Stifel GMP on Thursday upped its price target on Steppe Gold Ltd (TSE:STGO) (OTCMKTS:STPGF) (FRA:2J9) to C$4.00 from C$3.90 a share, a day after the miner doubled the resource at its ATO gold mine to 2.45 million gold equivalent ounces.
Steppe Gold released an updated resource estimate at the Mongolian project that saw measured and indicated (M&I) resources increase to 41.6 million tons or 2.2 million ounces at an average grade of 1.7 grams per ton (g/t) gold equivalent ounces – 1.4 million gold ounces and 20.5 million silver ounces.
The company, meanwhile, is preparing a bankable feasibility project on the ATO operation that is due to come out in the second quarter of 2021.
READ: Steppe Gold releases updated resource estimate that doubles resource at ATO gold mine to nearly 2.5 million ounces
“Overall, gold and base metal grades were lower than we had expected, but silver grades beat our expectations, driven by the maiden resource at the Mungu sulphide deposit,” the Stifel analysts said in a note to clients.
Repeating a ‘Buy’ rating on the stock, they added: “We have increased our target to C$4.00 and continue to rate the stock as one of our Top Picks in the gold space. STGO offers excellent value, in our view trading at a discount to peers on spot P/NAV and 2021 P/CF metrics.”
Steppe Gold's stock trades around US$2.10 a share in New York and around C$2.65 a share in Toronto.
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