD forward metal contracts to hedge movements in USD precious metal prices on its anticipated sales of gold. At 31 December 2019 there were cash flow designated hedge contracts in place for 20,000 ounces of gold with settlements scheduled between March 2020 and September 2020 with a weighted average price of US$1,300.50/oz. The portion of the gain or loss on these hedging instruments that are determined to be an effective hedge are recognised and retained directly in equity. The ineffective portion will be recognised in the statement of comprehensive income.

The amount reclassified during the period to revenue in the income statement was a loss of $10.7 million (30 June 2019 gain: $5.5 million).

Sales contracts

At 31 December 2019, the group held spot deferred sales contracts and forward sales contracts for a further 256,046 ounces of gold at an average sales price of US$1,352.04 per ounce.

It is management’s intention to settle each contract through physical delivery of gold and as such, the spot deferred sale contracts and forward sales contracts do not meet the criteria of financial instruments for accounting purposes. This is referred to as the “own use” exemption. Accordingly, the contracts will be accounted for as sale contracts with revenue recognised once the gold has been delivered.

Page 20

Perseus Mining Limited Notes to the financial statements For the half-year ended 31 December 2019

8. DERIVATIVE FINANCIAL INSTRUMENTS – continued

SIGNIFICANT JUDGEMENTS AND ESTIMATES

The group makes judgements on the effectiveness of all derivative financial instrument entered into, including forward metal contracts, metal options and foreign currency option contracts in accordance with the above accounting policy. Management’s assessment is that, unless otherwise disclosed, the derivatives have been highly effective in offsetting changes in the fair value of the future cash flows against which they have been designated.

9. INTEREST BEARING LIABILITIES

9. INTEREST BEARING LIABILITIES
Current Interest-bearing loan facility (i) Non-current Interest-bearing loan facility (i)	Consolidated 31 Dec 2019 30 June 2019 $’000 $’000 - 7,831
	-	7,831
	71,286	36,996
	71,286	36,996

• (i) During the period, the US$30 million revolving line of credit that was available to the Company’s Ghanaian subsidiary and the US$40 million debt facility that funded the Sissingué project were fully repaid and substituted with a US$150 million revolving corporate cash advance facility. This is a secured facility provided by a consortium of three international banks comprising of Macquarie Bank Limited from Australia, Nedbank Limited (acting through its Nedbank Corporate and Investment Banking Division) from South Africa and Société Générale of France. The amount outstanding on the facility was US$50 million as at 31 December 2019 and funds from the drawdowns were used to settle the superseded loan facilities as well as progress the development of Yaouré.

Assets pledged as security

The revolving corporate cash advance facility is secured over the following assets:

• all of the assets of Perseus Mining Ltd and Occidental Gold Pty Ltd;

• Kojina Resources Ltd’s shares held in Perseus Mining Ghana Ltd (PMGL);

• all assets of Amara Mining Ltd, Amara Mining (Côte d’Ivoire) Ltd and Perseus Côte d’Ivoire Ltd; and

• refining agreements of PMGL, Perseus Mining Côte d'Ivoire SA (“PMCI”) and Perseus Mining Yaouré SA (PMY).

Page 21

Perseus Mining Limited Notes to the financial statements For the half-year ended 31 December 2019

10. ISSUED CAPITAL AND RESERVES

• (a) Issued and paid-up share capital

(a) Issued and paid-up share capital				Consolidated	Consolidated
				31 Dec 2019	31	Dec 2018
				$’000		$’000
1,167,980,480 (31 December 2018: 1,034,968,530) ordinary shares, fully paid				776,564		721,003
		Consolidated
	31 Dec 2019			31 Dec	2018
	$’000	Number		$’000		Number
Balance at the beginning of the period	776,564	1,167,447,147		720,943	1,034,826,432
Share placement at issue price of $0.44 pursuant to
the exercise of warrants	-		-	60		142,098
Shares placement pursuant to the exercise of
performance rights	-	533,333		-		-
Balance at the end of the period	776,564	1,167,980,480		721,003	1,034,968,530

(b) Performance rights

Performance rights have been granted as follows:

