Ascot Resources Downgraded to Market Perform at Raymond James

Ascot Resources Ltd. (AOT.TO) was downgraded to Market Perform from Outperform at Raymond James on Tuesday.

Analyst Craig Stanley lowered his price target on shares of the Canadian mining company to $0.15 from $1 following its September 6 announcement that it was suspending operations at the Premier Gold Project in northwestern British Columbia.

The stock declined more than 8% to $0.17 on Monday.

"The timing of the announcement is surprising as on July 25 the company closed a $34 Million equity financing, yet just six weeks later management says development at the Big Missouri mine has fallen behind schedule by one to two months and further development is required at the Premier Mine to access deeper ore," Stanley said in a note to clients.

"We believe the best option is the sale of the company," the analyst said.

"PGP is a potentially strategic asset as it is one of three mills in the Golden Triangle, and is the closest to tidewater, offering consolidation and/or toll milling potential in the region."

(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)