Galiano Gold's Promising Future Post-Asanko Mine Deal: Analyst Upgrades Stock
Portfolio Pulse from Nabaparna Bhattacharya
BMO Capital Markets analyst Raj Ray upgraded Galiano Gold Inc. (AMEX:GAU) to Outperform from Market Perform and raised the price target to C$1.50 from C$1.20. The upgrade follows Galiano's consolidation of the Asanko Gold Mine, which simplifies ownership and enhances operational flexibility. The deal is expected to double Galiano's share of reserves, resources, production, and cash flows with minimal equity dilution. Galiano's production is projected to increase and its pro forma cash balance by the end of 2023 is expected to be $128 million with no debt. GAU shares rose 3.78% to $0.8593.
December 22, 2023 | 7:15 pm
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Galiano Gold Inc. was upgraded by BMO Capital Markets to Outperform with a raised price target of C$1.50. The Asanko Gold Mine deal is expected to double the company's reserves and resources, and increase production, with minimal equity dilution and a strong cash balance.
The upgrade by BMO Capital Markets to Outperform and the increase in price target to C$1.50 are strong positive signals for Galiano Gold Inc. The consolidation of the Asanko Gold Mine is expected to significantly increase the company's reserves and resources, which is likely to be viewed favorably by investors. The minimal equity dilution and strong cash balance position the company well for future growth. The positive reaction in the stock price following the news further supports the likelihood of a continued short-term positive impact.
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IMPORTANCE 90
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