facts speak for themselves

CHARTS.

3 MONTH TREND
PERSEUS MINING LIMITED lays in the lower part of a wide and strong rising trend on short term, and this will normally pose a very good buying opportunity. A break down the bottom trendline at AUD 0.45 will in first place indicate a slower raising rate, but may as well be a early warning for a trend shift. Given the current short term trend the stock is expected to rise 18.6% during the next 3 months and with 90% probability hold a price between AUD 0.53 and AUD 0.65 at the end of this period.


LIKE its Greek hero namesake, Perth-based Perseus Mining is not one to mess around. Recently cashed up from a share placement at 40¢ a share and the sale of its Monaro Mining investment, Perseus plans to spend some $700,000 a month on exploration at its two West African gold projects and its Kyrgyz Republic gold play.

No other exploration company with a $40 million market capitalisation spends anywhere near that sort of money on the hunt for the yellow stuff. But then not every $40 million company has the sort of ambition that Perseus and its shareholders - including Macquarie Bank with 10.4 per cent - have set in play.

Perseus wants to have a 3 million-ounce resource across its three key projects in the bag by March. It already has 2 million ounces to hand - a cache that the market is valuing at just $US18 an ounce, or less than half the going rate for overseas projects in this market.
So the planned march to 3 million ounces in itself could have interesting valuation
impacts on the stock. But potentially more interesting will be the advance of the three projects through the pre-feasibility/full feasibility study stages.

Apart from signalling the group's move towards production status, the advance towards mine development is also likely to trigger interest from any number of the increasingly growth-hungry gold majors looking to lock in some sure-fire growth. Should Perseus' projects continue to advance as planned, any merger and acquisition activity surrounding the corporate entity or individual projects won't be happening at $US18 an ounce, that's for sure.