10:22 AM EST, 02/27/2025 (MT Newswires) -- Coverage of Allied Gold ( AAUCF ) is no longer Restricted at National Bank of Canada, which has an Outperform rating and $8.70 price target on the stock according to a Wednesday note.

The bank said the price target was based on a NAVPS of 0.8x, an increase from 0.7x on financial and jurisdictional de-risking.

Allied Gold ( AAUCF ) recently announced an agreement to sell a 40% stake in the Sadiola mine in Mali to UAE-based Ambrosia Investment Holding for $375 million.

The transaction reduced Allied Gold's ( AAUCF ) mine stake to 40% from 80%.

The bank said the transaction implies a P/NPV of 0.48x from its $775 million carrying value for 40% of the Sadiola mine.

National has updated its model for these transactions as well as 2025 guidance and 2026-27 outlook.

"Overall, the deal lends de-risking on higher liquidity with all projects now internally funded and a reduced weighting in Mali," National Bank said.

Allied Gold's ( AAUCF ) share price was down 4.3% at last look to $4.66 on the TSX.

Price: 4.66, Change: -0.21, Percent Change: -4.31