Canaccord Genuity nudges up target price on Touchstone Exploration

Analysts at Canaccord Genuity slightly raised their target price on exploration and production firm Touchstone Exploration from 190.0p to 200.0p on Monday after the group secured environmental approvals for its Cascadura development.

Canaccord Genuity said on Monday that the key element to allow the Cascadura development on the Ortoire licence in Trinidad to proceed, approval of the Environmental Impact Assessment, had now been secured following confirmation from the Trinidad and Tobago Environmental Management Authority that no further information would be required.

"This in effect provides the 'green light' for the Cascadura development," said Canaccord.

"The EIA forms the critical part of the company's application for a Certificate of Environmental Clearance to develop Cascadura. With the expected near-term formal CEC approval Touchstone now anticipates first Cascadura production can be achieved by YE22."

The Canadian bank noted that after a "rigorous and longer process" than it had expected earlier this year, it sees the news as "a highly significant step forward" not just for Cascadura but also as a template for the longer-term development of all its Ortoire licence resources.

"Consequently, we partially derisk our Cascadura area valuation," concluded the analysts, who stood by their 'speculative buy' rating on the stock.

Reporting by Iain Gilbert at Sharecast.com