A1M reported revenue and Ebitda of A$181m and A$52m for FY24. While revenue was in line with our estimates, Ebitda was lower due to higher than modelled operating costs. These higher than costs flowed on to lower-than-expected Ebit (A$12M) and Earnings (A$8M). Revenue and Earnings were markedly higher than FY23 due to improved copper and gold prices. Cash position was in line with our model at $74M. We have adjusted our forecasts for higher costs (5-10%) in coming years. Our forecast earnings for FY25 benefits from recognition of $77M in accumulated revenue losses, that can be used offset tax payable. Assuming copper strengthens in line with our forecast peaking at A$7.50/lb in December 2024, we estimate earnings of A$34M for FY25. Development towards the nearby Jericho deposit continues. The addition of ore feed from this asset is expected to underpin the long-term life of the Eloise operation. Since May, A1M has been sold from a peak of $0.60 per share. We improve our recommendation from Speculative Buy to Buy, whilst also moderating our Price Target from $0.65 to $0.60 per share.
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