Scotiabank Cuts Belo Sun Target to $0.652022-04-26 01:36:00 PM ET (MT Newswires)
01:36 PM EDT, 04/26/2022 (MT Newswires) -- Belo Sun, down nearly 55% in afternoon trade, earlier Tuesday announced a formal corporate update advising on the status of the two court rulings related to its Volta Grande project in Brazil: The court ruled (1) to postpone deciding on a competent permitting authority for environmental permitting and (2) to not lift the suspension of Volta Grande's construction licence and to also have the state agency (SEMAS) further analyze if indigenous consultation processes have been met.
Scotiabank's take: "We believe that investors will view the announcement as negative for BSX shares as in our view it points to a likely delay in permitting and resolution of the construction licence suspension for Volta Grande. BSX expressed disappointment that the suspension was not immediately lifted, however pointed to a positive outcome in that environmental licensing can move forward without the need for a new ruling from the Court of Appeals of the Federal Justice in Brasilia."
Scotia has cut its TP to C$0.65 (down from C$0.85) while maintaining a Sector Perform rating.