Grant date End of measurement period Expiry date Exercise price	Balance at start of the period Granted during the period Exercised during the period Forfeited during the period Balance at the end of the period Vested and exercisable at end of the period Number Number Number Number Number Number
12-Oct-16 30-Jun-19 31-Dec-19 Nil 25-Nov-16 30-Jun-19 30-Jun-26 Nil 3-Aug-17 30-Jun-20 31-Dec-20 Nil 24-Nov-17 30-Jun-20 31-Dec-20 Nil 28-Nov-18 31-Dec-21 31-Dec-28 Nil 7-May-19 31-Dec-21 31-Dec-28 Nil 27-Jun-19 31-Dec-21 31-Dec-28 Nil 26-Sep-19 30-Jun-22 30-Jun-29 Nil 29-Nov-19 30-Jun-22 30-Jun-29 Nil	333,333 - (333,333) - - - 533,333 - (200,000) - 333,333 333,333 8,358,334 - - (200,000) 8,158,334 - 2,233,334 - - - 2,233,334 - 733,333 - - - 733,333 - 6,758,333 - - - 6,758,333 - 5,000,000 - - (300,000) 4,700,000 - - 9,858,700 - - 9,858,700 - - 1,346,500 - - 1,346,500 -
	23,950,000 11,205,200 (533,333) (500,000) 34,121,867 333,333

SIGNIFICANT JUDGEMENTS AND ESTIMATES

The consolidated entity measures the cost of equity-settled transactions with employees and consultants by reference to the fair value of the equity instruments at the date at which they were granted. The fair value of performance rights granted is determined using a Monte Carlo simulation model.

(c) Ordinary shares

Ordinary shares entitle the holder to participate in dividends as declared and, in the event of winding up of the company, to participate in the proceeds from the sale of all surplus assets in proportion to the number of and amounts paid up on shares held. Ordinary shares entitle their holder to one vote, either in person or by proxy, at a meeting of the company.

(d) Nature and purpose of reserves

A summary of the transactions impacting each reserve has been disclosed in the statement of changes in equity.

Share-based payments reserve

The share-based payments reserve is used to record performance rights issued but not exercised.

Page 22

Perseus Mining Limited Notes to the financial statements For the half-year ended 31 December 2019

10. ISSUED CAPITAL AND RESERVES – continued

Foreign currency translation reserve

The foreign currency translation reserve comprises all foreign exchange differences arising from the translation of the financial statements of foreign operations where their functional currency is different to the presentation currency of the reporting entity along with Perseus’s share of the movement in its associate’s foreign currency translation reserve.

Non-controlling interest’s reserve

The non-controlling interest’s reserve records the difference between the fair value of the amount by which the noncontrolling interests were adjusted to record their initial relative interest and the consideration paid.

Hedge reserve

The hedging reserve comprises the effective portion of the cumulative net change in the fair value of cash flow hedges related to hedged transactions that have not yet occurred.

Asset revaluation reserve

The asset revaluation reserve is used to record the revaluation of the investment in Manas Resources Limited and Amani Gold Limited to fair value as the investment is designated as financial assets at fair value through other comprehensive income.

11. FAIR VALUE OF FINANCIAL INSTRUMENTS

All financial instruments for which fair value is recognised or disclosed are categorised within the fair value hierarchy, described as follows, and based on the lowest level input that is significant to the fair value measurement as a whole:

• Level 1 Quoted market prices in an active market (that are unadjusted) for identical assets or liabilities Level 2 Valuation techniques (for which the lowest level input that is significant to the fair value measurement is directly or indirectly observable)

• Level 3 Valuation techniques (for which the lowest level input that is significant to the fair value measurement is unobservable)

For financial instruments that are recognised at fair value on a recurring basis, the group determines whether transfers have occurred between levels in the hierarchy by re-assessing categorisation (based on the lowest level input that is significant to the fair value measurement as a whole) at the end of each reporting period.

There were no transfers between categories during the period.

SIGNIFICANT JUDGEMENTS AND ESTIMATES

Measurement of fair values

When the fair values of financial assets and financial liabilities recorded in the statement of financial position cannot be measured based on quoted prices in active markets, their fair value is measured using valuation techniques. The inputs to these models are taken from observable markets where possible, but where this is not feasible, a degree of judgement is required in establishing fair values. Judgements include considerations of inputs such as liquidity risk, credit risk and volatility. Changes in assumptions about these factors could affect the reported fair value of financial instruments.

