Ivory Coast Gold Mines

According to the Yaoure DFS just released, PRUs book value just increased from 52c to 85c per share as this was not included as having any value previously with 1.52Moz with $2.0B sales revenue over 9 years mine life likely extendable to 15 years and the capital cost to build of $263M.

Below table they call it a value of 33c per share, that means Yaoure just added the entire market cap that PRU has now with no value for the other 2 mines at all!
Amazing undervaluation. As they said in the announcement -

"Yaouré is highly likely to create the significant value envisaged by Perseus when the project was studied in detail prior to its acquisition in April 2016."

• Yaouré generates attractive economics at a range of gold prices and discount rates:

	Column 1	Column 2	Column 3	Column 4	Column 5	Column 6	Column 7
0	Gold Price(US$/Oz)	IRR1 (%)	Payback(Months)	NPV5	NPV10
1	US$ m[/B]	A$/sh	US$ m	A$/sh
2	1,200	23	35	210	0.26	130	0.16
3	1,250	27	32	259	0.33*	170	0.21
4	1,300	30	30	302	0.38	205	0.26

¹ After tax, ungeared

• Yaouré is technically very robust and is based on an estimated Ore Reserve of 26.8 Mt of ore grading 1.76g/t gold containing 1.52 million ounces of gold.

	Column 1	Column 2	Column 3	Column 4
0	Technical Parameters		Annual AverageYears 1-5	Total Lifeof Mine2
1	Ore mined	Mt	4.61	26.81
2	Strip ratio	t:t	5.4:11	5.1:11
3	Ore processed	Mt	3.3	26.8
4	Head grade	g/t gold	2.27	1.76
5	Gold recovery rate	%	90.1	90.1
6	Gold production	‘000 ounces	215	1,367
7	[/B]
8	Unit Operating Costs
9	Production costs	US$/oz	670	690
10	Royalty	US$/oz	44	44
11	Sustaining capital	US$/oz	20	25
12	Average All-in site costs	US$/oz	734	759

Why were you guys so negative on this DFS as it looks excellent to me, AISC of $740 is way better than current $1208 at edikan. Its a low cost large reserves longer mine life but the upfront capital will be the issue which they say it isnt anyway.

Once Edikan & Sissingue ramp up with strong production and cashflow results next 6 months, this will become the next mine development project for PRU which they will fund from cashflows for a while like Sissingue. PRU went sideways on this news but long term its another winner and even better cheaper and bigger than Sissingue but also not far away.

The Ivory Coast mines for PRU will become a valuation & cashflow bonanza long term.