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Perseus Mining's Working Capital Tightening -- Market Talk

29 Jan 2017 9:07 pm

2108 GMT [Dow Jones] Perseus Mining's (PRU.AU) weaker outlook for gold production from its African operations has Canaccord Genuity pondering its cash position. Perseus has flagged 2H production of 90,000-110,000 troy ounces, down from prior guidance of up to 145,000 oz and below Canaccord's 123,000 oz forecast. "The downgrade to 2H guidance negates our previous turnaround expectations, which were a key part of our investment case," Canaccord says. It expects negative cash flow again in the March quarter. "But we note such (working capital) tightness could be alleviated by an upsized debt facility, which is reportedly nearing finalization," Canaccord says. It drops Perseus to speculative buy from buy, and lowers its price target by 13% to A$0.65/share. PRU last traded at A$0.36. (david.winning@wsj.com; @dwinningWSJ)

(END) Dow Jones Newswires

January 29, 2017 16:07 ET (21:07 GMT)

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