Fairfax Media Ltd

FXJ Details
·         Two indicative, preliminary and non-binding proposals:Fairfax Media Ltd (ASX: FXJ) rallied 6.9% in trading session on May 18, 2017, after revealing about receiving a preliminary and non-binding proposal on behalf of funds affiliated with Hellman & Friedman LLC (together with affiliates, Hellman & Friedman) to acquire 100% of the shares in Fairfax with all consideration in cash at a price of $1.225-$1.250 per share. The current proposal follows the revised, indicative, preliminary and non-binding proposal from the TPG Consortium announced on May 15, 2017 to acquire 100% of the shares in Fairfax at a price of $1.20 per share. The Fairfax board has considered both the indicative proposals and has indicated to invite both Hellman & Friedman and the TPG consortium to conduct due diligence.

·         Recommendation: The stock has moved up 49.68% over the past six months while being up 16% in the last one month (as of May 17, 2017) on account of takeover bids, and is currently trading at 52-week high level. We give a “Hold” recommendation on the stock at the current price of $ 1.24

Perseus Mining Ltd

PRU Details
·         Successfully completed the current phase of drilling at Yaouré gold project: Perseus Mining Ltd (ASX: PRU) traded flat post an initial rally on May 18, 2017 at the back of gold price movement that delivered gains in the sector and Yaouré Project update. PRU has successfully completed the current phase of drilling at Yaouré gold project in West Africa and the results of the drilling will provide critical information as the Definitive Feasibility Study (DFS) at Yaouré is scheduled to be finalized in the December-2017 quarter. Importantly, Yaouré is expected to become Perseus’s third operating mine and to contribute significantly towards the company’s target of producing more than 500,000 ounces of gold from its West African mines by 2021.

·         New Mineral Resource estimate is expected to be released in August 2017: Approximately 33,700m of resource definition drilling has been completed in the proposed open pits and 12,200m of trial grade control drilling has been completed in the Yaouré pit. Further, a new mineral resource estimate for the deposits is expected to be released in August 2017.

·         Recommendation: The stock has moved up 7% in the last five trading sessions, however, it declined 45.5% over the past six months (as at May 17, 2017) owing to short fall in gold production and lower than expected grades during H1FY17 with an impact from lower gold prices. We give a “Speculative Buy” recommendation on the stock at the current price of $ 0.30

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