The Globe and Mail reports in its Wednesday edition that Canaccord analyst Carey MacRury began coverage on Gran Colombia Gold with a "buy" ranking. The Globe's David Leeder writes in the Eye On Equities column that Mr. MacRury is targeting the shares at $9.50. Analysts on average target the shares at $11.21. Mr. MacRury likes its "solid" operating record and foundation at its Segovia underground complex in Colombia. Mr. MacRury believes the company is "on the path to becoming a Latin American mid-tier producer." As well, he thinks gains are likely to be seen quite quickly at its recently acquired Toroparu project in Guyana. He says in a note: "Gran Colombia's shares have underperformed following the recent acquisition of Gold X. We note that Gran Colombia is trading at 0.5 times NAV on the basis of Segovia alone, suggesting to us that the market is not currently pricing in a lot of value for Toroparu. We expect that to start to change once the company releases its plan and economics for the project and as the project advances. ... We see the potential for the company's valuation to rerate higher as Toroparu advances into production and the company transitions into a more diversified, mid-tier producer."
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