Kerryman,
some may say your $15 is wishful thinking, but it pays to take a look at what value the little blighters are worth.
The recent takeover offer for Redback is the benchmark; Redback is a producer in Ghana with reserves and resources of 10 million ounces. The takeover offer is worth CAD7.5 billion.
PRU has 7 million ounces in reserves and resources and is about 15 months away from commissioning (by the way, there are new pics of CAGR on the website).
Discounting PRU a third for the smaller reserves, and then 50% of the result would give us a valuation of $7 - $8 per share, currently, rising to $12 - $13 per share on commissioning. This wouldn't take in to account any new discoveries or updated resource statements.
Yes, yes, this valuation isn't detailed or highly scientific, but it's a useful yardstick to use to understand how PRU stands in relationship to the only other West African goldie in their league. I shall continue to hold.
take over target?, page-9
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Last
$2.69 |
Change
0.070(2.67%) |
Mkt cap ! $3.701B | |||
| Open | High | Low | Value | Volume |
| $2.69 | $2.70 | $2.65 | $8.808M | 3.282M |
Buyers (Bids)
| No. | Vol. | Price($) |
|---|---|---|
| 1 | 7462 | $2.68 |
Sellers (Offers)
| Price($) | Vol. | No. |
|---|---|---|
| $2.69 | 30534 | 1 |
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| Last trade - 16.10pm 11/10/2024 (20 minute delay) ? |
| PRU (ASX) Chart |