RBC Capital sets Lumina Gold stock target at Cdn$1.50

On Tuesday, RBC Capital Markets initiated coverage on Lumina Gold Corp. (TSXV: LUM), assigning the stock an “Outperform” rating and setting a price target of C$1.50. Lumina Gold shares have shown strong momentum, gaining 26.49% year-to-date, although they are currently trading at $0.41 with a market capitalization of $171.47 million.

RBC’s analysis is based on the progress of Lumina’s Cangrejos copper-gold project in Ecuador, which is expected to have a mine life exceeding 25 years with annual production of approximately 450,000 ounces of gold equivalent (AuEq). The feasibility study, scheduled for release in Q2 2025, is expected to demonstrate strong project economics at a cost of approximately $1,000 per ounce and an estimated initial capital expenditure of approximately $1.2 billion. RBC’s long-term gold price assumption of $2,200 per ounce underscores the project’s robust economic outlook, which is even more attractive at current spot prices.

According to RBC Capital Markets, Lumina Gold is currently trading at a significant discount to its peers. This valuation gap is expected to narrow as the company achieves key milestones, including securing project financing and obtaining final permits, with operations scheduled to continue through 2026.

The initiation of this review reflects RBC’s view that Lumina Gold is a potential acquisition target due to its large-scale, long-life mine project and favorable economics. The "Outperform" rating and C$1.50 price target reflect RBC's confidence in Lumina's growth prospects and ability to deliver value to shareholders as the company progresses through its development phases.