pru looking good

Stockbrokers back on board


Perseus Mining (ASX/TSX: PRU)

Perseus released its December 2013 Quarterly Report. The company produced 48,360 ounces of gold for the quarter and 94,190 ounces for the half-year. Perseus remains on target to reach guidance of 190-201,000 ounces for FY2014 at its Edikan Gold Mine in Ghana, West Africa.

Perseus has cash and bullion of $28.4 million, zero debt and a hedging position in the money by US$31.6M.

Following the quarterly a number of analysts released updated reports.

Macquarie Analyst Mitch Ryan said in a flash note, "The December quarterly demonstrates a step in the right direction at Edikan. We believe the recently revised LOMP for Edikan outlines a pathway to improved cash generation for the company." Macquarie maintained an OUTPERFORM rating with a $0.70/share price target.

UBS Analyst Jo Battershill: "We maintain our Buy call based on valuation. While we still believe there is value in the company’s assets given the large resource base, recent share price volatility and gold price uncertainty is likely to keep investors on the sidelines. In our view, the downside appears limited from current levels but delivery could take another year. We take comfort in key operating and cost metrics trending in the right direction." UBS has a $1.08/sh Valuation on Perseus.

Canaccord's Reg Spencer has a BUY rating and $0.48/sh price target on Perseus. "We do however take out a number of positives including a distinct trend of improving operating statistics over the last 9 months suggesting a turnaround of the operation is well on track, as well as material q/q improvements in unit costs for mining and processing" Click here to view the full report.

CIMB: "We retain our view that Perseus offers leveraged gold exposure for acceptable returns from a project that carries relatively low technical risk. We expect the company to build on its progress and deliver a stronger performance in 2HFY14." Analyst David Coates has an ADD valuation and $0.66/sh price target on Perseus.

Foster Stockbroking issued a note on Perseus, maintaining its BUY rating and $0.60/sh price target. "We highlighted the stock as a major turnaround play a few weeks back and since then it has rallied from $0.27/sh to $0.39/sh. We continue to consider it to be the best of the suite of ASX small-mid cap gold producers," Analyst Mark Hinsley said.

Argonaut Analyst Patrick Chang maintained a BUY recommendation and $0.65/sh target."With performance at Edikan improving, the stock offers high leverage to the gold price without a stretched balance sheet." Click here to access the full report.