BMO Capital downgrades Ascot Resources stock on production delay

Published 26/06/2025, 10:14
BMO Capital downgrades Ascot Resources stock on production delay

Investing.com - BMO Capital downgraded Ascot Resources Ltd . (TSX:AOT) (OTC:AOTVF) stock rating from Outperform to Market Perform on Thursday.

The research firm removed its price target for the mining company after Ascot announced it would place its Premier Gold Project (PGP) on care and maintenance. The project will not begin production in August as previously expected.

BMO Capital cited the company’s inability to reach an agreement with its mining contractor or secure an alternative contractor as the primary reason for the production delay. The analyst report indicated the firm’s valuation is now based on in-situ value rather than a mine plan.

The downgrade includes a "Speculative" designation as BMO Capital awaits potential financing solutions for the gold mining company. This change reflects increased uncertainty about the project’s timeline and financial outlook.

Ascot Resources had previously positioned the Premier Gold Project as a key asset in its portfolio, with the August production target representing a significant milestone for the company’s growth strategy.

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