Australian gold miner, Perseus Mining (ASX:PRU) shares rose as much as 7% by afternoon, after the company announced it had completed an asset sale deal with Mako Gold Limited (ASX:MKG).
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The deal involved Perseus’ stake in the Ivory Coast-based Napié Gold Project, which sees Mako Gold increase its holding in the project to 90%, with African American Investment Fund holding the remaining 10%. In exchange, Perseus becomes a strategic shareholder in Mako Gold, with a stake of about 3%.
Perseus also announced its September quarter results, reporting an increase in gold output, and a decrease in production costs – ending the quarter with around US$329 million in net cash.
In addition to the Ivory Coast, Perseus also has projects in Ghana and Sudan. The company aims to be producing 500,000 ounces of gold annually, and it hopes to hit that target this year.
Perseus Mining share price forecast
According to TipRanks’ analyst rating consensus, Perseus Mining stock is a Strong Buy. The average Perseus Mining share price forecast of AU$2.07 indicates nearly 20% upside potential.
Insiders are showing confidence in Perseus Mining stock, as the company cuts strategic deals and boosts its production. TipRanks’ Insider Trading Activity shows that Insider Confidence Signal is currently Positive on Perseus. The company’s insiders, such as directors and executives, have purchased about AU$68,000 worth of shares in the past three months.
