Argonaut Gold Inc. was upgraded to buy from hold at Desjardins Capital Markets, after the miner increased its capital budget by 48 per cent when it recently reported second quarter results.
The company’s plans include more spending at the El Castillo mine in Mexico, where it will begin to use a CR2 crusher that was idled at the La Colorada gold/silver project.
The other biggest spending increase will come at the Magino gold project in Ontario, where Argonaut plans to advance both permitting and a feasibility stud.
Desjardins analyst Michael Parkin also raised his target price on Argonaut shares to $4.70 from $4, as he anticipates higher EBITDA in the next 12 months.
The analyst expects the crusher move will boost production in 2016 and 2017.
Parkin’s cash flow per share forecast for Argonaut climbs a penny to 31 cents U.S., while his net asset value per share estimate rises eight cents to $3.33.
