Perseus Mining Reports on Financial Year Ending 30 June 2020

PERTH, Western Australia, Aug. 25, 2020 (GLOBE NEWSWIRE) -- Perseus Mining Limited (“Perseus” or the “Company”) (TSX & ASX: PRU) has released its Financial Report for the financial year ending June 30, 2020 (“FY2020” or the “Period”). The full report is available on www.perseusmining.com, www.asx.com.au and www.sedar.com.

The Perseus group produced a total of 257,639 ounces of gold in the twelve months to June 2020. The weighted average all-in site costs (“AISC”) including the costs of production, royalties and sustaining capital, averaged US$972 per ounce of gold produced, 1% more than in the last financial year. The average sale price of gold during the year was US$1,457 per ounce, US$200 per ounce more than in the previous financial year.

Highlighting its successful transition to a multi-mine, multi-jurisdictional gold producer, in FY2020 Perseus recorded EBITDA from operations of A$273.8 million, a 67% increase compared to the previous financial year. This comes about following an increase in sales revenue of 16% to A$591.2 million and a decrease in cost of sales of 8% to A$317.4 million.

In FY2020, Perseus recorded a net profit after tax of A$94.4 million or 8.1 cents per share, compared to a net profit after tax of A$7.6 million or 0.7 cents per share in the previous financial year. This materially improved after tax profit is predominantly due to:

• A 16% increase in revenue resulting from 16% higher gold prices as well as higher gold sales at Sissingué compared to the prior year.

• An 8% decrease in cost of sales due to decreased mining costs at Edikan following the implementation of a revised mining strategy involving changing from a two-contractor operation to a single mining contractor operation with effect from January 1, 2019.

• Depreciation and amortisation expense of A$134.1 million, representing a decrease of 13% during the year due to lower rates of mining at Edikan as required by the revised mining strategy.

• A write-down and impairment expense of A$4.5 million compared to the prior year write-down of A$0.1 million. The current year impairment expense related mainly to written off exploration expenditure on the Zanikan and Papara prospects in Côte d’Ivoire and the Dadieso prospect in Ghana.

• A foreign exchange gain of A$13.8 million, compared to a gain of A$15.5 million in the prior year, mainly due to devaluation of the Australian dollar against the US dollar and revaluation of intercompany loans.

• A decrease in financing costs to A$4.1 million from A$6.0 million in the prior year.

• An income tax expense ofA $32.2 million compared to a A$1.8 million tax benefit in the prior year due to the commencement of payment Ghanaian income tax instalments in the current financial year.

At June 30, 2020, the total value of cash and bullion on hand was A$237.5 million, or A$69.2 million more than at June 30, 2019.  Operating cash flows increased by A$66.6 million in FY2020 to A$212.8 million, or 18.2 cents per share, due to increased revenue and materially reduced unit costs. A total of A$269.9 million of cash was invested during the period, including A$214.9 million on the development of the Yaouré Gold Mine and A$18.7 million on exploration.  Net proceeds from borrowing of A$181.0 million were received during the year and A$15.3 million in borrowing costs were paid to lenders.