Brian Quast, an analyst from BMO Capital, maintained the Buy rating on Alkane Resources Ltd. The associated price target remains the same with C$1.50.
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Brian Quast has given his Buy rating due to a combination of factors related to Alkane Resources Ltd’s recent developments and strategic decisions. Despite a slight year-over-year decrease in reserves and resources following the merger with Mandalay, the consistency in gold grades and the strategic shift to expand underground operations at the Rosewell deposit are seen as positive moves. The realignment of the Newel Highway and the increase in cut-off grades for reserves and resources indicate a focused approach to optimizing mining operations.
Additionally, the increase in the gold price assumption to A$3,500/oz provides a favorable economic backdrop for Alkane Resources. The successful integration of Mandalay’s assets and the potential for positive market perception regarding capital allocation further support the Buy rating. These factors, combined with the company’s ability to maintain consistent grades and adapt to market conditions, underpin the optimistic outlook for Alkane Resources’ stock performance.
In another report released on October 13, Ord Minnett also maintained a Buy rating on the stock with a A$1.45 price target.
Based on the recent corporate insider activity of 17 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of ALKEF in relation to earlier this year.