BMO Capital Markets downgraded its rating on the shares of Foran Mining (FOM.TO) to market perform, speculative risk, from outperform speculative risk., with a C$3.75 target price after the company said it will raise C$350 million in a private placement of shares and reported cost overruns at its McIlvenna Bay project in Saskatchewan.

The bank did not specify it previous target price for the shares, but it placed a C$5.00 price target on the shares in March.

"Phase 1 capital to completion has been re-estimated higher. In our view, a disappointing development, particularly given Foran recently filed an updated technical report, and provided a construction update. Concurrently, Foran also announced a proposed non-brokered private placement for gross proceeds of $350M with indications covering the full amount. Positively, the project follows a similar schedule. However, our NAV declines ~22%, and we are downgrading shares to Market Perform (Speculative) with a $3.75 target. New copper mines are scarce, and we will continue to monitor progress towards commercial production," analyst Rene Cartier noted.

(MT Newswires covers equity, commodity and economic research from major banks and research firms in North America, Asia and Europe. Research providers may contact us here: https://www.mtnewswires.com/contact-us)

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