Galiano Gold downgraded to Market Perform from Outperform at BMO Capital

BMO Capital analyst Raj Ray downgraded Galiano Gold (GAU) to Market Perform from Outperform with a price target of C$1.50, down from C$2.50, after the company reported an updated five-year outlook for its Asanko Gold Mine in Ghana. Management has looked to simplify the mining sequence and reduce operational risks, but the result is lower production and higher costs over the next five years, the analyst tells investors in a research note. Th firm says Galiano’s recent operational underperformance and “muted” near-term free cash flow means that consistent execution will be needed to attract investor interest.