Jefferies has adjusted its outlook on Lundin Gold (OTC:LUGDF) Inc. (LUG: CN) (OTC: FTMNF), increasing the price target to C$29.00 from the previous C$26.00, while reiterating a Buy rating on the stock.
The revision followed the company's Investor Day, which highlighted the ongoing operations and growth prospects at the Fruta del Norte (FDN) project.
During the event, Lundin Gold discussed several enhancements aimed at increasing operational efficiency, including higher throughput. These improvements are anticipated to contribute to reduced costs by 2025.
Additionally, exploration successes, particularly at the FDN South site, have revealed potential for significant expansion of the mine's scale.
Jefferies has made adjustments to its cost expectations for Lundin Gold, slightly lowering the unit cost forecast to better align with the company's guidance. The firm also increased its long-term throughput estimate to 5,500 tonnes per day.
Lundin Gold operates the Fruta del Norte gold mine, which is among the highest-grade gold projects in the world.
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