PRU - Perseus Mining

[jonojpsg]

PRU seem to be advancing their project financing ok.

Bought some Puts as a hedge. Sounds like a reasonable plan to me.

By reading this ann I get the impression that are after predominantly debt financing for the first project and not going to issue shares. I thought it might have been a half and half type deal.

They have pretty much done that already haven't they though? I mean raising $75m was a decent chunk of what they need, so it makes sense to go debt funding, especially when payback is 1.5 years!! Why dilute if you don't need to? Then once Ayanfuri is up and running, simple to start up Tengrela using cashflow from that. Simple, and yet still waiting for the "inevitable" rerating

 

[ColB]

This Turtle possibly ready to go Kenna!

Gold up USD $23.11 overnight to $977.81 [Source: www.goldprice.org/]

And I'd think we be happy to have this new bloke on board [see below]

ASX Release 2 September 2009

Perseus Mining Limited (ASX: PRU) is pleased to announce the appointment of T. Sean Harvey as a non-executive director. Based in Toronto, Canada, Mr. Harvey will use his extensive experience in the investment banking and resource sectors to assist the Company as it seeks to broaden global
market awareness of its evolution into a West African gold producer.

For the last 10 years Mr. Harvey has been a senior officer or director of various mining companies. Sean was the founder and remains Chairman of Andina Minerals Inc., a development stage company with a multi-million ounce gold deposit in Chile. Mr. Harvey is also currently the sole
Canadian director for Perth-based Moto Goldmines Limited, a Toronto Stock Exchange-listed company which is working towards development and production at the large Moto gold project in the Democratic Republic of the Congo. Mr. Harvey also served as President and CEO of: Orvana Minerals Inc., TXV Gold Inc. through its sale to Kinross in 2003 and Atlantico Gold through its sale of its Amapari Project to Wheaton River Minerals (now Goldcorp) in 2004. Prior to working directly for mining companies, Mr. Harvey spent over 10 years in the investment banking and merchant banking areas, primarily focused on the mining sector.

Disclosure: I hold

 

[Sean K]

This Turtle possibly ready to go Kenna!

Gold up USD $23.11 overnight to $977.81 [Source: www.goldprice.org/]

And I'd think we be happy to have this new bloke on board [see below]

Disclosure: I hold

Yeah looks handy. Might be useful if/when they are get their act together to list in Canada.

Good move on gold, but hasn't broken through the large triangle it's been ranging in for the past few months.

Perhaps the updated Trengela resource will provide a catalyst.

 

[Sean K]

A good few days for PRU but just following POG up really. Sitting in that 90-$1.00 resistance zone. I'm looking forward to it eventually getting over that and that line forming up as support. Should technically release it I suspect, but who knows with the market at the moment.

I was expecting more news in late August regarding drilling at Sissingue and exploration around Tengrela. They were also drilling under a few of their deposits at Ayanfuri to test them out. Must be close to getting some more results out. Also very soon should be an update on Canadian listing.

What BGF was expecting this quarter:

Share Price Drivers and Forthcoming News Flow

We always have to be mindful that gold companies can go into a “black hole” once a DFS study is finished and financing negotiations commence, so what is the news flow that will keep Perseus in the headlines? We can look
forward to the following;

• Conversion of more resources to the reserve category at Ayanfuri
• Announcement of tenders opening for construction of the project and commitment to long lead items
• Progression of the Canadian listing plans and the release of the 43-101 statement in late August/early September
• Increased research coverage in Australia and Canada (very few brokers cover it in Australia, other than BGF)
• Pre-feasibility study results on Tengrela, in the Ivory Coast (130,000 oz p.a.)
• Exploration drilling results from Tengrela (moving from two to four rigs, drilling commencing now)
• Continued drilling at Ayanfuri with two rigs about to recommence drilling

 

[jonojpsg]

Hey kennas, you noticed this today? Up over $1 and sellers drying up, especially looking at the prices they're after! Maybe we're seeing the move up that they deserve Certainly hope so anyway

 

[Sean K]

Hey kennas, you noticed this today? Up over $1 and sellers drying up, especially looking at the prices they're after! Maybe we're seeing the move up that they deserve Certainly hope so anyway

Significant move and has increased my net wealth by a few K, so I am happy. Sellers dried up for the minute, but it's just intra day.

I think this is probably just POG related, so I am cautious.

I will be more interested in adding more once the $1.00 ish line is support or they have proved up some more resources.

Longer term, I agree with the reports from the analysts pasted in here.

But, I am cautious of the overall market.

 

[Donga]

Does anyone know about the upcoming Rodman & Renshaw Global Investment Conference in New York this week? Is it any more effective than our industry conferences? Pleased to see PRU, Advent (owned by MMR), and ESG are presenting as well as a number of other Aussie companies including AOE, BOW, ADU, AGD, CTO and BRM. Alan Greenspan is keynote speaker see program http://www.rodmanandrenshaw.com/conferences?id=32

 

[Stagman]

Significant move and has increased my net wealth by a few K, so I am happy. Sellers dried up for the minute, but it's just intra day.

