PERSEUS MINING LIMITED — Interim / Quarterly Report 2021

Feb 23, 2021

==> picture [452 x 127] intentionally omitted <==

Interim Financial Report

For the half year ended

31 December 2020

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

Perseus Mining Limited ABN 27 106 808 986

Contents

Perseus Mining Limited

31 December 2020

Contents

Perseus Mining Limited Contents	Contents
	Page
Appendix 4D	1
Corporate Directory	2
Directors’ Report	3
Interim Financial Statements	9
Directors’ Declaration	24
Independent Auditor’s Review Report	25

Perseus Mining Limited

Appendix 4D

31 December 2020

Appendix 4D

Issued under ASX Listing Rule 4.2A.3

Results for announcement to the market

		6 months to		6 months to
		31 Dec 2019		31 Dec 2020
		$’000		$’000
Revenue from ordinary activities	Up 4.5%	274,421	to	286,678
Profit after tax from ordinary activities	Up 61.4%	30,410	to	49,086
Profit after tax attributable to members	Up 21.3%	29,813	to	36,149

Commentary on results

See commentary on results in the Directors’ report on pages 3-7.

Dividends

No dividend was paid or declared for the period ended 31 December 2020.

Net tangible assets per share

			at	31 Dec 2019	at 31 Dec 2020
Net tangible assets per ordinary share	Up	4.5%		$0.67	$0.70

Group structure changes

During the half-year, the group acquired Exore Resources Limited. Refer to Note 13 of the Interim financial statements for further details.

In addition, the group newly incorporated Perseus Mali Holdings Pty Ltd on 2 December 2020.

1

Corporate Directory

Perseus Mining Limited

31 December 2020

Corporate Directory

Directors Terence Sean Harvey Non-Executive Chairman Jeffrey Allan Quartermaine Managing Director & Chief Executive Officer Elissa Sarah Brown Non-Executive Director Daniel Richard Lougher Non-Executive Director John Francis Gerald McGloin Non-Executive Director David Meldrum Ransom Non-Executive Director Company Martijn Paul Bosboom secretary Registered and Level 2, 437 Roberts Road corporate office SUBIACO, WESTERN AUSTRALIA 6008 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 II Plateaux - Vallons office Rue J75/J44 Lot 1438 ilot 145 06 BP 1958 Abidjan 06, Côte d’Ivoire Telephone: (225) 22 41 9126 Facsimile: (225) 22 41 9125 Share registry Computershare Investor Services Pty Ltd Computershare Investor Services Inc. Level 11, 172 St Georges Terrace Level 3, 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 Australian Securities Exchange ASX: PRU listings Toronto Stock Exchange TSX: PRU Frankfurt Stock Exchange WKN: A0B7MN

2

Perseus Mining Limited

31 December 2020

Directors’ Report

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 2020 (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:

Mr Terence Sean Harvey	Non-Executive Chairman
Mr Jeffrey Allan Quartermaine	Managing Director and Chief Executive Officer
Ms Elissa Sarah Brown_(appointed 27 Nov 2020)_	Non-Executive Director
Mr Daniel Richard Lougher	Non-Executive Director
Mr John Francis Gerald McGloin	Non-Executive Director
Mr David Meldrum Ransom	Non-Executive Director

Ms Sally-Anne Georgina Layman resigned as a Non-Executive Director effective 30 September 2020.

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.

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.

Review of Operations

Financial Results

The group’s net profit after tax for the period ended 31 December 2020, after bringing to account a foreign exchange loss, was $49.086million (31 December 2019: $30.410million). Gross profit from operations for the period ended 31 December 2020 was up significantly from the comparative period to $80.473million (31 December 2019: $47.822million), due to a combination of higher grades mined at Sissingué, and a reduced amortisation and depreciation charge as a result of lower ore tonnes mined at both Edikan and Sissingué.

The foreign exchange loss of $13.218million in the current period compares to a gain of $6.974million in the comparative period. This is a result of a strengthening by approximately 11% of the Australian dollar against the United States dollar during the 6 months. Further information on the group’s results can be found in the Statement of Comprehensive Income on page 10.

Financial Position

As at 31 December 2020, Perseus had on-hand cash of $120.5 million, and 13,350oz of gold bullion valued at $32.7 million. During the period Perseus repaid US$20 million of the revolving corporate cash advance facility (Corporate Facility), with a remaining balance on that facility of US$130 million at 31 December 2020.

3

Perseus Mining Limited

31 December 2020

Directors’ Report

Review of Operations (continued)

Sissingué Gold Mine—Côte d’Ivoire

The SGM is a producing gold mine 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 gold mine in Côte d’Ivoire. The group owns an 86% interest in the SGM, with a 10% 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 2020 and the corresponding period in 2019 were as follows.

