On Monday, BMO Capital Markets revised its stock price target for Calibre Mining Corp (CXB:CN) (OTC: CXBMF), decreasing it to C$4.40 from the previous C$5.00. The firm has kept its Outperform rating on the stock.
This adjustment follows Calibre Mining's announcement of third-quarter gold sales amounting to 46.1 thousand ounces, falling short of both the consensus forecast of 74.5 thousand ounces and BMO Capital's own estimate of 76.5 thousand ounces.
The underwhelming sales figures in the third quarter have led Calibre Mining to reduce its full-year production guidance. Originally projected to be between 275 and 300 thousand ounces, the company now anticipates producing only 230 to 240 thousand ounces of gold for the year. This revision is accompanied by an increase in the company's cost guidance.
Calibre Mining also provided an update on its Valentine project, which remains on track. However, the company has reported a rise in cost estimates for the project by C$91 million. Despite the setbacks in the third quarter, BMO Capital maintains a positive outlook on Calibre Mining's shares. The firm cites the mining company's long-term growth plans as a basis for continued upside potential.
The analyst from BMO Capital expressed confidence in the future of Calibre Mining despite the recent disappointments. "Despite the disappointing quarter we believe upside still remains, due to the long-term growth plans, and maintain our Outperform rating but lower our target price to C$4.40," the analyst stated, reaffirming the belief in the company's prospects.
Investors and market watchers will be keeping an eye on Calibre Mining's performance in the coming quarters, as the company strives to meet its revised production targets and manage the increased costs associated with its Valentine project.
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