Eldorado Gold: BMO Reiterates $20 Price Target

This week Eldorado Gold (TSX: ELD) provided full year 2022 production and cost guidance as well as a 5-year production outlook. By 2022, Eldorado expects total gold production to be 460,000 to 490,000 ounces, or about 7% higher than the prior guidance. Cash operating costs are expected to be between $640 and $690 per ounce, while the all-in sustaining costs are expected to be between $1,075 and $1,175.

Eldorado Gold also raised their 2023 and 2024 production guidance, bringing them up 4% and 7% respectively. The company additionally expects by 2026 to be producing between 510,000 and 540,000 ounces of gold per year.

Eldorado Gold currently has 11 analysts covering the stock with an average 12-month price target of US$13.50, or a 42% upside to the current stock price. Out of the 11 analysts, 6 have buy ratings, 4 have hold ratings and the last analyst has a sell rating. The street high price target sits at US$17.51, or an 85% upside to the current stock price while the lowest comes in at US$9.25.

In BMO Capital Markets’ note, they reiterate their outperform rating and $20 12-month price target saying that the company is “approaching the growth spurt.”

For the 2022 guidance, production came in line with BMO’s 471,000-ounce estimate while all-in sustaining costs came in slightly above their $1,070 per ounce estimate. Onto the improved 5 year guidance, they say that the outlook looks a little above their expectations.

Lastly, they say that if you take the midpoint of the 2025 guidance, which is 550,000 ounces produced, it would be a 5% 3-year organic CAGR, which is “a rarity among intermediate and senior producers at present.”

Below you can see BMO’s updated estimates.


Information for this briefing was found via Sedar and Refinitiv. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

Video Articles

Goliath Resources Hits 10.60 g/t Gold Over 22.82 Metres, Highest Grade Results In Third Distinct Rock Package At Surebet Discovery

Four Countries Control the Fertilizer That Feeds the World | Sage Potash

$10,000 Gold Is Just A Question of Time | Florian Grummes

Recommended

ESGold Outlines $24.3 Million NPV For Tailings Reprocessing Project

First Majestic Encounters 711 g/t Silver Equivalent Over 8.0 Metres In Ongoing Exploration At Los Gatos

Related News

Ayr Strategies: Canaccord Raises Price Target To $45

This morning Canaccord upgraded Ayr Strategies’ (CSE: AYR.A) twelve month price target to C$45 from...

Friday, December 11, 2020, 11:53:00 AM

Canaccord: Yamana Gold, Gold Fields Deal Is A “Surprise Combination”

On May 31, Gold Fields (NYSE: GFI) announced that they would be acquiring Yamana Gold...

Thursday, June 2, 2022, 03:56:27 PM

Ayr Wellness: Canaccord Reiterates Ratings After Quarterly Results

On August 16, Ayr Wellness (CSE: AYR.a) reported their second quarter financial results. The company...

Thursday, August 26, 2021, 10:24:00 AM

Canaccord Revises Estimates For Eldorado Gold, Maintains Ratings

Eldorado Gold (TSX: ELD) reported their second quarter financials recently. The company produced 116,066 ounces...

Monday, August 9, 2021, 04:49:00 PM

PI Financial Raises Aphria’s Price Target To $11.00

On Wednesday, Aphria Inc (TSX: APHA) (NASDAQ: APHA) announced that it had entered an agreement...

Sunday, November 8, 2020, 04:20:00 PM