G Mining Ventures Corp (TSX-V:GMIN, OTCQX:GMINF) has analysts bullish on the company following its positive progress update on its Tocantinzinho gold project in Brazil.
The company announced that the project is on time and on budget to commence first production late in the first half of 2024 and commercial production in the second half of the year, with construction 76% completed.
Analysts at RBC have an ‘Outperform’ rating on G Mining Ventures with a C$2 price target.
Shares of G Mining Ventures traded hands at C$1.70 early on Tuesday afternoon.
“We continue to see lower risk versus peer projects/developers for cost/timeline overruns given the solid progress to date, the substantial completion of procurement and the team's track record of delivering major projects on time and on budget,” the RBC analysts wrote in a note to clients.
Analysts at BMO also have an ‘Outperform’ rating and a C$2 price target on the stock.
They pointed out that the company appears well financed with US$112 million in cash and cash equivalents as of September 30, 2023, US$82 million in debt undrawn.
“A term loan with Franco-Nevada (US$75 million) makes up the majority of the financing available and upon draw-down would represent an independent confirmation of the timeline and financing status of the project,” they wrote.
Cormack Securities analysts have a C$3.25 price target on G Mining Ventures and a ‘Buy’ rating, noting that the company remains its favorite developer in the build phase.
“We believe there will be a gradual re-rate in 2024 as the company completes construction and advances Tocantinzinho to production,” they wrote.
“The strong operational pedigree of the management team and successful execution to date should give investors extra comfort to own the stock, which we believe should ultimately translate to a premium multiple as the project is de-risked.”
The Tocantinzinho project update supports the National Bank of Canada (TSX:NA)’s “top pick thesis” despite the stock trading at the higher end versus other peers, the bank’s analysts wrote.
“Buy G Mining Ventures for the quality of the team and long-term vision to buy and build their way to becoming a leading intermediate producer. The Tocantinzinho asset is only the start,” they wrote.
The National Bank of Canada analysts have an ‘Outperform’ rating on G Mining Ventures and a C$2.50 price target.