Gold Reserve downgraded to "underperform"

Analysts at RBC Capital Markets downgrade Gold Reserve Inc (GRZ) from 'outperform' to 'underperform,' while revising their estimates for the company. The target price has been reduced from $11 to $2. In a research note published this morning, the analysts mention that the Venezuelan government might revoke the mining permits for the Brisas project that were granted on March 2007 to the company. The reasons cited by the Ministry of the Environment and Natural Resources of Venezuela are dubious, since the area has been environmentally degraded on account of the artisinal gold mining carried out previously, the analysts add. The EPS estimate for 2008 has been reduced from -$0.19 to -$0.22. The EPS estimate for 2009 has been raised from -$0.40 to -$0.22.