2019 were as follows.
Parameter		Unit	6 months to 31 Dec 2020		6 months to 31 Dec 2019
Total ore and waste mined	kt			1,979		3,338
Ore mined	kt			848		1,153
Ore milled	kt			665		895
Milled head grade	g/t	gold		2.78		1.57
Gold recovery	%			94		94
Gold produced	ounces			55,909		42,642
All-in site costs	US$/oz			643		750

A total of 1,979k tonnes of ore and waste were mined during the period, including 107k tonnes of oxide ore at 0.93g/t gold and 741k tonnes of fresh/transitional ore at 2.64g/t gold. Ore stockpiles (including both high and low-grade ore but not mineralised waste) plus crushed ore increased to 840k tonnes grading 1.51 g/t containing approximately 40,759 oz of gold during the six months to 31 December 2020. This stockpile is comprised of approximately 76% fresh ore and 24% oxide ore.

Total mill throughput for the period was 665k tonnes of ore grading 2.78g/t of gold, which combined with a gold recovery rate of 94.2% resulted in the recovery of 55,909 ounces of gold. A total of 47,116 ounces of gold were sold at a weighted average price of US$1,695/oz. The 55,909 ounces of gold were produced at an AISC of US$643/oz. The 14% decrease in AISC from the comparative period is mostly the result of a substantial increase in head grade and therefore a larger number of gold ounces produced. The increase in grade was due to mining higher grade areas within the Sissingué Pit, whereas the comparative period mined some lower grade ore from the Boribana Pit.

4

Perseus Mining Limited

31 December 2020

Directors’ Report

Review of Operations (continued)

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.

Operations

Operating results at the EGM for the six months to 31 December 2020 and the corresponding period in 2019 were as follows:

2019 were as follows:
Parameter		Unit	6 months to 31 Dec 2020		6 months to 31 Dec 2019
Total ore and waste mined	kt			14,534		12,636
Ore mined	kt			1,868		3,121
Ore milled	kt			3,422		3,577
Milled head grade	g/t	gold		0.95		0.94
Gold recovery	%			75		85
Gold produced	ounces			78,790		92,338
All-in site costs	US$/oz			1,253		1,031

A total of 14,534k tonnes of ore and waste were mined during the period from the AF Gap, Bokitsi and Fetish pits, all of which was fresh/transitional ore at 1.17 g/t gold. Ore stockpiles (including both high and low-grade ore but not mineralised waste) plus crushed ore decreased to 3,972k tonnes grading 0.67 g/t containing approximately 85,514 oz of gold during the six months to 31 December 2020. This stockpile is comprised of approximately 15% oxide ore and 85% primary ore.

Total mill throughput for the period was 3,422k tonnes of ore grading 0.95 g/t of gold, which combined with a gold recovery rate of 75% resulted in the recovery of 78,790 ounces of gold. A total of 79,969 ounces of gold were sold at a weighted average price of US$1,612/oz.

The 78,790 ounces of gold were produced at an AISC of US$1,253/oz. The 15% decrease in gold production from 92,338 ounces in the corresponding period was a result of lower recovery rates, primarily caused by the feeding of ore from the Bokitsi pit. The 22% increase in AISC from the comparative period is mostly the result of lower recovery rates achieved, again due to lower recoveries achieved from ore fed from the Bokitsi pit. A more minor reason for the increase were higher royalty payments per ounce, as a result of the improved gold price achieved.

5

Perseus Mining Limited

31 December 2020

Directors’ Report

Review of Operations (continued)

Yaouré Gold Mine—Côte d’Ivoire

Yaouré is a producing gold mine 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 mine site.

Processing Development

Substantial progress was made on the construction of the processing plant and associated infrastructure during the period. Critical milestones that were met include: the establishment of a permanent electricity connection to the nearby Kossou hydro-electric dam; the completion of the Tailings Storage Facility; the feeding of first ore through the mill; culminating in pouring of first gold at Yaouré on 17 December 2020, 5 weeks ahead of schedule and consistent with its stretch target of December 2020 for first gold. Practical Completion of the Plant and associated infrastructure was achieved in early January 2021.

Shortly after the first gold pour, commissioning activities were temporarily suspended due to water damage to the SAG Mill’s VSD transformer. As a result of this setback to the commissioning process, the plant’s flow sheet was reconfigured to enable the soft, oxide ore being fed to the mill for commissioning purposes to be processed using only the SAG Mill, rather than the SAG and Ball Mills in combination.

Mining

Perseus’s mining contractor, EPSA Internacional, S.A., continued to progressively ramp up its mining operations during the period, building up its mining fleet to full capacity, establishing administration and maintenance facilities, recruiting and training employees, and commencing mining in the CMA and ROM SE (decommissioned heap leach pads) pits. Mining operations have gone well and as at 31 December 2020, total material movements were approximately 26% ahead of targets, generating the possibility of earlier than planned access to significantly higher grade fresh ore.

