"We've reduced our target price to C$8.75 (US$6.75) from C$10, reflecting the broad-based contraction in sector multiples combined with increased investor sensitivity to project execution risk following recent significant capex increases in the industry amid continued industry operating challenges," he said.
Those challenges include material and labour shortages, supply chain issues, lingering COVID-19 impacts, and general cost inflation pressures, MacRury noted.
A share price of C$8.75 would still be a near-doubling of GCM's current share price of C$4.44 as of May 15, which was a 3% rise day on day.
GCM's adjusted earnings per share were $0.14 for Q1, which was in line with CG's estimate.
GCM's CEO Lombardo Paredes said the company's Q1 results met its expectations and that it is on track to meet production guidance of between 210,000 and 225,000 ounces of gold.
The company is on track to finalise the prefeasibility study in the third quarter of this year on its Toroparu project in Guyana, he noted.
The project has a resource of 185 million tonnes grading 1.42 grams per tonne gold and 0.1% copper in measured and indicated resources for 8.4 million ounces and 396 million pounds.
A preliminary economic assessment outlined average annual production of 225,000oz for 24 years from an open pit and underground operations at an all-in sustaining cost of US$916/oz, with life of mine production of 5.4Moz gold, 2.5Moz silver and 141.3Mlb copper.
GCM has a market capitalization of C$434.68 million.
