broker valuation - part 2, page-6

Perseus Mining (ASX/TSX: PRU)

Perseus announced a net profit after tax of $32.497 million or 6.16 cents per share for the six-month period ended 31 December 2012.

Forecast gold production for the second half of FY2013 at the Edikan Gold Mine in Ghana is 105,000 ounces to 125,000 ounces at a cost of $755/oz (excluding royalties, capital and exploration). Full financial year forecast production is now 208,700 to 228,700 ounces at $645/oz.

Perseus also announced that 17,498 ounces of gold were produced at Edikan in January 2013.

A conference call with Managing Director Jeff Quartermaine and Chief Financial Officer Elissa Brown occurred following the half-yearly results. Click here to listen to the broadcast.

Canaccord-Genuity analyst Reg Spencer maintained his Buy rating with a $3.50 price target following the release of the results. Click here to read his updated report.

Daniel Seeney from Citi Equities said “PRU offers compelling value at current levels and is rated Buy with a $2.50/share target price.” Click here to view Citi’s full report.

Jo Battershill from UBS kept his Buy rating and $3.50 valuation. “Applying spot prices to PRU’s growing output profile places it on an undemanding earnings multiple for FY14 and a low P/NPV multiple of 0.46x.”

Canadian-based Fraser Mackenzie: “Overall the news was neutral to our view and valuation. We continue to rate Perseus mining as a Top Pick with a $3.00 per share target price.”

The average 12-month target price for the 17 Australian analysts who cover Perseus is $2.74. Twelve analysts have Buy or Outperform ratings and five have Hold or Neutral ratings. In Canada, the four analysts who cover the company all have Buy ratings for an average target price of C$3.41.

Jeff Quartermaine will be presenting this week at the BMO Capital Markets Global Metals & Mining Conference in Florida.

From NWR