Mining & Metals
CIBC Lowers G Mining Ventures' Price Target to C$60.00 From C$62.00, Maintains Outperformer Rating
CIBC Capital Markets maintained its outperformer rating on the shares of G Mining Ventures (GMIN.TO) and lowered its price target to C$60.00 from C$62.00."After incorporating Q1/26 results, changing our accounting methodology on the Franco Nevada gold stream, rolling forward our DCF and fine-tuning our estimates, we are trimming our price target to C$60.00 from C$62.00 and maintaining our Outperformer rating," stated CIBC.Overall, CIBC's NAVPS increases to C$64.88 from C$62.23, which largely reflects rolling forward its DCF by one quarter, while its annualized FY26E CFPS decreases to C$3.76 from C$4.04 previously, as a result of fine-tuning 2026E throughput and grade assumptions at Tocantinzhino (TZ), and adjusting its accounting methodology for the Franco Nevada gold stream, said CIBC."After slightly reducing our 2026E throughput at TZ to an average of 12.1ktpd from 12.5ktpd, we now forecast 2026 gold production of 174koz, below our prior estimate of 182koz," CIBC added. "For costs, we now expect cash costs of (US)$896/oz and AISC of (US)$1,404/oz vs. our previous estimates of (US)$884/oz and (US)$1,431/oz, respectively."On fuel cost impact from U.S.-Iran war CIBC noted that, on the conference call the company noted that it has not experienced large cost increases as a result of elevated fuel costs due to previously procuring large lead items and equipment at or below budgeted prices. However, the company noted that logistics costs have been slightly impacted, CIBC added."The company confirmed that a 10% increase in oil prices translates to about (US)$10-(US)$11/oz in cash costs," said CIBC. "GMIN's diesel price assumption for 2026 was (US)$1/L, representing 10% of cash costs, with Q1/26 realized fuel prices of (US)$1.13/L, representing 12% of cash costs."Mining costs in Q1/26 were higher due to the rainy season, largely impacting road maintenance and tire consumption, noted CIBC."As TZ moves into the dry season, costs are expected to decrease as productivity improves," said CIBC.In the quarter, AISC was above annual guidance due to lower production and higher royalty costs, noted CIBC but added that, the company expects AISC to decrease as production increases in H2/26 (access to higher-grade ore), bringing it to within guidance range.Price: $43.77, Change: $+0.07, Percent Change: +0.16%
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