Thursday, October 22, 2009, 16:51

Raymond James deepens gold coverage

Andrew Willis

Canada’s smaller gold companies got more southern exposure on Thursday, as investment dealer Raymond James launched coverage of mid-tier precious metal plays.

Florida-based Raymond James has a substantial Canadian footprint, with a national team of stockbrokers and an institutional desk. But for Canadian issuers, coverage from the investment dealer opens the door to one of the largest networks of independent U.S. stockbroekrs, as there are more than 5,000 financial advisers in the fold overseeing $193-billion (U.S.) in assets.

All these brokers are now getting analyst Forbes Gemmell’s research on Canadian mining companies Alamos Gold, Aurizon Mines, B2Gold, Gammon Gold and San Gold.

“We believe the emerging mid-tier producer space offers investors an attractive alternative to the senior gold producers,” said Mr. Gemmell in launching coverage. “Despite lacking the liquidity and scale of the seniors, in our view, the emerging mid-tiers have the ability to offer more attractive growth profiles as well as the potential valuation re-rating as they move up the production chain.”

B2Gold and San Gold garnered “outperform” ratings, while Alamos Gold was rated “strong buy.” Raymond James’ analyst rated Gammon Gold and Aurizon Mines at “market perform.” Thursday, October 22, 2009, 16:51