Performance statistics

Physical data for the six months to 31 December 2020 were as follows:

Parameter		Unit	6 months to 31 Dec 2020
Total ore and waste mined	kt		6,449
Ore mined	kt		128
Ore milled	kt		123
Milled head grade	g/t	gold	1.01
Gold recovery	%		68
Gold produced	ounces		2,687

6

Perseus Mining Limited

31 December 2020

Directors’ Report

Rounding of amounts

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 2020.

Subsequent events

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.

This report was signed in accordance with a resolution of the directors.

==> picture [99 x 46] intentionally omitted <==

Jeffrey Allan Quartermaine Managing Director and Chief Executive Officer Perth, 23 February 2021

7

==> picture [77 x 59] intentionally omitted <==

Auditor’s Independence Declaration

As lead auditor for the review of Perseus Mining Limited for the half-year ended 31 December 2020, 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.

==> picture [119 x 49] intentionally omitted <==

Craig Heatley Partner PricewaterhouseCoopers

Perth 23 February 2021

Liability limited by a scheme approved under Professional Standards Legislation.

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

8

Interim Financial Statements

Perseus Mining Limited

31 December 2020

Interim Financial Statements

Contents

Contents
	Page
Statement of comprehensive income	10
Statement of financial position	11
Statement of changes in equity	12
Statement of cash flows	13
Notes to the financial statements	14-23

Table of Notes to the financial statements

• Operating assets and Capital and financial

• Performance Unrecognised items liabilities risk management

• 1. Segment information 4. Inventories 9. Derivative financial 14. Contingencies instruments
• 1. Other income/ 5. Receivables 15. Commitments expenses 10. Interest-bearing 6. Property, plant, and liabilities 16. Subsequent events
• 1. Income tax equipment 11. Issued capital and
• 1. Mine properties reserves 8. Mineral interest 12. Fair value of acquisition and financial instruments exploration expenditure 13. Acquisition of Exore Resources Limited

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 disclosed on page 2.

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 8, which is not part of these interim financial statements.

These interim financial statements were authorised for issue by the directors on 23 February 2021. 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.

9

Interim Financial Statements

Perseus Mining Limited

31 December 2020

Statement of comprehensive income

Note Profit and loss from 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 2 Other expenses Administration and other corporate expenses Foreign exchange (loss)/gain 2 Other depreciation and amortisation expense 2 Write-downs and impairments 8 Finance costs Profit before tax Income tax (expense) 3 Profit Other comprehensive income Items that will not be reclassified to profit and loss Fair value movement on equity investments Income tax on this item Items that will or may be reclassified to profit and loss Exchange differences on translation of foreign operations Net Changes in the fair value of cash flow hedges Income tax on these items Total comprehensive income	For the half-year ending: 31 Dec 2020 31 Dec 2019 $’000 $’000 286,678 274,421 (160,811) (148,668)
	125,867 125,753 (45,394) (77,931)
	80,473 47,822 706 3,005 — (126) (8,321) (11,460) (13,218) 6,974 (113) (181) (334) (208) (1,747) (2,502)
	57,446 43,324 (8,360) (12,914)
	49,086 30,410
	84 (51) — — (34,703) (11,328) 6,698 2,255 (150) (1,505)
	21,015 19,781
Profit is attributable to: Owners of Perseus Mining Limited Non-controlling interests	36,149 29,813 12,937 597
	49,086 30,410
Total comprehensive income is attributable to: Owners of Perseus Mining Limited Non-controlling interests	10,031 17,061 10,984 2,720
	21,015 19,781
Basic earnings per share	3.01 cents 2.55 cents 2.94 cents 2.50 cents
Diluted earnings per share

10

Interim Financial Statements

Perseus Mining Limited

31 December 2020

Statement of financial position

Note Current assets Cash and cash equivalents Receivables 5 Inventories 4 Prepayments Income tax receivable Non-current assets Receivables 5 Inventories 4 Equity investments Property, plant, and equipment 6 Right of use assets Mine properties 7 Mineral interest acquisition and exploration expenditure 8 Total assets Current liabilities Payables and provisions Derivative financial instruments 9 Lease liabilities Non-current liabilities Provisions Interest-bearing liabilities 10 Lease liabilities Deferred tax liabilities Total liabilities Net assets Equity Issued share capital 11 Reserves 11 Retained earnings 11 Equity attributable to the owners of Perseus Mining Limited Non-controlling interests Total equity	As at: 31 Dec 2020 30 Jun 2020 $’000 $’000 120,531 218,166 19,111 12,740 131,876 117,063 11,312 11,653 13,846 3,080
	296,676 362,702 6,351 6,838 23,308 57,493 546 667 712,862 630,170 1,512 1,932 182,200 202,400 116,339 33,513
	1,043,118 933,013
	1,339,794 1,295,715
	112,936 102,395 — 6,105 1,265 1,265
	114,201 109,765 38,863 40,220 168,941 217,667 112 524 47,824 51,986
	255,740 310,397
	369,941 420,163
	969,853 875,552
	850,412 776,564 33,751 57,463 68,929 32,780
	953,092 866,807 16,761 8,745
	969,853 875,552