Page 23

Perseus Mining Limited Notes to the financial statements For the half-year ended 31 December 2019

12. CHANGE IN ACCOUNTING POLICIES AND DISCLOSURES

(a) New and amended standards and interpretations

AASB 16 Leases

The adoption of AASB 16 resulted in the Group recognising a right-of-use asset of $2.8 million and related lease liability of $2.8 million at 1 July 2019 in connection with all former operating leases except for those having a remaining lease term of less than 12 months from the date of initial application. The lease liabilities were measured at the present value of the remaining lease payments, discounted using the lessee’s incremental borrowing rates as at 1 July 2019. The new Standard has been applied using the modified retrospective approach. Prior periods have not been restated.

The Group has elected not to include initial direct costs in the measurement of the right-of-use asset for operating leases in existence at the date of initial application of IFRS 16. The Group has also elected to measure the right-of-use assets at an amount equal to the lease liability adjusted for any prepaid or accrued lease payments that existed at the date of transition. Instead of performing an impairment review on the right-of-use assets at the date of initial application, the Group has relied on its historic assessment as to whether leases were onerous immediately before the date of initial application of AASB 16.

On transition, for leases previously accounted for as operating leases with a remaining lease term of less than 12 months and for leases of low-value assets, the Group has applied the optional exemptions to not recognise right-of-use assets but to account for the lease expense on a straight-line basis over the remaining lease term.

When the Group has the option to extend a lease, management uses its judgement to determine whether or not an option would be reasonably certain to be exercised. Management considers all facts and circumstances including their past practice and any cost that will be incurred to change the asset if an option to extend is not taken, to help them determine the lease term.

Depending on the location of the leased asset and lease term, the following incremental borrowing rates were applied to lease liabilities recognised under AASB 16:

Country / Lease Term Australia Côte d’Ivoire Ghana	1 Year 2 Years 3 Years 4 Years 5 Years
	7.69% 7.64% 8.03% 8.18% 8.33% 13.50% 13.46% 13.85% 14.04% 14.25% 13.50% 13.46% 13.85% 14.04% 14.25%

The carrying values of the right of use assets and lease liability at 31 December 2019 are set out in the table below:

Assets Right of use assets – buildings Right of use assets – plant and equipment Liabilities Lease liability – current Lease liability – non-current	31 Dec 2019 $’000 1,147 1,216
	2,363
	1,281 939
	2,220

The right of use assets as at 31 December 2019 is mainly comprised of properties located in Australia, Côte d’Ivoire and Ghana, as well as fuel stations in Côte d’Ivoire and Ghana.

(b) Changes in accounting policies

There have been no other changes in accounting policies during the period ended 31 December 2019.

Page 24

Perseus Mining Limited Notes to the financial statements For the half-year ended 31 December 2019

13. CONTINGENCIES

There were no other known contingent liabilities since the annual financial report for the period ended 31 December 2019.

14. COMMITMENTS

Commitments disclosed in the Group’s 30 June 2019 annual report have not changed except the following.

Gold delivery commitments

Gold delivery commitments
	Gold for physical	Contracted sales	Value of committed
	delivery	price	sales
	oz	US$ /oz	$’000
Within one year	118,757	1,402	166,497
Later than one but not later than fiveyears	137,289	1,309	179,711

At 31 December 2019, the group held spot deferred sales contracts and forward sales contracts for 256,046 ounces of gold at an average sales price of US$1,352.04 per ounce. The contracts will be rolled out from 2020 to 2022 and represent 24% of anticipated gold production over the period.

The counterparties to the physical gold delivery contracts are Macquarie Bank and Nedbank Limited. Contracts are settled by the physical delivery of gold as per the contract terms. The contracts are accounted for as sale contracts with revenue recognised once gold has been delivered to the scheduled counterparties. The physical gold delivery contracts are considered a contract to sell a non-financial item and therefore do not fall within the scope of AASB 9 financial Instruments: Recognition and Measurement. Hence, no derivatives are recognised. The contracted sales price is rounded to the nearest dollar.

