Canvas Secondary

Canaccord: Argonaut Gold Has Strong Re-Rating Potential

Argonaut Gold may see strong re-rating potential following execution on ramp-ups at El Castillo, La Colorada in addition to advancement of Santonio, Magino projects, Canaccord analyst Rahul Paul said in note.
* AR CN remains focus list pick based on attractive valuation in context of one of most attractive, fully funded growth profiles in sector
* Smaller scale operation at Magino may be right decision as it should facilitate cost control, management of development risks
* Lower grade mineralization may provide for future substantial upside under higher gold price by supporting potential production expansion
* AR CN has 7 buys, 2 holds, PT C$14: Bloomberg

* NOTE yday: AR CN, PDG CN complete business combination
* NOTE Oct. 16: Prodigy’s Magino May Be Attractive to
Intermediates: Canaccord