PERSEUS MINING LIMITED (ASX: PRU)

Positive progress at Yaouré: Up 5.3% on January 03, 2018 at the back of strength in gold prices, West African gold producer, Perseus’ Sissingué Gold Project has been slated to have first gold in the March 2018 quarter and the group has completed a positive Definitive Feasibility Study for the Yaouré Gold Project in November 2017. The group has also filed an NI 43-101 -compliant Technical Report with Canadian regulatory authorities in the above regard. The DFS outcome had indicated Yaouré to be economically attractive with Internal Rate of Return of 27% and a 32-month payback period at US$1,250. The project is also highlighted to be having a 3.3MTPA plant with average annual gold production of 215,000 ounces at an AISC of US$734/oz for first 5 years and has the potential to be extended beyond current 8.5 -year mine life through near-pit drilling and successful exploration of surrounding land package.

PRU has been implementing a growth strategy to transform itself into a 500,000-ounce per year gold producer with three operating mines in West Africa by 2020. The group looks to leverage the opportunities and has immense potential going forward. Further, gold production for the group for the year ended 30 June 2018 is forecasted to be in the range of 250,000 to 285,000 ounces at an all-in site cost of US$950/oz to US$1,100/oz. Given the above, we put a “Buy” at the current price of $0.40


Pit Designs (Source: Company Reports)
 

BEADELL RESOURCES LIMITED (ASX: BDR)

Certain shortcomings while long-term potential remains intact: Up 11.8% on January 03, 2018, Beadell Resources is another gold play of significant potential. While the group has highlighted to have annual production below its previous guidance owing to short-term deferral of high grade ore of >2g/t gold from late December 2017 into early January 2018 due to minor operational factors, its Tucano mine gold production for the December quarter were indicated to be approximately 50,000 ounces of gold, which will be Tucano’s fourth highest production quarter and the highest since 2014. The plant upgrade project is still on track in terms of time and budget with commissioning expected mid-2018. Given the scenario, the gold prices are still expected to boost the stock momentum despite the near-term shortcomings. We have a “buy” recommendation at the current price of $0.19

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