PRU fell the most in 5 months on Wednesday, although its 8.4% move was better than many in the sector. In February, the miner delivered its 1H numbers which the market took in its stride: Revenue of $US582mn was up 19%, and NPAT of $US178mn was up 23% year-on-year. At the same time, the miner confirmed production guidance of 469-504,000 ounces at an AISC of $US1250-1280. PRU does hedge forward production, but only up to 30%, hence there is plenty of room for the stock to swing around with the underlying gold price.
- We like PRU back around $3, or 10% lower.
MM is bullish towards PRU medium term
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