In a report released yesterday, Brian Quast from BMO Capital maintained a Hold rating on Lundin Gold (LUGDF – Research Report), with a price target of C$45.00.
Brian Quast has given his Hold rating due to a combination of factors related to Lundin Gold’s recent performance and future prospects. The company’s gold production for Q1/25 was slightly below BMO’s expectations, primarily due to lower-than-anticipated throughput and recoveries, although this was somewhat balanced by higher gold grades achieved through strategic mine resequencing. Despite this production miss, Lundin Gold remains on track to meet its annual production guidance, as they have already achieved a significant portion of their yearly target.
Additionally, the company capitalized on expected downtime to complete essential maintenance and optimize their process plant, which should support their ability to meet future production goals. Furthermore, the realized gold price for the quarter was higher than the average market price, suggesting potential upside to earnings. These factors combined with Lundin Gold’s demonstrated operational capabilities and potential for further optimization and exploration, support the Hold rating, reflecting a balanced view of the company’s current position and future opportunities.
According to TipRanks, Quast is a 5-star analyst with an average return of 11.0% and a 54.52% success rate. Quast covers the Basic Materials sector, focusing on stocks such as Eldorado Gold, B2Gold, and New Gold.
In another report released on April 4, Raymond James also maintained a Hold rating on the stock with a C$43.00 price target.