PRU - Perseus Mining

[jonojpsg]

PRU could be in the cross hairs for other smaller goldies now to try and fill the LGL void in the 'mid cap' area. KCN look like they're trying to fill the void, but PRU could quite possibly get in there if they wanted to also. It seems inevitable that they will be part of any further consolidation. Easy pickings for NCM if they wanted to bolt on 200-400k more ounces production per year.

Definitely! Seems a bit strange that they haven't been picked up yet, or even had some interest expressed?? Given that the ounces are there and the plants being built, the price tag of $1.2b seems pretty reasonable.

If you look at it from the basis of price per oz production it's only $3000 per oz ($1.2bn/400koz).

Given a cash margin at current Au price of about $800/oz it would only take 4 years to recoup that outlay then it's all good! Even with the inevitable takeover premium, it's probably only 6 years, and with a resource base that covers that production for about 15-20 years.

Have been considering jumping back in at this level?

 

[McCoy Pauley]

PRU (either itself or through subsidiaries, like Manas Resources) has deposits in some fairly dodgy areas of the globe, though.

At least with LGL, the sovereign risk was relatively low.

 

[Sean K]

PRU (either itself or through subsidiaries, like Manas Resources) has deposits in some fairly dodgy areas of the globe, though.

At least with LGL, the sovereign risk was relatively low.

Yep, like Ivory Coast and PNG...

Their key risk asset sitting on top of a volcano nonetheless....

 

[McCoy Pauley]

Yep, like Ivory Coast and PNG...

Their key risk asset sitting on top of a volcano nonetheless....

Nah, I was thinking more of one of the ex-Soviet nations ending in 'stan' (Kyrgyzstan (sp)).

Some promising gold deposits but the country's government is highly corrupt.

PRU indirectly holds the deposits through its interest in Manas Resources.

 

[shag]

Yep, like Ivory Coast and PNG...

Their key risk asset sitting on top of a volcano nonetheless....

i don't really get this phobia about dormant volcanoes.....
i'd rather b sitting in it than try keeping alive on say the nz roads. they really need to learn how to drive, and what a motorvehicle is and what occurs when u totally missuse it.
the PIG ISLAND forests and camping grounds are much more dangerous too.
http://www.stuff.co.nz/national/politics/4270614/MP-tried-in-vain-to-save-shot-woman
http://www.stuff.co.nz/national/crime/4270774/Speed-alcohol-factors-in-girls-death

now a volcanoe ortwo going off up pig island sounds damn good to me....

 

[pedalofogus]

Nah, I was thinking more of one of the ex-Soviet nations ending in 'stan' (Kyrgyzstan (sp)).

Some promising gold deposits but the country's government is highly corrupt.

PRU indirectly holds the deposits through its interest in Manas Resources.

You sound as though you think corruption is a bad thing. But some may see that as a opportunity............... 'oh no! i have dropped this massive bag of money in your office......and as a result of the shock you have accidentally signed the mining application for my mine in that pristine piece of rainforest'

 

[Sean K]

You sound as though you think corruption is a bad thing. But some may see that as a opportunity............... 'oh no! i have dropped this massive bag of money in your office......and as a result of the shock you have accidentally signed the mining application for my mine in that pristine piece of rainforest'

Yep, there may be some advantages in a corrupt country where the competition and labour laws are a little suspect. Ivory Coast has had some significant issues recently, but LGLs operations seem to keep ticking over there. Likewise Lihir Island, which is a massive boon for the local people, while at the same time LGL got a swag of gold out of it. The locals a probably in two minds. They must be making a killing on the royalties now for doing absolutely nothing (vis a vis any aboriginal community in the Pilbara etc....), yet probably wish they could have developed it themselves. Obviously no chance of the later, so take those royalties JBs!

Back on to the takeover options for PRU, I am thinking that they are taken over by someone else considering their history of selling out of stuff.

 

[McCoy Pauley]

You sound as though you think corruption is a bad thing. But some may see that as a opportunity............... 'oh no! i have dropped this massive bag of money in your office......and as a result of the shock you have accidentally signed the mining application for my mine in that pristine piece of rainforest'

Or you end up with a licence renewal application that goes ignored by the government for 12+ months like what happened to BHP.

And you should really read up on Securency if you think that graft and corruption is good business practices.

 

[Sean K]

Or you end up with a licence renewal application that goes ignored by the government for 12+ months like what happened to BHP.

And you should really read up on Securency if you think that graft and corruption is good business practices.

