09:37 AM EDT, 05/24/2024 (MT Newswires) -- Stifel GMP on Friday reiterated its buy rating on the shares of i-80 Gold ( IAUX ) while cutting its price target to C$4.10 from C$4.75 as it updated its model after the company earlier this month closed a bought-deal share offering.

"Following the recent successful equity raise of C$115m, we are updating our valuation. This cash injection (along with revenue from Granite Creek ore sales) provides runway through to 2H25, funding initial construction of the Ruby Hill base metals mine. This is a key to establishing cash flow to fund the rest of the growth pipeline, culminating in 230koz/yr produced from the Lone Tree autoclave (generating $270m/yr in site level FCF at spot prices). Our NAV has decreased due to the equity dilution and cash flow timeline and we are revising our target price to C$4.10/sh. We maintain our BUY rating and think the stock trades too cheap for a company with assets in an ultra-low-risk jurisdiction, with a differentiated asset that sets it up to be a consolidator and runway to generate significant free cash flow. Watch for Ruby Hill JV announcement, construction decision and SPZ inaugural resource," analyst Stephen Soock wrote.

(MT Newswires covers equity, commodity and economic research from major banks and research firms in North America, Asia and Europe. Research providers may contact us here: https://www.mtnewswires.com/contact-us)

Price: 1.57, Change: +0.04, Percent Change: +2.61