BMO Capital Markets on Wednesday downgraded its rating on the shares of Galiano Gold (GAU.TO, GAU) to market perform from outperform and lowered its price target to C$1.50 from C$2.50 after the company released 2025 guidance and a five-year outlook.
"Galiano reported an updated 5-year outlook for its Asanko Gold Mine (AGM) in Ghana. Management has looked to simplify the mining sequence and reduce operational risks. However, the result is lower production and higher costs and capex over the next five years. While we still consider Galiano a discounted stock, the recent operational underperformance and the muted near-term free cash flow (FCF), means that consistent execution will be needed to attract investor interest. Consequently, we are downgrading to Market Perform (from Outperform) and reducing target price to C$1.50/sh (from $2.50/sh)," analyst Raj Ray wrote.
(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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