Follow up article
Globe says new coverage rates Argonaut "outperform"
2021-06-03 07:20 ET - In the News
The Globe and Mail reports in its Thursday, June 3, edition that RBC analyst Wayne Lam thinks Argonaut Gold's Magino project is likely to "transform the company by adding a long-lived, lower cost asset within a Tier I jurisdiction with interesting longer term exploration upside." The Globe's David Leeder writes that Mr. Lam began coverage with an "outperform" recommendation and $4.25 share target. Analysts on average target the shares at $4.99. Mr. Lam says in a note: "Exploration remains a key part of the Argonaut story. ... At Magino, the company has been drilling off higher grades at depth, with the mine sitting adjacent to the Island Gold mine. ... We believe the company could benefit from a merger-of-equals type of transaction with New Gold or as a consolidation target for Alamos given proximity of Magino to the Island Gold mine. ... Argonaut currently trades at a 25-per-cent discount to growth peers on long-term NAV and 15-per-cent discount on near-term EBITDA. Additionally, we view potential for addition to the GDX ETF in Q2 as a near-term catalyst. Given the scarcity of companies with meaningful production growth ahead, we anticipate a rerating opportunity as Magino continues to advance towards production."