WHAT THE BROKERS SAY: Sarah-Jane Tasker | March 23, 2009

Perseus Mining (PRU)

BGF Equities

No recommendation

No price target

Last traded at 74c

GOLD continues to take the focus of most analysts and junior gold play Perseus is a favourite of BGF Equities.Analyst Warwick Grigor says the gold sector had been attracting huge investment flows over the past two months -- in excess of $1.5 billion -- as the urgency to achieve gold exposure increased.

"Share prices of leading producers have run hard and are showing interim plateaus as share issues are digested and trading profits are taken on the recent dip in the gold price," he says in his report on the stock.

"The next leg of the gold bull market will see aggressive funds come down to emerging producers as the best value category with highest leverage."

He says Perseus stands out from the emerging stocks due to the 6 million ounce resource base and its dual project growth curve, but management is under pressure.

"The share register is wide open and the corporates are eyeing off its world-class gold resources, including the largest undeveloped gold deposit in Ghana," Mr Grigor says.

"There is a race to make sure the investment community appreciates the value before predators move, inspired by outstanding fundamental value and open-ended ore bodies."

------------------------------------... hope the same is true for CEE