Fluctuating gold prices have led to several gold projects being shelved or mothballed but Macquarie remains confident that the economics at Fekola will hold up, irrespective of the metal price environment in the medium term. At each of the stages over the last 18 months the project has been de-risked with no areas of concern.
The Outperform rating and $1.50 price target are maintained.
Target price is $1.50 Current Price is $1.08 Difference:$0.42 - (brackets indicate current price is over target). If PIR meets the Macquarie target it will return approximately 39% (excluding dividends, fees and charges - negative figures indicate an expected loss).
The company's fiscal year ends in June.
Macquarie forecasts a full year FY14 dividend of 0.00 cents and EPS of -3.20 cents .
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is -33.75.
PIR Price at posting:
$1.06 Sentiment: None Disclosure: Not Held