11

Interim Financial Statements

Perseus Mining Limited

31 December 2020

Statement of changes in equity

Balances at 1 Jul 2020 Profit for the period Other comprehensive income Total comprehensive income Transactions with owners in their capacity as owners Issue of ordinary shares—Exore Share-based payments Intercompany dividend Balances at 31 Dec 2020 Balances at 1 Jul 2019 Profit for the period Other comprehensive income Total comprehensive income Transactions with owners in their capacity as owners Share-based payments Balances at 31 Dec 2019	Issued capital Retained earnings/ (Accumulated losses) Share- based payments reserve Foreign currency translation reserve Asset revaluation reserve Hedge reserve Non- controlling interests’ reserve Non- controlling interests Total equity $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 776,564 32,780 32,042 31,656 721 (6,698) (258) 8,745 875,552 — 36,149 — — — — — 12,937 49,086 — — — (32,900) 84 6,698 — (1,953) (28,071)
	— 36,149 — (32,900) 84 6,698 — 10,984 21,015 73,848 — — — — — — — 73,848 — — 2,406 — — — — 56 2,462 — — — — — — — (3,024) (3,024)
	850,412 68,929 34,448 (1,244) 805 — (258) 16,761 969,853
	776,564 (61,576) 26,964 40,766 383 (6,627) (258) 7,296 783,512 — 29,813 — — — — — 597 30,410 — — — (11,811) (51) (890) — 2,123 (10,629)
	— 29,813 — (11,811) (51) (890) — 2,720 19,781 — — 5,666 — — — — (288) 5,378
	776,564 (31,763) 32,630 28,955 332 (7,517) (258) 9,728 808,671

12

Interim Financial Statements

Perseus Mining Limited

31 December 2020

Statement of cash flows

Note Operating activities Receipts in the course of operations Payments to suppliers and employees Income taxes paid Interest received Net cash inflows 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 Proceeds on disposal of equity investments Cash acquired in the Exore transaction 13 Net cash used in investing activities Financing activities Dividends paid to non-controlling interests Repayment of borrowings Proceeds from borrowings Borrowing costs Net cash (used in)/provided by financing activities Net decrease in cash held Cash and cash equivalents at the beginning of the period Effect of exchange rate changes on foreign-denominated cash Cash and cash equivalents at the end of the period	For the half-year ending: 31 Dec 2020 31 Dec 2019 $’000 $’000 289,287 274,177 (167,572) (185,573) (18,557) (16,692) 471 1,300
	103,629 73,212
	(10,968) (6,378) (1,065) (1,068) (24,154) (8,195) (116,611) (134,636) — 4,226 205 — 1,965 —
	(150,628) (146,051)
	(2,290) — (27,653) (45,518) — 73,013 (7,644) (12,002)
	(37,587) 15,493
	(84,586) (57,346)
	218,166 125,406 (13,049) (593)
	120,531 67,467

13

Interim Financial Statements

Perseus Mining Limited

31 December 2020

Notes to the Financial Statements

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 2020, 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 2020 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’.

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.

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 2020, and any public announcements made by the group during the period in accordance with continuous disclosure requirements arising under the Corporations Act 2001.

New and amended standards adopted by the group

A number of new or amended standards became applicable for the current reporting period. The group did not have to change its accounting policies or make retrospective adjustments as a result of adopting these standards. Therefore, the accounting policies adopted are consistent with those of the previous financial year and corresponding interim reporting period.

Significant estimates and judgements

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. 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. The group makes estimates and assumptions concerning the future. The resulting accounting will, by definition, seldom equal the actual results. The areas involving a higher degree of judgement or complexity, or areas where assumptions and estimates are significant to the financial statements, were disclosed throughout the notes of the Annual Report and because no significant change has occurred since then, these are not repeated in this report. Information about these can be found in the following Notes to the Financial Statements in the Annual Report:

tatements in the Annual Report:
	Note in the Annual
	Financial Statements
Impairment	2
Unit-of-production method of depreciation/amortisation	2
Deferred stripping expenditure	2
Depreciation and amortisation expense	2
Income tax	3
Inventory	7
Reserves and resources	10
Exploration and evaluation expenditure	11
Restoration and rehabilitation provision	12
Derivative financial instruments	15
Measurement of fair value	16
Share-based payments	17, 24

14

Interim Financial Statements

Perseus Mining Limited

31 December 2020

Notes to the Financial Statements (continued)

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 2020 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 Mining, mineral exploration, evaluation, and development activities. Corporate/other Investing activities, corporate management, and inter-segment eliminations.

