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Investing.com - JPMorgan downgraded Perseus Mining Limited (ASX:PRU) (OTC:PMNXF) from Overweight to Neutral and lowered its price target to AUD3.70 from AUD3.90.
The downgrade follows Perseus Mining’s June quarter results, which showed strong production and sales figures that exceeded JPMorgan’s estimates by 8% and 17% respectively, with costs coming in 10% better than forecast.
Despite the positive quarterly performance, JPMorgan cited concerns about the company’s fiscal year 2026 guidance, which was reduced from the previous outlook of 420-440 thousand ounces at $1,400-1,500 per ounce to 400-440 thousand ounces at $1,460-1,620 per ounce.
The investment bank also noted delays in Perseus Mining’s key development projects, including the Yaoure CMA underground development in Côte d’Ivoire and the Nyanzaga project in Tanzania, both awaiting presidential authorization in countries with elections scheduled for October.
JPMorgan revised its earnings estimates, increasing fiscal year 2025 earnings by 12% based on better sales and costs, while reducing fiscal year 2026 earnings by 7% due to the softer guidance.
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