I believe Mr Quartermaine has done a terrific job as Managing...

I believe Mr Quartermaine has done a terrific job as Managing Director and CEO of PRU however I am not a supporter of the current hedging policy.

The company is net cash positive and will continue in this trajectory of increasing their net cash position but could be much further in front.

PRU forecast they will produce about 175,000 to 190,000 ounces to June 2021 half year.

My calculations suggest they will produce 86,500 to 101,500 this coming June Quarter.

They state they are about 20% hedged but this is over 3 years of production and does not specify that a significant number of hedged ounces need to be delivered up to June 2022.

From the March Quarterly.

“ At the end of the quarter, Perseus held gold forwardsales contracts for 210,301 ounces of gold at a weighted average sales price ofUS$1,513 per ounce. These hedges are designated for delivery progressively over the period up to30 June 2022. Perseus also held spot deferred sales contracts for a further 101,806 ounces of gold at a weighted average sales price of US$1,634per ounce. Combining both sets of sales contracts.

Hedging contracts currently provide downsideprice protection to approximately 20% of Perseus’s currently forecast goldproduction for the next three years, leaving 80% of forecast productionpotentially exposed to movements (both up and down) in the gold price”.

Based on the above information PRU are required to deliver 210,301ounces over the next 5 quarters which equates to about 42,500 ounces perquarter

It is logical to assume that for the next Quarter (June) 42,500 hedgedounces at an average sales price of US$1,513 per ounce will be delivered against86,500 to 101,500 ounces which equates to 42% to 49% of total quarterly production.

Based on a gold price of about US$1775 per ounce they are losingrevenue of US$262 per hedged ounce which is about US$11 million per quarter.

With the company being in a positive net cash position, I do notsee the need to hedge.