Perseus Mining remains a top pick in Canaccord’s September quarter precious metals recap


Perseus Mining Ltd (ASX:PRU, TSX:PRU, OTC:PMNXF) has remained the top pick amongst intermediate and junior gold producers in Canaccord Genuity (TSX:CF, LSE:CF)‘s September quarter precious metals recap.

The company had previously retained its buy rating from Canaccord at a A$2.10 price target in the latest performance note from the financial services firm.

Canaccord said although the group’s production metrics were underwhelmed in the September quarter, all-in sustaining costs (AISC) were a bright spot on the balance sheet.

Positive momentum

Canaccord expects Perseus to maintain positive momentum into the December quarter with strong production and cost performance at Yaoure Gold Project in Cote d’Ivoire.

“Confirmations of mine life extensions at Sissingue and exploration results at Edikan and Yaoure are pointing to medium to longer-term upside potential.”

Promisingly, Perseus remains a standout, in Canaccord’s view, noting its sector-leading FY22E FCF yield of greater than 25%.

The company’s shares have today traded up to A$1.64 while the market cap is approximately A$1.939 billion.

Quarterly update

Perseus achieved another quarterly gold production record with 112,786 ounces of gold produced in the September quarter, up 10% from June quarter and 28% on March quarter of this year, on the back of strong production at its Yaoure mine in central Cote d’Ivoire.

The company has also committed to robust Environmental, Social and Governance initiatives, especially in regard to protecting the environment and delivering local employment, education and enterprise.

Perseus is a rapidly growing West African gold explorer, developer and producer. The company operates three mines (Yaoure, Sissingue, and Edikan) and expects annual gold production to reach more than 500,000 ounces per year by 2022.


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