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Investing.com - BMO Capital reduced its price target on Snowline Gold Corp (SGD:CN) (OTC:SNWGF) to C$15.50 from C$17.50 on Wednesday, while maintaining an Outperform rating on the stock.
The revised target follows Snowline’s release of a Preliminary Economic Assessment (PEA) for its Valley Deposit, which showed higher initial capital expenditures and a longer development timeline than previously estimated by the research firm.
According to the PEA, the Valley Deposit is projected to have a twenty-year mine life with payable production of approximately 6.8 million ounces of gold, averaging 341,000 ounces annually at an all-in sustaining cost (AISC) of US$844 per ounce.
The first five full years of production are expected to yield 544,000 ounces per year, representing about 40% of the life-of-mine production, at a lower AISC of US$569 per ounce.
BMO Capital noted that despite the "slightly negative impact" to their estimates from the PEA results, they continue to maintain their Outperform rating on Snowline Gold, though with the reduced price target.
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