PRU Target Price : 70 Cents, page-435

Hi Guys,

Happy New Year to all.

Thanks Nord for your post and all the input you have provided over 2018.

As a subscriber to MSA, I have just read a report today which, in its most basic form is saying that momentum has broken out of key structures (gold and GDX/J) and price is likely to follow to the upside over the coming months.

We are in a seasonally strong period for gold (5 of last 7 years have been positive from late Dec to PDAC) and Q4 reports should be good from the mining sector (v. Q3) due to falling oil prices and rising gold prices.

I have recently established a position in PRU once again due to what I think may be tailwinds emerging for the sector and the torque that PRU could possibly offer from:

- Edikan being a higher AISC mine that shifts a lot of dirt
- Confirmation that Sissingue has ramped up successfully
- Confirmation of no dilution for development of Yaoure
- Exploration success increasing R&R and extending what is otherwise shortish LOM's

- PRU is generating good FCF now and strengthening their balance sheet
- Market sentiment towards PRU is still a bit iffy ... and not unjustified either. Achieve the above and this will shift.

I am not a huge fan of GQ but I do acknowledge that PRU is turning itself around and, if MSA is correct and the gold sector is finally breaking out (to be confirmed by prices later) then PRU is well positioned for a risk tolerant investor.

Cheers
John