PRN will continue operating its contracts in lower risk regions in Burkina Faso, but will not renew the Bissa contract with Nordgold, and will potentially terminate the Boungou contract with SEMAFO. The latter two contracts are not considered material to NPAT guidance, and the gear potentially released would have a positive impact on free cash flow. Given other Surface Mining contract wins recently, at this point we leave forecasts unchanged. We expect PRN to manage its risks, and although these are heightened in certain locations, we believe size and diversity mitigate this to a degree. Uncertainty is more than factored into the share price in our view, and we upgrade to BUY (prior HOLD).
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