Peter Hambro Mining’s interim results have confirmed it is on course to meet its near-term production targets. In combination with revised mining schedules for two of its other assets, Albyn and Yamal, this has caused us to revise our fundamental valuation of the company upwards by 15% in US dollar terms, to US$9.06 per share, and by 8% in sterling terms, to 549p per share. It is therefore apparent that shareholders are already discounting greater longevity than that implied by the company’s officially declared reserves. This being the case, there is still scope for the shares to rise beyond current levels in advance of fully-diluted earnings peaking at an estimated 173 US cents (105p) per share in FY2012.

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