Argonaut Gold Outperform Rating Maintained by BMOArgonaut Gold Outperform Rating Maintained by BMO After Sale, Option, of Mexico Properties; Price Target Kept at C$1.00 2022-12-06 11:08:19 AM ET (MT Newswires)
11:08 AM EST, 12/06/2022 (MT Newswires) -- BMO Capital Markets on Tuesday reiterated its outperform rating on the shares of Argonaut Gold (AR.TO) with a C$1.00 price target after the company disposed of some Mexico gold properties to concentrate on the construction of its Magino gold mine in Ontario.
"Argonaut entered into an agreement with Heliostar to sell their Ana Paula Project and option their San Antonio Project. Our current model does not attribute any value to these projects," analyst Brian Quast wrote. "We view this transaction positively as it strengthens AR's financial position and allows further prioritization of their principal assets. In return for Ana Paula, AR is receiving US$10M along with several milestone payments totaling US$20M. On exercise of the San Antonio option, AR will receive cash/shares totaling US$80-150M (depending on the price of gold) and a 2.0% NSR royalty."