Ariana Resources PLC (LON:AAU) has had its target price increased to 3.18p from 2.82p by analysts at Panmure Gordon while also retaining its status as the only small-cap miner with a ‘buy’ rating from the broker.
In a note published on Wednesday, Panmure said they had increased their production forecasts for the gold miner following a first-quarter update and that the company’s shares were currently trading at an “excessive” discount given the low-cost and profitable nature of its operations at the Kiziltepe project in Turkey.
For the quarter ended 31 March 2019, Ariana produced 7,296 ounces of gold from Kiziltepe, generating a gross income of US$10.86mln.
“Ariana offers investors something not often seen in the small-cap precious metals mining space: a profitable, cash generative precious metals production company with a realistic and achievable growth profile”, Panmure said.
The bullish assessment sent Ariana’s shares up 1.3% to 2p in mid-afternoon trading on Thursday.