Analyst Andrew Mikitchook of BMO Capital maintained a Buy rating on Osisko Development, with a price target of C$6.00.
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Andrew Mikitchook has given his Buy rating due to a combination of factors that highlight the potential growth and financial stability of Osisko Development. The company has secured a significant US$450 million credit facility from Appian Capital, which is a crucial step in advancing the Cariboo Gold Project. This facility is structured to provide immediate funding for pre-construction activities, thereby reducing project risks and setting the stage for future development.
Additionally, the optimized Feasibility Study for the Cariboo project indicates promising production and cost metrics, with an expected annual output of 190,000 ounces over a decade and a competitive all-in sustaining cost. The strategic financing approach, involving debt, equity, and vendor financing, positions Osisko Development to achieve stronger market valuations as it progresses with its projects. The company’s portfolio also offers growth potential through other projects like the Trixie mine in Utah and the San Antonio project in Mexico, further supporting the Buy recommendation.
In another report released on July 22, Stifel Nicolaus also maintained a Buy rating on the stock with a C$6.00 price target.
Based on the recent corporate insider activity of 17 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of ODV in relation to earlier this year.