Allegiant Gold Proposes Share Consolidation and Explores Financing for Eastside Project

Allegiant Gold ( (TSE:AUAU) ) just unveiled an announcement.

Allegiant Gold Ltd. has announced a proposed share consolidation, subject to approval from the TSX Venture Exchange, where two existing shares will be consolidated into one. This move will reduce the total number of shares from approximately 106 million to 53 million, potentially impacting shareholder value and market perception. Concurrently, the company is exploring various financing options to advance its Eastside project, aiming to secure strategic funding to continue exploration and development efforts while maximizing shareholder value.

The most recent analyst rating on (TSE:AUAU) stock is a Buy with a C$0.50 price target. To see the full list of analyst forecasts on Allegiant Gold stock, see the TSE:AUAU Stock Forecast page.

Spark’s Take on TSE:AUAU Stock

According to Spark, TipRanks’ AI Analyst, TSE:AUAU is a Underperform.

Allegiant Gold faces significant financial challenges with ongoing losses and negative cash flow, despite a strong balance sheet. Technical analysis points to a bearish trend, while valuation concerns are evident from a negative P/E ratio. However, positive corporate events, such as strategic initiatives and board changes, offer some potential for improvement. Overall, the stock is rated low due to financial performance and valuation issues, with a modest score reflecting these challenges.

To see Spark’s full report on TSE:AUAU stock, click here.

More about Allegiant Gold

Allegiant Gold Ltd. is a mining company that owns five highly prospective gold projects located in Nevada, USA, a region known for its mining-friendly jurisdiction. The company’s flagship project, Eastside, is a district-scale gold resource with promising metallurgical testing results indicating potential for heap leaching of both oxide and sulphide gold mineralization.

Average Trading Volume: 83,236

Technical Sentiment Signal: Sell

Current Market Cap: C$13.26M

See more data about AUAU stock on TipRanks’ Stock Analysis page.