Fair call nordsemic, I'd be interested to get your take on the full Ann and webinar.
Meyas Sand has obviously created a bit of a production shortfall over the next 2-3 years. Jeff clearly wanted to get on the front foot here to demonstrate that Nyanzaga will eventually allow PRU to reach the 500koz pa threshold once again.
Next couple of years will be tricky to navigate, Nyanzaga and CMA ug capex to be sunk, with no obvious trick shots up their sleeve. Jeff has publicly stated that PDI currently looks expensive, and I get the impression that he's comfortable with maintaining an 18% holding.
PRU should still be able to generate $US 140-150M free cashflow per quarter, even with AISC increasing and a lower production profile for the next couple of years, wildcard being the gold price.
I'm neutral on the Ann, but demonstrated free cashflow generation could open the door to future M&A activity within two years, if the price is right.
PRU Price at posting:
$3.86 Sentiment: Hold Disclosure: Held
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(20min delay)