Broker Liberum repeated its ‘buy’ recommendation, but nudged down its share price target for stock in Shanta Gold Limited (AIM:SHG, OTC:SAAGF).
The change to valuation came in the wake of a production update from the Tanzania and Kenya-focused miner, which marginally undershot the forecast range.
Looking ahead, Liberum said the Singida operation remained "on track and budget" for March 2023, while a mineral resource update is expected for the West Kenya asset in February.
Turning to the financials, the company’s corporate broker is predicting 2022 EBITDA will more than double to US$26.7mln, before then rising to US$47.1mln and US$60.2mln for this year and next year respectively.
In the note, Liberum said its target price for the stock was 17p (from 18.9p), which represents a 35% premium to the current share price of 11.02p.