Calibre Mining Corp (CXB:CN) (OTC: CXBMF) received an upgrade from National Bank Financial from Sector Perform to Outperform. The firm also raised the price target for the mining company's shares to Cdn$4.00 from the previous Cdn$2.85. The upgrade was prompted by a revision in the gold price forecast, now set at a significantly increased long-term price of $2,200 per ounce, up from $1,700.
The analyst's positive outlook is based on a recent update to their gold price deck, aligning with a more favorable view of the precious metals market. This new projection is expected to benefit Calibre Mining's valuation, particularly for its Valentine project, which is a major component of the firm's net asset value (NAV).
The Valentine project, which accounts for approximately 58% of the analyst's NAV estimate for Calibre Mining, is anticipated to produce roughly 195,000 ounces of gold annually over a projected mine life of around 12 years. This expectation is based on the Feasibility Study released in 2022, which outlines the project's potential and lifespan.
The revised gold price assumption is a response to what is described as a "constructive precious metals' environment." The adjustment in the price deck is expected to have a direct and favorable impact on the projected net asset value of Calibre Mining's operations.
The upgrade and new price target for Calibre Mining reflect the firm's belief that the company is positioned to benefit from the current and anticipated environment in the gold market. The raised price target and upgrade to Outperform suggest a positive outlook for the company's stock performance in the eyes of National Bank Financial.
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