BMO Capital Markets has adjusted its outlook on Foran Mining Corporation (FOM: CN) (OTC: FMCXF), reducing the price target to Cdn$5.00 from the previous Cdn$5.25.
Despite the change, the firm maintained its Outperform rating on the mining company's stock.
The revision follows a hiatus in coverage due to Foran's recent financing announcement. BMO's analyst noted that the strategic investment, along with an expanded project finance credit facility and anticipated tax credits, have paved the way for a greenlight on the construction of the McIlvenna Bay project, which will be overseen by G Mining.
The project is expected to commence commercial production in the first half of 2026.
The analyst also highlighted the Tesla (NASDAQ:TSLA) exploration target within Foran Mining's portfolio, pointing out the potential for exploration upside. This prospect could support the expansion of operations in future phases of development.
The adjustment in the price target to Cdn$5.00 reflects a new assessment after taking into account the latest financing details, updated capital cost estimates, and the project's timeline.
Despite the slight decrease in the price target, BMO's stance remains positive regarding Foran Mining's prospects, particularly with the anticipated construction and production timelines for the McIlvenna Bay project.
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