Analyst Actions: Rainy River Price Target Lowered at UBS on Equity Dilution
UBS analyst Dan Rollins said in a research note today that Rainy River Resources Ltd. (RR.V) is likely to develop a larger operation at its namesake gold project in northern Ontario than initially thought, the Globe and Mail reported.
Mr. Rollins reportedly said he now sees the potential for annual gold production of 328,000 ounces, which would raise capital costs at a time of industry-wide cost inflation.
UBS, citing the equity dilution that would result from higher financing requirements, cut the price target by $1.50 to $13.50.
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