The Globe and Mail reports in its Thursday, July 7, edition that Canaccord Genuity analyst Rahul Paul says Centerra Gold's $1.1-billion (U.S.) deal to acquire Thompson Creek Metals is an attempt to diversify at a high cost. The Globe's David Leeder writes that Mr. Paul downgraded his rating to "hold" from "buy." The Canaccord stockpicker cut his share target by $2.50 to $7.50. Analysts on average target the shares at $7.94. Mr. Paul says in a note: "Overall, we believe the negatives of the acquisition outweigh the positives. With the positives largely contingent on higher metal prices, we believe Centerra's investment appeal has been diminished. We see meaningful value in TCM's flagship asset, the Mount Milligan Au-Cu mine. However, we believe that the Royal Gold Inc. (RGL-T), stream and the high levels of debt significantly limit the value to Centerra's equity holders." Mr. Paul cites a pair of positives in analyzing the deal: "materially" increased leverage to higher gold and copper prices, "largely the result of a weaker balance sheet," and diversification of its cash flow by adding a second Canadian producing asset. However, he says the deal adds "little" value to shareholders.