Yep, there have been several companies recently been smashed by local government irregularities particularly in Africa. Pay the fee.....

 

[Sean K]

ooooops, I think I sold this for a very nice profit around $1.50. ouch.



Really should have backed continued QE and expected gold to keep running. Seems like I jumped ship just as it left the station.

Oh dear.

 

[Buckfont]

ooooops, I think I sold this for a very nice profit around $1.50. ouch.



Really should have backed continued QE and expected gold to keep running. Seems like I jumped ship just as it left the station.

Oh dear.

Kennas I know what you mean. Bought Beadell (BDR) at 0.21c sold at 0.28c. Today at 0.58c. I`ll have to remember the old adage `double your money and then sell half,` or is that old hat?

 

[Sean K]

Looks like a pretty positive FS out on Ivory Coast. Into production late 2012. Destined to be a multimine operator at $500 an ounce ish opex. Payback will be pretty short if POG keeps above $1000 an ounce.

Probably destined to be taken over shortly too. Why no one bought them when they were back at $1.00 ish is beyond me.

 

[prawn_86]

Probably destined to be taken over shortly too. Why no one bought them when they were back at $1.00 ish is beyond me.

It's an inefficiency with our system. A company gets large by taking calculated risks, but when it is large it is too cumbersome and has too many sectors to answer too, so therefore can't take the 'risks' it used to and can only do takeovers that are a 'sure thing' which end up being anything but...

 

[TabJockey]

Anyone suspect that the SP drops of late are related to uncertainty of the POG?

 

[eddyeagle]

Anyone suspect that the SP drops of late are related to uncertainty of the POG?

I would put it down to weakness across global stock markets, weakness in POG (has dropped more than 5% in a short space of time), Macquarie selling down, general profit taking etc.

I will be looking to take advantage of the price weakness at some point in the near future.

 

[Sean K]

2010 was pretty average for PRU compared to 2009 I suppose.

MC is around the $1.3b now I think which seems like a lot for an explorer with some time to go to real production and their number 2 deposit in a country about to go to war.

Long term trend consistently up and coming up to some resistance for a potential breakout.

Would have to think that with the world still on it's knees that line will break and it'll continue on it's merry way....

 

[Sean K]

Long term trend consistently up and coming up to some resistance for a potential breakout.

Would have to think that with the world still on it's knees that line will break and it'll continue on it's merry way....

A decent correction in gold turned this down, maybe with Ivory Coast looking decidedly dodgy as an excuse. Trouble in the Middle East might be what the market needs to turn things around. This correction in PRU has been quite significant and breaking down through the blue area would be a significant technical breakdown and difficult to repair.

 

[jonojpsg]

Maybe just going to fill that little gap around 2.60? Seems a long way down just to fill a gap though?? Would definitely have a sniff at them if they did drop back below 2.50

 

[eddyeagle]

Has been pretty quiet around here recently. The stock is taking a hammering too. I think those that are patient will be rewarded well with this stock.

Announcement from the end of Feb looks good. Production is not far away at all!



Perseus Mining Limited (ASX/TSX: PRU) (“Perseus”) is pleased to announce that pre-strip mining
operations have commenced at the Central Ashanti Gold Project (“CAGP”) in Ghana.
Mining will scale up over a period of six months, with the first ore scheduled to be mined in April to provide
a stockpile of ore for process plant commissioning.
With the excellent progress made to date on the process plant construction and infrastructure development,
the Company remains confident that gold production will start during the September quarter 2011.
Recent construction progress includes final preparation for the lift and assembly of the SAG mill and
ongoing installation of the 54 inch gyratory crusher.

Mark Calderwood, Managing Director’s Comments
“The commencement of mining and preparations for installation of the crusher and SAG mill are key
indicators that we are entering the final phase of implementation of the CAGP.”
“Initial mining of waste will facilitate completion of the ROM pad and assist in the tailings dam
construction. Grade control has commenced and a wide zone of ore is exposed in the floor of the Abnabna
pit.”
“Current reserves at the CAGP total 3.3Moz, with significant additional resources. The Company
anticipates further resource and reserve increases this year, and currently has eight drill rigs operating at
the CAGP.”

 

[Sean K]

This correction in PRU has been quite significant and breaking down through the blue area would be a significant technical breakdown and difficult to repair.

View attachment 41092

Well, she's held up ok and broke back pretty well from that support area.

Sideways since Aug 10.

Might take another discovery, POG through $1500, or TO to break up.