Perseus Mining stock set for gains with competitive AIC and strong asset base

On Monday, UBS initiated coverage on Perseus Mining Ltd (PRU:CN) (OTC: PMNXF) stock, assigning a Buy rating and setting a price target of Cdn$2.65. The firm’s positive stance on the gold sector has influenced its outlook on Perseus Mining’s prospects, particularly highlighting the company’s portfolio of assets in Africa.

Perseus Mining’s production profile is expected to average around 500,000 ounces per annum at a competitive All-In-Cost (AIC) of approximately US$1,600 per ounce over the remainder of the decade. UBS’s confidence in Perseus Mining has been bolstered by several recent developments, including a site visit to the company’s flagship Yaouré mine in Côte d’Ivoire.

Additionally, Perseus Mining’s acquisition of the Nyanzaga project in Tanzania and a stake in Predictive Discovery (NASDAQ:)’s Bankan project have contributed to a more favorable view of the company’s growth potential. UBS’s analysis also takes into account Perseus Mining’s announcement of a A$100 million buy-back program, which is expected to run alongside the company’s dividend distributions.

The company’s strategic moves and the underlying strength of its mining operations are key factors that have led to UBS’s optimistic assessment. The price target of C$2.65 per share reflects UBS’s expectations for Perseus Mining’s performance and its position within the gold mining industry.

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