Value Microcaps Junior Miners

[dr_airtime]

PRU.TO - new LOM Plan. Deja Vu? Still banging the table?

LOM AISC of USD $865M for next 7.5 years of Edikan. Pre-tax NPV10% @ $1200 gold of USD $287M.

A bit tricky but just wait: Working capital of AUD $160M @ 31-Dec-15 or $USD 125M. Market Cap today of CAD $262M or USD $206M. This equates to an enterprise value-to-acquirer approach of just USD $81M (MC less working capital) compared to the NPV10% above of USD $287M.

What is not to like here? Way undervalued on current operating Edikan mine, plus you get two Cote d'Ivoire prject Yaoure (from Amara Merger - 62MT @ 1.6g/t for 3.2M P&P ounces) and Sissingue (5.5MT @ 2.4 g/t for 0.5M P&P ounces)

Also - that USD $125M of working capital includes USD $75M of cash. That is going to a long way to helping to debt finance their next mine Yaoure.

Finally - there are probably at least 10 corporate development analysts somewhere in the world today crunching those same numbers as me and thinking "crap, our company's share price is through the roof and Perseus as trading at a ridiculously discounted value". Endeavour, IAMGold, African Barrick. etc.

Also - Perseus has about 150k of future production hedged around $1250 but that doesn't mean market won't value PRU higher with core shareholders then lobbying to take off hedges.

Feels just like December 2013 when I was loading up on TGZ.TO after TGZ-Oromin merger and then they announced a similar low-AISC LOM Plan.