Dahlman Rose Reiterates Hold Rating on Gammon Gold (GRS)

Dahlman Rose is out with a research report this morning, where it reiterates its Hold rating on Gammon Gold Inc. GRS. The DR analysts noted that higher volumes and higher metal prices should drive stronger operating cash flow generation in 2011. At current metal prices, the analysts expect significant free cash flow generation, despite a likely repeat of 2010 heavy capital expenditures. The analysts remarked, “We remain hopeful that GRS is nearing a turning point and that the heavy investments made to date will start to pay dividends.”