I think this is probably just POG related, so I am cautious.

I will be more interested in adding more once the $1.00 ish line is support or they have proved up some more resources.

Longer term, I agree with the reports from the analysts pasted in here.

But, I am cautious of the overall market.

There's plenty of talk around that Perseus Mining is on Lihir Gold's radar as a takeover target, if it's true expect the sp to soar towards $2 in the short term.

 

[prawn_86]

There's plenty of talk around that Perseus Mining is on Lihir Gold's radar as a takeover target, if it's true expect the sp to soar towards $2 in the short term.

Do you have a source for that? Or is it just an internet rumour to try and ramp the price?

Here at ASF we deal in facts, so please provide a link/evidence etc

 

[Sean K]

Do you have a source for that? Or is it just an internet rumour to try and ramp the price?

Here at ASF we deal in facts, so please provide a link/evidence etc

There has been some press and research from BGF saying that they are probably on the radar for a TO, but the name mentioned previously was Redback, not Lihir. Saying it will sore to $2.00 is just crap, and belongs on HC or RC. You were very kind in leaving that post there Prawn.

 

[Stagman]

There has been some press and research from BGF saying that they are probably on the radar for a TO, but the name mentioned previously was Redback, not Lihir. Saying it will sore to $2.00 is just crap, and belongs on HC or RC. You were very kind in leaving that post there Prawn.

And a very warm welcome to ASF Stagman, it's really good of you to share some information, it's a pity that you won't be coming back in a hurry.

Perseus surges as Lihir takeover talk intensifies

BARRY FITZGERALD
September 8, 2009 .

THE market has decided that Lihir Gold has Perseus Mining in its takeover sights as part of Lihir's plan to become a million-ounce-a-year gold producer from multiple mines in West Africa.

Perseus shares rose 17.5 ¢, or 19 per cent, to $1.09 yesterday, valuing the company at $340 million. A 30 per cent premium in a takeover bid would push Perseus' value to $444 million.

Lihir has not said it is targeting Perseus, but from the market's viewpoint it did the next best thing by outlining its West African growth ambitions in an investor briefing on Friday.

Lihir is a 1 to 1.2 million-ounce-a-year producer from its mine on Lihir Island in Papua New Guinea, Mount Rawdon in Queensland and the new Bonikro mine in Ivory Coast, West Africa.

Bonikro and Mount Rawdon were acquired last year through the $1 billion takeover of Equigold. Bonikro's planned output is an average of 120,000 ounces of gold annually, with Lihir telling analysts it wanted to grow its West African production base to close to a million ounces a year by 2018.

That growth would come from an expansion at Bonikro, opportunities created by the group's aggressive exploration program across West Africa and from two unidentified merger and acquisition opportunities.

Analysts said Perseus ticked all of Lihir's ''strategic assessment criteria'' covering the scale of operations, the mine life, the location and the cost.

Lihir said acquisitions would have to be producers of more than 200,000 ounces of gold annually. Perseus plans to be producing 220,000 ounces a year from its Ayanfuri mine when it is developed in 2011. The mine life of the 5.2 million-ounce deposit is also the 10 years-plus that Lihir wants.

Ayanfuri is in Ghana, the most stable of the West African nations, ticking another box for Lihir. Perseus would also deliver Lihir the proposed 100,000-ounces-a-year Tengrela gold project in Ivory Coast, providing the ''operational synergies'' Lihir wants from any acquisition.

Perseus fits Lihir's suggested cost for its proposed bolt-on acquisitions in West Africa of $US200 million ($A235 million) to $US700 million.

A first port of call for Lihir in any pursuit of Perseus would be Macquarie Bank. Macquarie owns 13 per cent of the stock. Melbourne fund manager Acorn is the next biggest with 7 per cent.

 

[Sean K]

And a very warm welcome to ASF Stagman, it's really good of you to share some information, it's a pity that you won't be coming back in a hurry.

Aren't you even going to make an attempt to justify the 'sore towards $2.00 in short time' analysis? Thought not.

 

[Stagman]

Aren't you even going to make an attempt to justify the 'sore towards $2.00 in short time' analysis? Thought not.

"Perseus shares rose 17.5 ¢, or 19 per cent, to $1.09 yesterday, valuing the company at $340 million. A 30 per cent premium in a takeover bid would push Perseus' value to $444 million."

It might pay to read posts a little more carefully, I know that you must be pretty close to all the PRU action over there in Peru.

 

[Sean K]

"Perseus shares rose 17.5 ¢, or 19 per cent, to $1.09 yesterday, valuing the company at $340 million. A 30 per cent premium in a takeover bid would push Perseus' value to $444 million."

It might pay to read posts a little more carefully, I know that you must be pretty close to all the PRU action over there in Peru.

30% on top of $1.09 is $2.00?

OK

Thanks.

Please note, ASF has strong views on posting price targets. If you post one, it MUST come wih some attempted FA and/or TA.

