RBC Starts Argonaut Gold at Outperform2021-06-02 10:14:23 AM ET (MT Newswires) 10:14 AM EDT, 06/02/2021 (MT Newswires) -- RBC Capital Markets analyst Wayne Lam initiated coverage of two Toronto Stock Exchange-listed gold companies - Argonaut Gold Inc. (AR.TO) with an Outperform rating and $4.25 price target, and Equinox Gold Corp. (EQX.TO) with a Sector Perform rating and $14 price target.
Lam said Nevada-based Argonaut's Magino project in Ontario "will help transform the company by adding a long-lived, lower cost asset within a Tier I jurisdiction with interesting longer term exploration upside."
The analyst said his Outperform rating reflects "significant production growth ahead driven by impending output from Magino, exploration upside across the platform, and attractiveness as a potential target for M&A."
Lam said Vancouver-based Equinox plans to expands production to more than one million ounces in the next few years, "providing the company with potential for a peer leading growth profile."
"However, we remain on the sidelines given construction risk and capital inflation headwinds ahead," the analyst said in a note to clients. "In our view, current valuation reflects market cautiousness around execution, with potential re-rating should the company be able to deliver."
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