PRU – Citi rates the stock as Buy

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Perseus Mining has, in the opinion of analysts at Citi, released a “solid” March quarter production report. Gold output was pretty stable, while costs (AISC) fell by no less than -19%. A financing agreement for the development of Yaoure further supports the analysts’ growing optimism.

On the back of all these encouraging achievements, Citi¬†maintains the Buy/High Risk rating, while lifting the price target to 60c from 55c. The analysts point out the gold miner is on track to meet FY19 guidance of 271-291koz at cost of¬†US$925-1000/oz; this compares with Citi’s forecasts of 279koz at US$943/oz.

Sector: Materials.

Target price is $0.60.Current Price is $0.45. Difference: $0.15 – (brackets indicate current price is over target). If PRU meets the Citi target it will return approximately 25% (excluding dividends, fees and charges – negative figures indicate an expected loss).

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