 

[Sean K]

Nice break up from PRU on the back of POG gains and the Lihir speculation. Longer term looks like the significant resistance across 90c to $1.00 may be broken, but POG failing at $1000 could put a dampner on things. Potential for a pole and pennant to shape up which would be a nice outcome.

 

[jonojpsg]

Nice break up from PRU on the back of POG gains and the Lihir speculation. Longer term looks like the significant resistance across 90c to $1.00 may be broken, but POG failing at $1000 could put a dampner on things. Potential for a pole and pennant to shape up which would be a nice outcome.

And that would then make for a target of what, $1.40ish? Funny that, about 30% above $1.10 - where did I read that

 

[jonojpsg]

Hey y'all, there's an announcement out! Some NICE hits at Tengrela, with a mouthwatering 20m @ 65g/t as well as a couple of hits 4.5km along strike If that gets filled in, that would look pretty impressive IMO.

ANyway, SP is running up somewhat, and if gold holds above $1k then this will definitely be a basis for some strong upwards moves over the next couple of months.

 

[Sean K]

Hey y'all, there's an announcement out! Some NICE hits at Tengrela, with a mouthwatering 20m @ 65g/t as well as a couple of hits 4.5km along strike If that gets filled in, that would look pretty impressive IMO.

ANyway, SP is running up somewhat, and if gold holds above $1k then this will definitely be a basis for some strong upwards moves over the next couple of months.

Holy ****, that is an amazing intersection for West Africa. Quite incredible.

Yes, if that gets filled in, we're looking at possibly millions of ounces.

This is all outside the current resource right? And all within about 100m of surface?

Some of the other hits are just as staggering, see below.

1m at 217g/t? That's bonanza stuff.

Surprised the stock didn't run more on this.

MD's comment:

"These grades have the potential to enhance the feasability study..." HUH? Enhance? lol

And lol that this is 6 days after a 'please explain'.

 

[shag]

well, well, theres another please explain re the obviously leaked 'bonanza' grades and its subsequent 30 odd pc run, imo.
its about time we lost the hogans heros approach to insider trading.
i was holding but its just rediculous in magnitude and frequency.

 

[Sean K]

If LGL aren't running the ruler over them then the media is saying the bloody well should.


Why the Ivory Coast is the factor to watch
Robin Bromby | September 16, 2009
Article from: The Australian

SHARES in Perseus Mining took a big leap earlier this month when speculators thought they detected hints that Lihir Gold was after the Ghanaian explorer.

The assumption was that Lihir saw the 5 million-plus ounce gold resource at Perseus's project in Ghana as a prize worth snatching. Which it probably is - and may well be in Lihir’s mind despite its protestations of not looking for acquisitions.

But the main game may actually be in neighbouring Ivory Coast. Lihir has the Bonriko gold mine there, a property it picked up through the merger with Equigold.

Overnight the Dow Jones Newswires reports that Lihir’s chief financial officer Phil Baker said his company had its eye on increasing its assets in West Africa. "We didn't go (to the Ivory Coast) to run Bonikro at 120,000 ounces a year," said Baker. He added though that Lihir has no immediate plans for acquisitions in West Africa and is rather focusing on building its existing business.

The story also reports these words from Lihir flak Joe Dowling: "We're working hard to turn around (the perception of Lihir) as an underperformer."

Bonikro began commercial gold production in August 2008. For the first full year, production is expected to be approximately 140,000 ounces, of which LGL’s share is forecast at approximately 120,000oz. Subsequent average annual gold production is expected to be approximately 120,000oz, of which LGL’s share is expected to be around 100,000oz.

So why is Ivory Coast significant?

Well, because of probably the most under-reported news of the week.

Perseus said it had intercepted some big gold grades at its Tengrela project in Ivory Coast. These included 20m at 65.5 grams/tonne, 86m at 3.2g/t and 78m at 1.7g/t. The explorer has a feasibility study in progress at present.

So, here we have a company that has 5.3 million ounces of gold in Ghana and now looks as if it is on the track of another lode in the country next door.

Perseus must be the subject of intense scrutiny by more than one potential acquirer. And mark those words: Lihir did not go to Ivory Coast to just mine 120,000oz a year. The comment was in the context of doing more exploration at Bonriko, but the Lihir people can’t help but keep looking with watering mouths at Perseus. That acquisition would surely erase the memory of the Ballarat Goldfields disastrous buy.

And not that Tengrela is a new story. It was owned in the late 1990s by the former Leo Shield Exploration, now Caspian Oil & Gas (CIG) via listed life as Shield Telecommunications and then Afminex. Unfortunately for Leo Shield, South Africa’s Randgold withdrew from its joint venture in 1999 after spending $780,000, saying it found geochemical results disappointing.

It’s always nice to see someone else make disastrous moves. You can just taste the schadenfreude - only the Germans would have a word that means the malicious enjoyment of other’s misfortunes.

Someone at Randgold must be kicking themselves.