Revenue is derived from two external customers 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.

15

Interim Financial Statements

Perseus Mining Limited

31 December 2020

Notes to the Financial Statements (continued)

1. Segment information (continued)

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

	Edikan	Sissingué	Yaouré	Corporate/other	Consolidated
PROFIT AND LOSS For the half-year ending 31 Dec: Revenue Other income Total revenue and other income Profit before tax Income tax Profit after tax Included in segment results are: Impairments and write-offs Depreciation and amortisation Share-based payments Foreign exchange gains/(losses)	2020 2019 $’000 $’000 178,252 183,039 183 1,472	2020 2019 $’000 $’000 108,426 91,382 222 398	2020 2019 $’000 $’000 — — — —	2020 2019 $’000 $’000 — 301 1,135	2020 2019 $’000 $’000 286,678 274,421 706 3,005
	178,435 184,511 23,431 37,021 (334) — (16,207) (39,297) (395) (256) 757 985	108,648 91,780 63,847 10,799 — (51) (28,672) (37,198) (416) (329) 9,882 (608)	— — 24,913 5,411 — (157) — — — — 24,913 570	301 1,135 (54,745) (9,907) — — (628) (1,617) (1,244) (1,328) (48,770) 6,027	287,384 277,426 57,446 43,324 (8,360) (12,914)
					49,086 30,410
					(334) (208) (45,507) (78,112) (2,055) (1,913) (13,218) 6,974
ASSETS AND LIABILITIES As at: Total segment assets Included in segment assets are: Additions to non-current assets Of which: Exore acquisition Total segment liabilities	31 Dec 2020 30 Jun 2020 $’000 $’000 401,693 473,761 30,678 42,081 — — 112,600 120,284	31 Dec 2020 30 Jun 2020 $’000 $’000 233,549 175,480 80,721 24,246 73,079 — 30,990 42,891	31 Dec 2020 30 Jun 2020 $’000 $’000 589,450 482,261 133,634 261,935 — — 51,716 32,452	31 Dec 2020 30 Jun 2020 $’000 $’000 115,102 164,213 — 114 — — 174,635 224,536	31 Dec 2020 30 Jun 2020 $’000 $’000 1,339,794 1,295,715 245,033 328,376 73,079 — 369,941 420,163

16

Interim Financial Statements

Perseus Mining Limited

31 December 2020

Notes to the Financial Statements (continued)

2. Other income/expenses

Foreign exchange (losses)/gains: on translation of intercompany loans on other translations Changes in inventories: due to (decrease)/increase in net realisable value Interest and finance charges Other income Impairment of receivables Depreciation and amortisation Amortisation of deferred stripping asset Other depreciation and amortisation relating to gold production Other depreciation and amortisation	For the half-year ending: 31 Dec 2020 31 Dec 2019 $’000 $’000 (29,336) 1,637 16,118 5,337
	(13,218) 6,974 (5,145) 17,406 (1,747) (2,502) 706 3,005 — (126) (4,892) (13,250) (40,502) (64,681) (113) (181)
	(45,507) (78,112)

3. Income tax

The income tax expense recognised of $8.4 million (31 Dec 2019: $12.9 million) relates wholly to the taxable profit from the Edikan Gold Mine in Ghana.

4. Inventories

Current Ore stockpiles—at cost Ore stockpiles—at net realisable value Gold in circuit—at cost Bullion on hand—at cost Materials and supplies Non-current Ore stockpiles—at net realisable value	31 Dec 2020 30 Jun 2020 $’000 $’000 40,603 27,170 22,649 18,915 8,163 6,698 14,698 10,250 45,763 54,030
	131,876 117,063 23,308 57,493
	23,308 57,493

Refer to Note 2 for the changes in inventory as a result of changes in net realisable value. Included in that amount is an increase of $2.0m to the provision for slow and obsolete stock at Edikan.

5. Receivables

Current Sundry debtors GST and VAT receivables Non-current Security deposits	31 Dec 2020 30 Jun 2020 $’000 $’000 7,950 6,181 11,161 6,559
	19,111 12,740 6,351 6,838
	6,351 6,838

17

Interim Financial Statements

Perseus Mining Limited

31 December 2020

Notes to the Financial Statements (continued)

5. Receivables (continued)

Sundry debtors are non-interest bearing and generally on 30-day terms. The GST and VAT receivable relates primarily to the net VAT receivable due from the Ghana Revenue Authority. GHS 4.3 million (approximately USD 0.8 million, or A$1.1 million) was received during the period, and subsequent to the end of the period, GHS 28.1 million (approximately USD 4.9 million, or A$6.3 million) was received.

