PRU chart, page-410

Over the past 12 months, PRU has pretty much underperformed the POG. I think this was due to the market's caution as to what they were spending their cash on. The latest move in March was mostly just removing that discount.



Interestingly, this is essentially assigning no value to the equity to outperform the POG. Which we can see, $PRU has done spectacularly through AISC control, replacing resources and conservative use of capital over the past 5 years:


Therefore, depending on how they go in Tanzania (and a multiple number of other factors) - I believe there is further torque for the company to outperform the POG.

The only item in retrospect is frustrating - is their hedge book - whichI believe will be a hot topic of discussion over the next 12 months. However, this speaks to the conservative nature of Perseus, which I believe is one of only a few gold miners to produce more FCF than what has been sunk in the ground and have stated that they are there to live through cycles.

As for capital returns - PRU have a strong understanding of their balance sheet and I trust their judgement on the use of cash.