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Perseus Mining named “top pick” by Cannacord

Perseus Mining Ltd remains in favour with Cannacord, which two weeks ago lifted its target price to A$2.00 based on upgraded FY22 estimates and potential for mine life extensions at Sissingue.

Perseus is an African gold producer operating three mines in West Africa with the aim of annual production of 500,000 ounces. Sissingue in northern Cote d’Ivoire produces between 70,000 and 100,000 ounces of gold annually at an AISC of around US$760 per ounce.

Perseus – a top pick

Cannacord doubled down on its support for Perseus this week, tweeting “We continue to see @PerseusMining as a sector standout, noting expectations for strong FCF generation and potential for capital management initiatives.”

Canaccord reiterates $PRU as a top pick in its intermediate/junior #gold producer category in FY21. The analyst estimates FY21 EBITDA of A$287 million (VA A$267 million) and NPAT of A$102 million (VA cons A$88 million) for FY21. There is risk in its estimates associated with capitalisation of costs/expenses prior to declaring commercial production at Yaoure.

“We forecast a +50% YoY increase in production to 498koz in FY22, alone with a 9% incline in AISCs to US$923/oz,” Cannacord reported.

“We continue to see PRU as a sector standout, noting expectations for strong FCF generation and potential for capital management initiatives.”

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