6. 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 Transfers to plant and equipment Transfers to Mine properties Written off Translation difference movement Carrying amount at the end of the period Total Property, plant and equipment	31 Dec 2020 30 Jun 2020 $’000 $’000 341,319 368,660 (241,712) (242,353)
	99,607 126,307
	For the period ending: 31 Dec 2020 30 Jun 2020 $’000 $’000 126,307 172,210 355 2,223 605 2,791 (19,989) (53,352) (34) (617) (7,637) 3,052
	99,607 126,307 613,255 503,863 503,863 246,502 135,253 262,530 (605) (2,791) (2,738) (3,832) — (159) (22,518) 1,613
	613,255 503,863
	712,862 630,170

7. Mine properties

Mine properties—at cost Accumulated depreciation Reconciliation of mine properties Balance at the beginning of the period Additions Transfer from assets under construction Amortisation Translation difference movement Carrying amount at the end of the period	For the period ending: 31 Dec 2020 30 Jun 2020 $’000 $’000 643,486 682,722 (461,286) (480,322)
	182,200 202,400 202,400 232,761 18,738 43,176 2,738 3,832 (25,518) (80,910) (16,158) 3,541
	182,200 202,400

18

Interim Financial Statements

Perseus Mining Limited

31 December 2020

Notes to the Financial Statements (continued)

8. Mineral interest acquisition and exploration expenditure

	For the period ending:	For the period ending:
	31 Dec 2020	30 Jun 2020
	$’000	$’000
Mineral interest acquisition and exploration expenditure—at cost	116,339	33,513
Reconciliation of mineral interest acquisition and exploration	expenditure
Balance at the beginning of the period	33,513	17,405
Additions—Exore acquisition	72,827	—
Additions—Other	14,404	20,447
Written off	(334)	(4,378)
Translation difference movement	(4,071)	39
Carrying amount at the end of the period	116,339	33,513

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. Refer to Note 13 for further details with respect to the acquisition of Exore Resources.

9. Derivative financial instruments

The group, in accordance with its financial risk management policies, regularly enters into contracts that have the effect of fixing the price received for a portion of its anticipated production and sale of gold. In the past, these have been split between:

• derivatives for which a balance in the Statement of Financial Position has been recognised, and hedge accounting was applied (see Note 15 of the Annual Financial Statements); and

• spot deferred and forward sales contracts into which the group directly delivered, and which therefore met the ‘own-use’ exemption and were therefore not recognised as financial instruments.

In this half-year, the last derivative instruments were settled and going forward, the group anticipates using spot deferred and forward sales contracts only. At 31 December 2020, the group held such contracts to deliver 310,434oz of gold at an average sales price of US$1,517.49 per ounce, representing 20% of anticipated gold production over the next three years.

10. Interest-bearing liabilities

Revolving cash advance facility—current portion Revolving cash advance facility—non-current portion Reconciliation of interest-bearing liabilities Balance at the beginning of the period Additional drawdowns Interest expense Repayments made Translation difference movement Carrying amount at the end of the period	For the period ending: 31 Dec 2020 30 Jun 2020 $’000 $’000 — — 168,941 217,667
	168,941 217,667 217,667 44,826 — 226,534 4,950 (32,274) (45,518) (21,402) (8,176)
	168,941 217,667

19

Interim Financial Statements

Perseus Mining Limited

31 December 2020

Notes to the Financial Statements (continued)

10. Interest bearing liabilities (continued)

Assets pledged as security

The revolving corporate cash advance facility (Corporate Facility) is secured over the following assets:

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

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

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

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

11. Issued capital and reserves

(a) Issued and paid-up share capital

Balance at the start of the period Issued pursuant to the exercise of vested performance rights Issued pursuant to the acquisition of Exore Resources (Note 13) Balance at the end of the period	For the half-year ending 31 Dec: 2020 2019 2020 2019 $’000 $’000 Number Number 776,564 776,564 1,168,055,480 1,167,447,147 — — 10,203,017 533,333 73,848 — 47,789,272 —
	850,412 776,564 1,226,047,769 1,167,980,480

(b) Performance rights

Performance rights have been granted, exercised, and forfeited as follows:

