Perseus Mining ‘s June quarter featured sales and costs 13% and 4% better than Macquarie’s forecast but production -6% lower. First half FY21 guidance is below expectation, although management cited conservatism in the face of covid, given growing case-counts in operating countries.
Otherwise, commentary suggests first production at Yaoure may be sooner than the broker assumed. On recent share price strength the broker downgrades to Underperform from Neutral. Target unchanged at $1.25.
Sector: Materials.
Target price is $1.25.Current Price is $1.46. Difference: ($0.21) – (brackets indicate current price is over target). If PRU meets the Macquarie target it will return approximately -17% (excluding dividends, fees and charges – negative figures indicate an expected loss).
