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Globe says Desjardins's Sclodnick keen on Minera Alamos
2022-06-29 08:28 ET - In the News
The Globe and Mail reports in its Wednesday, June 29, edition that Desjardins Securities analyst John Sclodnick says he a "stronger conviction" in Minera Alamos after having met with the management. The Globe's David Leeder writes in the Eye On Equities column that Mr. Sclodnick sees the Toronto-based miner possessing "the type of low-capital-intensity projects to achieve low-risk production growth in this inflationary environment, and at current levels, neither Cerro de Oro nor La Fortuna are being priced in." Mr. Sclodnick continues to rate Minera Alamos "buy," with an unchanged share target of $1.30. Analysts on average target the shares at $1.07. Mr. Sclodnick says in a note: "We expect that with continued execution with project development, starting with ramping up Santana to commercial production levels, that the stock should begin to rerate to more appropriately reflect the multiples of a junior gold producer with embedded low-risk growth. The low-capital-intensity projects in the company's portfolio are the type that investors can gain comfort in with regard to achieving production growth without capex overruns; recent examples in Mexico include Las Chispas, Camino Rojo and, of course, Santana."
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