Grate	Vesting	Expiry	Balance at	Granted	Exercised	Forfeited	Balance at	Vested
date	date	date	start of	during the	during the	during	end of the	and
			period	period	period	the	period	exercise-
						period		able at
								end of
								period
			Number	Number	Number	Number	Number	Number
Issued to	Directors—Long-Term Incentives
25-Nov-16	30-Jun-19	25-Nov-23	333,333	—	333,333	—	—	—
24-Nov-17	30-Jun-20	24-Nov-24	2,233,334	—	2,233,334	—	—	—
28-Nov-18	31-Dec-21	28-Nov-25	733,333	—	—	—	733,333	—
29-Nov-19	30-Jun-22	29-Nov-26	1,346,500	—	—	—	1,346,500	—
26-Nov-20	30-Jun-23	26-Nov-27	—	632,960	—	—	632,960	—
Issued to	Directors—Short-Term Incentives
26-Nov-20	30-Jun-21	26-Nov-27	—	65,448	—	—	65,448	—
Issued to	Others—Long-Term Incentives
3-Aug-17	30-Jun-20	3-Aug-24	8,083,334	—	7,308,334	—	775,000	775,000
7-May-19	31-Dec-21	7-May-26	6,758,333	—	300,000	2,050,000	4,408,333	—
27-Jun-19	31-Dec-21	27-Jun-26	4,700,000	—	—	—	4,700,000	—
26-Sep-19	30-Jun-22	26-Sep-26	9,858,700	—	—	1,598,300	8,260,400	—
26-Aug-20	30-Jun-23	26-Aug-27	—	4,189,611	—	544,444	3,645,167	—
Issued to	Others—Short-Term Incentives
29-Jul-20	30-Jun-21	29-Jul-27	—	239,978	28,106	16,740	195,132	—
			34,046,867	5,127,997	10,203,107	4,209,484	24,762,273	775,000

20

Interim Financial Statements

Perseus Mining Limited

31 December 2020

Notes to the Financial Statements (continued)

11. Issued capital and reserves (continued)

(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 payment reserve

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

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 non-controlling 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. The balance on this reserve is now $nil, as (refer to discussion in Note 9) all the hedges have now been settled.

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.

12. 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.

21

Interim Financial Statements

Perseus Mining Limited

31 December 2020

Notes to the Financial Statements (continued)

13. Acquisition of Exore Resources Limited

During the period, the group acquired 100% of the issued share capital of Exore Resources Limited (‘Exore’) via a scheme of arrangement. Exore was an Australian public company listed on the Australian Securities Exchange, which, through its subsidiaries, held exploration interests over approximately 2,000km[2] near to the Sissingué Gold Mine. Included within this land package is the Bagoé Project.

Court approval for the scheme was granted 15 September 2020 which is the deemed acquisition date for accounting purposes. The acquisition was implemented, and the new shares were issued to the previous shareholders of Exore on 25 September 2020.

The acquisition is not accounted for as a business combination, as the nature of the activities of Exore did not constitute an integrated set of activities and assets that are capable of being conducted and managed for the purpose of providing a return, nor were the acquired assets and processes capable at the time of acquisition of producing intended output, namely the production of gold in a saleable form. Management applied the ‘concentration test’ as allowed under AASB3 Business Combinations to make the assessment that Exore was not a business and therefore the acquisition did not constitute a business combination.

The acquisition is instead accounted for as the acquisition of the net assets of the group headed by Exore. The consideration paid was in the form of 47,798,272 ordinary Perseus Mining Limited shares, at a share price at acquisition date of $1.545 per share. In addition, transaction costs incurred by the entity were $956,635 therefore the total fair value of the consideration paid was $74,804,965.

The assets and liabilities acquired at fair value were as follows:

	Fair value
	$’000
Cash	1,965
Trade and other debtors	209
Property, plant, and equipment, and right of use assets	252
Mineral interest acquisition and exploration expenditure	72,827
Trade and other creditors, including lease liabilities	(402)
Provisions	(46)
	74,805

The acquisition of Exore Resources Limited resulted in the following companies becoming direct or indirect subsidiaries of the Company and therefore part of the group:

Original name of company	Subsequently renamed company	Country of incorporation
Exore Resources Limited	Perseus ERX Holdings Pty Ltd	Australia
Slipstream LP Pty Ltd	n/a	Australia
Exore Resources DS JV Pty Ltd	Perseus DS JV Pty Ltd	Australia
Exore Resources Cote d’Ivoire No 1 Pty Ltd	Perseus CDI No 1 Pty Ltd	Australia
Exore Resources Cote d’Ivoire No 2 Pty Ltd	Perseus CDI No 2 Pty Ltd	Australia
Aspire Nord Cote d’Ivoire SARL	n/a	Côte d’Ivoire
Exore Resources Cote d’Ivoire SARL	Perseus CDI Nord SARL	Côte d’Ivoire

In addition to the above, which all became 100%-owned subsidiaries of the group, the group also gained a 35% shareholding in Exore Resources CDI DSR No 1 SARL (subsequently renamed ERX DSR SARL).

