Perseus Mining Limited (PRU-T)

It is low grade and they have had issues getting it to make money. It probably won’t make a lot of money ever unless the price of gold goes up.

Stock is priced as though they had no exploration projects, which he thinks is a mistake. It seems too cheap. They did a reasonable job of handling their severe operating difficulties. Company has done a very good job of operating politically and socially in West Africa. Thinks political risks here are overstated.

Good deposit in Ghana and a well-run company. Thinks the deposit grows and they have another deposit in the Ivory Coast that is high-grade and will make money as well. Thinks this is something that should be acquired by a larger company.

Mines in different parts of Africa. Cash flow positive. Trading at very cheap valuations. Feels it is a fantastic stock to own. There is still a lot of hesitation because of it being in Africa. Wouldn’t be surprised to see it get taken out.

(Top Pick Sep 30/11, Down 21.75%) Not far off it’s pier group. Still likes the company. Nothing wrong with it. It would make a good takeout candidate.