PRU - Perseus Mining

[mullokintyre]

Perseus has lobbed a full bid for Orecorp
From Evil Murdoch press

Perseus Mining plans to make an off-market takeover offer for the shares in gold developer OreCorp it does not already own.

Stepping up its battle with Canadian miner Silvercorp Metals for OreCorp, Perseus says it will offer 55c cash per OreCorp share in a bid that values the target at $258m.

It says its offer is a 4 per cent premium to the value of Silvercorp's offer and the conditions are materially the same, including being conditional on a 50.1 per cent acceptance. Perseus currently owns 19.9 per cent of OreCorp.

"Perseus has put this new offer directly to OreCorp shareholders on the basis that it represents a compelling opportunity for the shareholders of both OreCorp and Perseus," Perseus executive chairman and chief executive Jeff Quartermaine says.

"The acquisition of OreCorp’s shares aligns with Perseus’s growth strategy of building an asset portfolio comprised of geopolitically diverse, high-quality gold assets located on the African continent.

"At the same time, this offer is demonstrably superior to the Silvercorp takeover in terms of price, based on recent Silvercorp trading, and in terms of consideration certainty, being an all cash. In other words, it would ensure that OreCorp’s shareholders receive full value and certainty for their shares in OreCorp."

So now we know what they were up to, and some of the uncertainty was removed.
Markets hate uncertainty, so SP for PRU, which I own, is is up2%
No guarantee it will happen of course, Silvercorp may come back with a better offer.
Hope for the Oreorp shareholders they do.
As a PRU shareholder, don't really like it.
Mick

 

[Sean K]

Perseus has lobbed a full bid for Orecorp
From Evil Murdoch press

So now we know what they were up to, and some of the uncertainty was removed.
Markets hate uncertainty, so SP for PRU, which I own, is is up2%
No guarantee it will happen of course, Silvercorp may come back with a better offer.
Hope for the Oreorp shareholders they do.
As a PRU shareholder, don't really like it.
Mick

Not sure what's taken them so long. They should have done this about a year ago when they knew Sudan was in the composter.

Not much extra for ORR holders so I'm not disappointed I bailed some time ago.

I was hoping PRU would go to Guinea though...

 

[mullokintyre]

Pru quarterly out.
some good bits.
Production costs fell marginally in the december half.
Total production in the top end of guidance figures.
lots cash and bullion
The bad bits.
Total guidance for next year down with AISC up.
Wasting a lot of the cash they have on Orecorp.
Mixed bag.
Mick

is

 

[mullokintyre]

Half yearly out, all the figures going in the right direction.
And yet it still went down in the mrket, along with all the other giold stocks.
Tough goig thos investing sometimes.
Mick

 

[Sean K]

I don't think the Akyem acquisition has been advertised before. Hmm

TH required.

 

[mullokintyre]

Perseus determined to get Orecorp.
Have revised their offer again to 57.5 cents.

Mick

 

[mullokintyre]

 

[mullokintyre]

PRU have now declared their offer for ORR as unconditional having now achieved their 50.1% ownership.
Looks like its all over, question is what will Silvercorp do with their holding= take a small profit or hold on ?
Mick

 

[mullokintyre]

Silvercorp have accepted the PRU offer for Orecorp.
Its all over.
Mick

 

[Sean K]

Silvercorp have accepted the PRU offer for Orecorp.
Its all over.
Mick

Now PRU need to buy PDI or WAF for 50% over the VWAP...

 

[mullokintyre]

Now PRU need to buy PDI or WAF for 50% over the VWAP...

Noooooooo!
Mick

 

[mullokintyre]

Reading latest PRU qquarterly, and except for the stupi hedging is going allright.
Pru should fairly easily swallow ORR At its $270 odd mill valuation.
they currently have 700 mill in the bank, with unused borrowings on the sidelines
You might get your wish @Sean K , but perhaps a little later in the cycle.
mick

 

[mullokintyre]

PRU hits an all time high today.
Have no idea why, perhaps there has been some leakage of the quarterly report that should show some significant cash generation.
May it just keep right on going.
Maybe it should buy PDI @Sean K , PDI has been going nowhere.
Mick

 

[Sean K]

PRU hits an all time high today.
Have no idea why, perhaps there has been some leakage of the quarterly report that should show some significant cash generation.
May it just keep right on going.
Maybe it should buy PDI @Sean K , PDI has been going nowhere.
Mick

It's a sea of green out there today. Not sure if anyone is going to buy PDI unless they have a cousin in the Ministry of Mines and Environment in Guinea.

 

[mullokintyre]

Took some PRU off the table today, been a good run up, over 40% profit is too good to pass up.
Hope I can buy them back cheaper in the nust run down.
Mick

 

[mullokintyre]

Listening to BTL nd his take on PRU.
His concern is the mine life going forward.
The chart below shows a bit pf a drop off, with edikan having a drop off within the next nine months.
Sisingi will quitely bubble along, but perhaps the goos days are now past until they fibnalise the next leg up.
The CMA is an underground mine where costs always seem to creep up.

Below is his take on production over the next few years.
Might think about moving the rest of my invesment out of this one over the near term.

Mick

 

[mullokintyre]

PRU annual out, and some good bits are the
USD1.02 billion in revenue
USD 429 Mill in net cash generated,
USD 587 in met cash and bullion on hand with nil debt.
The investments in PDI has increased in value.
The down side is the paltry return to shareholders in 2.1% dividend.
And finally, the bit I dislike most, is the USD100mill share buyback.
Lazy balance sheet then return money to shareholders, don't do buybacks.
Sold some today, will offload more over the next few weeks if the SP increases.
Been a good ride, but I think the best money has been made.
Mick

 

[Sean K]

PRU annual out, and some god bits are the
USD1.02 billion in revenue
USD 429 Mill in net cash generated,
USD 587 in met cash and bullion on hand with nil debt.
The investments in PDI has increased in value.
The down side is the paltry return to shareholders in 2.1% dividend.
And finally, the bit I dislike most, is the USD100mill share buyback.
Lazy balance sheet then return money to shareholders, don't do buybacks.
Sold some today, will offload more over the next few weeks if the SP increases.
Been a good ride, but I think the best money has been made.
Mick

I agree on the best money point for a lot of gold stocks. The time to get in was when the gold equities were hated a year of two ago. GDXJ was at $26 at one point and it's almost $50 now. There's still plenty of upside if gold gives us a little more and there's no general implosion but a lot of the easy money has been made. Unless POG goes to $10k of course.

 

[mullokintyre]

PRU has appointed an Independent Chairman, with Geoff Quatermains returning to his role as CEO.
Happy with that, always wary of dominant CEO's who also chair the board.
Won't make a lot of difference to my sell plans though.
Mick

 

[mullokintyre]

PRU is Macquarie's preferred smaller cap goldie.
Mick

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