22

Interim Financial Statements

Perseus Mining Limited

31 December 2020

Notes to the Financial Statements (continued)

14. Contingencies

Perseus has agreed compensation with about two thirds of the landowners affected by the Yaouré Gold Mine at a rate endorsed by the authorities. The remaining one third are seeking a significantly larger compensation rate and the administrative process prescribed by the Ivorian mining legislation to be followed if agreement cannot be reached has been initiated. In parallel, the remaining landowners have commenced a number of legal actions in the Ivorian commercial court. Perseus has made submissions to the court that it does not have jurisdiction to hear the case based on the fact that a prescribed administrative process exists and is being followed, also making reference to a decision by the highest Ivorian court, the “Cour de Cassation” which declared that the commercial court had no jurisdiction to hear a very similar case. Perseus expects the commercial court to declare that it does not have jurisdiction but this outcome is not certain. If the commercial court declares itself competent to hear the case and determine a rate, it is uncertain what rate would be applied. The administrative procedure had been started but was suspended pending resolution of the court cases. If the administrative procedure is completed, Perseus does not expect any exposure over and above the rate already agreed with the majority of landowners.

Aside from this matter, known contingent liabilities remain unchanged from those disclosed in the annual financial report for the period ended 31 December 2020.

15. Commitments

Known commitments remain unchanged from those disclosed in the annual financial report for the period ended 31 December 2020, except for the following:

(a) Exploration commitments Minimum expenditure commitments on exploration properties remain materially unchanged from those disclosed at 30 June 2020, except for the new area acquired in the acquisition of Exore Resources. These new tenements will add estimated exploration minimum commitments of $1,020,000 within one year, and $3,060,000 in between two and five years.

(b) Gold delivery commitments

b) Gold delivery commitments
	Gold for	Contracted	Value of
	physical delivery	sales price	committed sales
	oz	US$/oz	$’000
Within one year	259,777	1,558.21	404,786
Later than one but not later than five years	50,657	1,308.70	66,295

The 310,434 oz of gold sales commitments represents 20.4% of anticipated gold production over the next three years.

(c) Capital commitments

As the construction of Yaouré nears completion, the contractual commitments in respect of the construction project that were disclosed in the annual financial report have mostly been either settled or are recorded as liabilities as at 31 December 2020. Remaining commitments for the purchase of property, plant and equipment at Yaouré total $753,000 (at 30 June 2020: $9,152,000).

16. Subsequent events

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.

23

Perseus Mining Limited

31 December 2020

Directors’ Declaration

Directors’ Declaration

In the directors’ opinion:

• (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 2020 and of its performance for the half-year ended on that date; and

• (ii). complying with Accounting Standards, the Corporations Regulations 2001, and other mandatory professional reporting requirements; and

• (b) there are reasonable grounds to believe that Perseus Mining Limited will be able to pay its debts as and when they become due and payable.

This declaration is made in accordance with a resolution of the directors.

==> picture [99 x 45] intentionally omitted <==

Jeffrey Allan Quartermaine Managing Director and Chief Executive Officer Perth, 23 February 2021

24

==> picture [77 x 59] intentionally omitted <==

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

Report on the half-year financial report

Conclusion

We have reviewed the 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 2020, the statement of comprehensive income, statement of changes in equity and statement of cash flows for the half-year ended on that date, significant accounting policies and explanatory notes and the directors' declaration.

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

1. giving a true and fair view of the Group's financial position as at 31 December 2020 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 .

Basis for conclusion

We conducted our review in accordance with ASRE 2410 Review of a Financial Report Performed by the Independent Auditor of the Entity (ASRE 2410). Our responsibilities are further described in the Auditor’s responsibilities for the review of the half-year financial report section of our report.

We are independent of the Group in accordance with the auditor independence requirements of the Corporations Act 2001 and the ethical requirements of the Accounting Professional & Ethical Standards Board’s APES 110 Code of Ethics for Professional Accountants (including Independence Standards) (the Code) that are relevant to our audit of the annual financial report in Australia. We have also fulfilled our other ethical responsibilities in accordance with the Code.

Responsibility of management for the half-year financial report

Management is 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 management determines 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.

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.

PricewaterhouseCoopers, ABN 52 780 433 757

25

==> picture [77 x 59] intentionally omitted <==

Auditor's responsibility for the review of the half-year financial report

Our responsibility is to express a conclusion on the half-year financial report based on our review. ASRE 2410 requires us to conclude whether 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 2020 and of 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 .

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.

==> picture [160 x 46] intentionally omitted <==

PricewaterhouseCoopers

==> picture [105 x 43] intentionally omitted <==

Craig Heatley Partner

Perth 23 February 2021

26