Perseus Mining (PRU:TSE) Fundamental Valuation Report

Fundamental Valuation Report

Perseus Mining(PRU:TSE)

Basic Materials:Gold

This Report was generated using the valuation tools available on StockCalc.com. For a free 30 day trial click here.

–Close Price/Date
0.37 (AUD) / $0.35 (CAD) 02/11/2018

Weighted Valuation
0.43 (AUD) / $0.41 (CAD)

Use a conversion rate of 0.94193 from AUD to CAD.

Overall Rating
Undervalued by 16.4%

Valuation Models	Analyst Consensus: 0.46 (AUD) / $0.44 (CAD)
(in order of importance)	Comparables: 0.42 (AUD) / $0.40 (CAD)
	Multiples: 0.36 (AUD) / $0.34 (CAD)

Valuation Methods	This company is:
Cash Flow:	Overvalued on a Cash Flow Valuation
Comparable Company:	Undervalued on a Comparable Valuation
Asset:	Overvalued on an Asset Valuation

Company Overview (PRU:TSE CAD)

Price	0.00
Range	0.00 – 0.00
52 week	0.00 – 0.00
Open	0.00
Vol / Avg.	0/0
Mkt cap	0
P/E	0.00
Div/yield	0.00/0.00
EPS	0.00
Shares	0
Beta	0.00

Company Description

Perseus Mining Ltd is engaged in the exploration, evaluation, development, and mining of gold properties in West Africa. The company projects are Sissingue Gold Mine, Edikan Gold Mine in Ghana, and Yaoure Gold Project.

Valuation Details

We have up to 6 valuation points for each company. Details are at the bottom of the report.

Discounted Cash Flow and Sensitivity Analysis for PRU:TSE

Using a discounted cash flow model we generated an intrinsic value of -0.65 (AUD) / ($0.61) (CAD) for PRU:TSE

Comparables Model

Using similar companies and price based ratios we generated a valuation of 0.50 (AUD) / $0.47 (CAD) for PRU:TSE. We also generated a valuation of 0.42 (AUD) / $0.40 (CAD) using other metrics and comparables.
The comparable companies were Golden Star Resources (GSC:TSE), Gold Standard Ventures (GSV:ASE), Premier Gold Mines (PG:TSE), Sabina Gold & Silver (SBB:TSE) and Teranga Gold (TGZ:TSE).

Company PRU:TSE	End Date Value
Earnings/Share	-0.03 (AUD) / ($0.02) (CAD)
Book Value/Share	0.68 (AUD) / $0.64 (CAD)
Sales/Share	0.36 (AUD) / $0.34 (CAD)
Cash Flow/Share	0.07 (AUD) / $0.06 (CAD)
EBITDA/Share	-0.02 (AUD) / ($0.01) (CAD)

Price Based on Comps	Adjustment Factor (%)
0.00 (AUD) / $0.00 (CAD)	14.1
0.80 (AUD) / $0.75 (CAD)	-37.2
0.42 (AUD) / $0.39 (CAD)	0.0
0.50 (AUD) / $0.47 (CAD)	0.0
0.00 (AUD) / $0.00 (CAD)	0.0

PRU:TSE	Ratios Used	Average Values	GSC:TSE	GSV:ASE	PG:TSE	SBB:TSE	TGZ:TSE
0.00	PE Ratio	39.30	70.73	0.00	0.00	0.00	7.86
0.53	PB Ratio	95.61	473.32	2.44	0.89	0.88	0.50
0.98	PS Ratio	1.15	0.95	0.00	1.75	0.00	0.76
5.44	PCF Ratio	8.94	10.04	0.00	13.74	0.00	3.06
0.00	EV to EBITDA	5.95	9.99	0.00	6.21	0.00	1.65

Multiples

Using a multiples approach we generated a valuation of 0.36 (AUD) / $0.34 (CAD) for PRU:TSE

Company PRU:TSE	End Date Value
Earnings/Share	-0.03 (AUD) / ($0.02) (CAD)
Book Value/Share	0.68 (AUD) / $0.64 (CAD)
Sales/Share	0.36 (AUD) / $0.34 (CAD)
Cash Flow/Share	0.07 (AUD) / $0.06 (CAD)
EBITDA/Share	-0.02 (AUD) / ($0.01) (CAD)

Price Based on Comps	Adjustment Factor
0.00 (AUD) / $0.00 (CAD)	0
0.29 (AUD) / $0.27 (CAD)	0
0.36 (AUD) / $0.34 (CAD)	0
0.43 (AUD) / $0.41 (CAD)	0
0.00 (AUD) / $0.00 (CAD)	0

Ratios	Ratio Average
PE Ratio	4.64
PB Ratio	0.42
PS Ratio	1.00
PCF Ratio	6.66
EV to EBITDA	2.13

Adjusted Book Value versus Historical Price to Book

The average the Price to Book ratio for PRU:TSE for the last 8 years was 0.39

We ran the Adjusted Book Value for PRU:TSE and generated a book value of 0.68 (AUD) / $0.64 (CAD)
By multiplying these we get an adjusted valuation of 0.27 (AUD) / $0.25 (CAD)

Analyst Data

In the Stockcalc database there are 1 analysts that provide a valuation for PRU:TSE. The 1 analysts have a concensus valuation for PRU:TSE for 2019 of 0.46 (AUD) / $0.44 (CAD).

PRU:TSE Perseus Mining

No analyst recommendation
Current Price: not available

No analyst consensus

Explanation of Valuation Models

We have up to 6 valuation points for each company in the database.

The Discounted Cash Flow (DCF) valuation is a cash flow model where cash flow projections are discounted back to the present to calculate value per share. DCF is a common valuation technique especially for companies undergoing irregular cash flows such as resource companies (mining, forestry, oil and gas) going though price cycles or smaller companies about to generate cash flow (junior exploration companies, junior pharma, technology firms…).

The Price Comparables valuation is the result of valuing the company we are looking at on the basis of ratios from selected comparable companies: Price to Earnings, Price to Book, Price to Sales, Price to Cash Flow, Enterprise Value (EV) to EBITDA. Each of these ratios for the selected comparable companies are averaged and multiplied by the values for the company we are interested in to calculate a value per share for our selected company.

We have included the Other Comparables as a way to value companies that cannot be valued using Earnings based ratios. This technique is very useful for companies still experiencing negative cash flows such as mining exploration firms. We use Cash/Share, Book Value/Share, MarketCap, 1 Year Return, NetPPE as the ratios here. Each of these ratios for the selected comparable companies are averaged and multiplied by the values for the company we are interested in to calculate a value per share for our selected company.

Multiples are similar to Price comparables where we look at current or historic ratios for the company in question to assess what it should be worth today based on those historic ratios. We use the same 5 ratios as in the price comparables and value the company with its historic averages.

With Adjusted Book Value (ABV) we calculate the book value per share for the company based on its balance sheet and multiply that book value per share by its historical price to book ratio to calculate a value per share.

If we have Analyst coverage for the company we use the consensus target price here.

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