Sean K
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UPDATE - WEST AFRICAN GOLD PROJECTS
Ramp-up of Exploration in Ghana and Ivory Coast
HIGHLIGHTS
• 10,000m of drilling completed at Tengrela in June, up from 4,250m in May
• May drill intercepts from Tengrela include 42m at 3.6g/t and 10m at 6.9g/t Au
• Perseus will have six rigs operating, up from two in June
• Soil programs are generating numerous new drill targets
• The Ayanfuri feasibility study is in on track for release in July
Looks like we might get a more steady flow of news over the next few months. Been pretty quiet since the placement.
....................................................Investment Perspective: The release of the Definitive Feasibility Study (DFS) is a major step along the path to finance and development. It is a challenging task to finalise a DFS when the resource base is expanding so strongly. An additional 3.2 mill. oz have to be brought into a Stage Two study. This will provide substanitally improved numbers and could point to a post-commissioning expansion up to 7 mtpa for 300,000 oz p.a. of gold. Importantly, the DFS released today confirms the size and the potential profitability, demonstrating that it is one of the leading ASX-listed emerging gold producers. The Company is currently working on the 43-101 statement in preparation for an anticpated Canadian listing, tentatively scheduled for later this year. Given the premiums at which its peer group is trading in Toronto, relative to PRU, we expect strong interest and a higher share price over the coming months. The Bottom Line: Updating the models for todayʼs DFS figures, Ayanfuri has a pre-tax NPV of $2.27/share. Add the value of Tengrela ($0.74/share) and cash of $80m and the shares still have considerable upside from these levels.
Another $2.75 target slapped on this turtle.
Perseus perceived to be worth its weight in gold
What the brokers say: Sarah-Jane Tasker | August 03, 2009
Article from: The Australian
Perseus Mining (PRU); Rodman & Renshaw; Market outperform; Target price of $2.75;Last traded at 75c
PERSEUS has finally received some deserving attention after it revealed a maiden reserve of 2.14 million tonnes ......
Fundamentals seem pretty clear here. Pretty good on a comparitive basis, but maybe it's the stage of the cycle we're in that makes this under loved. Perhaps difficulty in future project financing is the issue.
Has taken a shalacking the past couple of days after approaching long term significant hurdle at $1.00 ish. Perhaps only general market strength and/or POG breakthrough $1050 ish will push it through. Or, maybe a surprise number from the Tengrela upgrade. Would have to be double I reckon to make the market wake up.
I hope that isn't a potential H&S neckline there. eeek
I'm just clutching at straws to understand why it seems to be so undervalued. Maybe it's the amount of low grade stuff they're including in the overall resource. Maybe it's just the overall negativeness of the market. Although, this has recovered from about 30c, which was a remarkable low point for a company with so much gold in the ground.C'mon kennas, difficulty in financing when they already have about half the cash they need to get Ayanfuri up and running?? Agreed though it seems to have run into resistance - was hoping to see it break that magic $1 but looks like might be waiting a bit longer
I am cautious on this because another company I researched for some time has about 12m oz au equiv in the ground, open pit, low grade, low strip ratio, and has turned into a complete turkey, and I doubt it will ever mine.
You talking KMN? I have followed your comments on that thread and yes, I can imagine how you would be cautoius after watching them stuff things up!! Is the comparison valid though - eg does the fact that KMN grades included Ag and others? whereas PRU is all Au? That is if it is KMN you're referring to?
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