Southern Cross Gold stock downgraded by RBC as shares outpace raised target

Published 04/07/2025, 06:52
Southern Cross Gold stock downgraded by RBC as shares outpace raised target

Investing.com - RBC Capital downgraded Southern Cross Gold (ASX:SX2) from Outperform to Sector Perform while raising its price target to AUD6.20 from AUD4.80.

The downgrade follows Southern Cross Gold’s approximately 110% share price increase in 2025, which has now surpassed RBC’s newly increased price target.

RBC attributed the recent share price appreciation to ongoing exploration updates and a doubling of the Exploration Target (NYSE:TGT) to approximately 2.7 million ounces at roughly 9g/t gold equivalent.

The investment bank maintained its Speculative Risk qualifier and acknowledged that Southern Cross Gold possesses "a remarkable orebody" with potential for future growth.

RBC highlighted several remaining risks, including "defining a maiden Resource and Reserve, permitting, mine studies, obtaining funding and eventual project delivery."

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