BMO Capital analyst Brian Quast maintained a Buy rating on Snowline Gold Corp. (SGD – Research Report) today and set a price target of C$15.50.
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Brian Quast has given his Buy rating due to a combination of factors including the promising production outlook and strategic early processing of high-grade ore at Snowline Gold Corp.’s Valley Deposit. The Preliminary Economic Assessment (PEA) indicates a robust twenty-year mine life with significant gold production, particularly in the first five years, which is expected to yield 544,000 ounces annually at a competitive all-in sustaining cost (AISC) of $569 per ounce. This early high-grade production is a key factor in the positive outlook, despite the slightly higher initial capital expenditures and extended development timeline compared to previous estimates.
Additionally, the potential for resource expansion and the addition of satellite deposits present further upside opportunities. The Valley Deposit remains open in multiple directions, suggesting that continued exploration could enhance value creation. Furthermore, the possibility of increased throughput and infrastructure support from the Canadian government could further bolster the project’s prospects. These factors collectively underpin Quast’s confidence in the stock’s potential, justifying the Buy rating.
According to TipRanks, Quast is a 5-star analyst with an average return of 16.0% and a 58.44% success rate. Quast covers the Basic Materials sector, focusing on stocks such as Snowline Gold Corp., Lundin Gold, and B2Gold.
In another report released on June 24, Canaccord Genuity also maintained a Buy rating on the stock with a C$23.25 price target.