BMO Capital Markets on Tuesday reiterated its outperform rating on the shares of Eldorado Gold (ELD.TO, EGO) while lowering its price target to C$29.00 from an undisclosed prior level after the company released a technical report for the Lamaque Complex.
"ELD released a technical report for the Lamaque Complex that was slightly negative to our valuation, as we are now modeling the Lamaque Complex as per these documents. This technical report saw the Lamaque complex having a shorter mine life, lower production, and increased costs compared with our prior estimates. However, while not included in our current model, the company noted incremental production potential of 1.5Moz (~185kozpa through 2036) which could extend mine life to 17 years (2041). We maintain our Outperform rating and lower our target price to $29.00," analyst Brian Quast noted.
(MT Newswires covers equity, commodity and economic research from major banks and research firms in North America, Asia and Europe. Research providers may contact us here: https://www.mtnewswires.com/contact-us)
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