Gabriel Resources downgraded to "underperform"

02/27/08 - RBC Capital Markets

NEW YORK, February 27 (newratings.com) - Analysts at RBC Capital Markets downgrade Gabriel Resources Ltd (GRZ) from "sector perform" to "underperform." The target price has been reduced from C$1.60 to C$1.50.

In a research note published this morning, the analysts mention that following the EIA suspension, all development activities at Rosia Montana have been suspended, putting the project on care and maintenance. Start-up capital costs for large-scale mining projects has risen by around 25% per year over the past two years on account of rising legal and permitting expenses and swelling equipment, labour and consumables costs, the analysts say.