Capital commitments

Capital expenditure contracted for at the end of the reporting period but not recognised as liabilities is as follows:

	31	Dec 2019	30 Jun 2019
		$’000	$’000
Property, plant and equipment		11,529	-

The above commitments relate to contractual commitments for the purchase of property, plant and equipment for Yaouré.

15. EVENTS OCCURING AFTER THE END OF THE REPORTING PERIOD

Since the end of the period and to the date of this report, no matter or circumstance has arisen that has significantly affected, or may significantly affect, the operations of the consolidated entity, the results of those operations or the state of affairs of the consolidated entity in subsequent financial periods.

Page 25

Perseus Mining Limited Directors’ declaration 31 December 2019

DIRECTORS’ DECLARATION

In the opinion of the directors of Perseus Mining Limited (the ‘Company’):

• (a) The accompanying financial statements and notes are in accordance with the Corporations Act 2001 including:

• (i) giving a true and fair view of the consolidated entity’s financial position as at 31 December 2019 and of its performance for the half-year then ended; and

• (ii) complying with Accounting Standard AASB 134 Interim Financial Reporting and the Corporations Regulations 2001 ; and

• (b) There are reasonable grounds to believe that the Company will be able to pay its debts as and when they become due and payable.

Pursuant to s.303(5) of the Corporations Act 2001, this declaration is signed in accordance with a resolution of the Board of Directors.

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J A Quartermaine Managing Director and Chief Executive Officer

Dated at Perth, 19 February 2020

Page 26

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Independent auditor's review report to the members of Perseus Mining Limited

Report on the half-year financial report

We have reviewed the accompanying half-year financial report of Perseus Mining Limited (the Company) and the entities it controlled during the half-year (together the Group), which comprises the statement of financial position as at 31 December 2019, the statement of comprehensive income, statement of changes in equity and statement of cash flows for the half-year ended on that date, selected other explanatory notes and the directors' declaration.

Directors' responsibility for the half-year financial report

The directors of the Company are responsible for the preparation of the half-year financial report that gives a true and fair view in accordance with Australian Accounting Standards and the Corporations Act 2001 and for such internal control as the directors determine is necessary to enable the preparation of the half-year financial report that gives a true and fair view and is free from material misstatement whether due to fraud or error.

Auditor's responsibility

Our responsibility is to express a conclusion on the half-year financial report based on our review. We conducted our review in accordance with Australian Auditing Standard on Review Engagements ASRE 2410 Review of a Financial Report Performed by the Independent Auditor of the Entity , in order to state whether, on the basis of the procedures described, we have become aware of any matter that makes us believe that the half-year financial report is not in accordance with the Corporations Act 2001 including giving a true and fair view of the Group's financial position as at 31 December 2019 and its performance for the half-year ended on that date; and complying with Accounting Standard AASB 134 Interim Financial Reporting and the Corporations Regulations 2001 . As the auditor of Perseus Mining Limited, ASRE 2410 requires that we comply with the ethical requirements relevant to the audit of the annual financial report.

A review of a half-year financial report consists of making enquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with Australian Auditing Standards and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Independence

In conducting our review, we have complied with the independence requirements of the Corporations Act 2001 .

PricewaterhouseCoopers, ABN 52 780 433 757 Brookfield Place, 125 St Georges Terrace, PERTH WA 6000, GPO Box D198, PERTH WA 6840 T: +61 8 9238 3000, F: +61 8 9238 3999, www.pwc.com.au

Liability limited by a scheme approved under Professional Standards Legislation.

Page 27

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Conclusion

Based on our review, which is not an audit, we have not become aware of any matter that makes us believe that the half-year financial report of Perseus Mining Limited is not in accordance with the Corporations Act 2001 including:

1. giving a true and fair view of the Group's financial position as at 31 December 2019 and of its performance for the half-year ended on that date;

2. complying with Accounting Standard AASB 134 Interim Financial Reporting and the Corporations Regulations 2001 .

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PricewaterhouseCoopers

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Craig Heatley Partner

Perth 19 February 2020

Page 28