The tragic and serious security incident near the Boungou mine in Burkina Faso has resulted in a number of fatalities and injuries to PRN’s and SEMAFO’s workforces. The mine’s operations have been suspended. While Boungou in isolation is not material to the PRN group, this incident is of a scale that has broader regional and national implications. Total revenue exposure to Burkina Faso in FY19 was a more meaningful ~A$250m, and we believe it appropriate adjusting our recommendation to HOLD (prior BUY) until PRN has had time to provide a more considered response. To reflect the heightened uncertainty, we also pare back our valuation to $2.20 (prior $2.40).
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