PRU’s 2QFY25 result was strong with 132.4koz produced, up 9% QoQ and a 6% beat on our estimates. A lift in head grades at Yaouré by 16% QoQ was the primary driver behind the stronger production result. PRU sold 136.6koz during 2QFY25 at an AISC of US$1,127/oz, slightly lower than our estimates. PRU expects to deliver an updated Life-of-Mine-Plan (LOMP) across its portfolio in the June quarter. The LOMP will incorporate for the first time the CMA Underground and Nyanzaga. Mine life additions at Edikan and incremental extensions to Sissingue are anticipated. We have incorporated anticipated Edikan Mine life extensions into our base case, extending Edikan production from FY27 out to FY30. Spot gold price increases and mine life extensions lift our Price Target from $3.60 to $4.00 with a BUY recommendation maintained.
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