Brian MacArthur, an analyst from Raymond James, maintained the Buy rating on Versamet Royalties Corp.. The associated price target is C$14.50.
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Brian MacArthur has given his Buy rating due to a combination of factors that highlight Versamet Royalties Corp.’s strong financial performance and growth potential. The company reported a significant increase in quarterly revenue, driven by higher contributions from key assets such as Greenstone, Kiaka, and Santa Rita. This impressive revenue growth, coupled with a substantial rise in operating cash flow, underscores VMET’s effective management and strategic asset portfolio.
Looking ahead, VMET is poised for continued growth, with expectations to double its gold equivalent ounces (GEOs) production by 2026. The company’s strategic investments in expanding production capacity at key mines, such as Blackwater, further bolster its growth outlook. Additionally, VMET’s business model, which focuses on precious metals royalties and streams, offers investors exposure to metal price upside while mitigating operational and capital cost risks. These factors, combined with favorable valuation metrics, support MacArthur’s positive outlook on the stock.
MacArthur covers the Basic Materials sector, focusing on stocks such as Barrick Mining, Centerra Gold, and Integra Resources Corp. According to TipRanks, MacArthur has an average return of 23.7% and a 65.56% success rate on recommended stocks.