Ascot Resources (AOT) has received a new Buy rating, initiated by BMO Capital analyst, Brian Quast.
Brian Quast has given his Buy rating due to a combination of factors including the recent successful closing of a significant private placement, which raised approximately C$61.1 million. This capital infusion is intended to advance the Premier Gold Project and support general corporate activities, providing a solid financial foundation for Ascot Resources. Additionally, the company has secured agreements with Sprott and Nebari to extend existing waiver and forbearance conditions until September 2025, which adds financial flexibility and stability.
Furthermore, Ascot Resources has updated its development plan with a clear timeline for the mill restart, aiming for consistent operations by mid-2026. Despite increasing the modeled life-of-mine all-in sustaining costs, the imminent production at the Premier and Red Mountain Gold Mine positions the company to potentially re-rate as a premium smaller producer. These strategic moves and financial arrangements underpin Quast’s confidence in the company’s future performance, justifying the Buy rating.
AOT’s price has also changed moderately for the past six months – from C$0.165 to C$0.113, which is a -31.52% drop .