Galiano Gold raised at BMO as stock price looks to have bottomed

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Galiano Gold (NYSE:GAU) +3.8% in Tuesday's trading after BMO Capital upgraded shares to Market Perform from Underperform with a C$0.75 price target, up from C$0.50, saying the stock price appears to have bottomed following relatively better H1 operating results.

BMO analyst Raj Ray said Galiano (GAU) made changes to the operating protocol which helped improve recovery in Q2 to 84%, and the company was able to 92.4K oz of H1 production which drove increased full-year guidance to 140K-160K oz from 100K-120K oz previously.

While still waiting for internal metallurgical tests, Ray upgraded Galiano (GAU) as the downside looks limited at current levels and the stock price remains heavily discounted for a company with attributable annual production of 100K-120K oz and significant measured and indicated mineral resources.

Last week, Galiano Gold (GAU) reported Q2 adjusted earnings of $0.06/share on revenues of $85M.