BCN’s 1HFY25 result was soft, with operating and free cash flow numbers in line with our estimates but below prior reporting periods. A challenging 1QFY25 production result with higher growth capital spend were the primary reasons behind the low cash build in 1HFY25. BCN is positioned for a stronger 2HFY25 following recent mill upgrades that have lifted throughput to 950ktpa, along with reduced strip ratios at MacPherson as the open pits progress deeper. BCN is mill-constrained with a significant resource base, and a mill upgrade from 0.95Mtpa to 1.25- 1.5Mtpa is likely the next step to lift production. This mill upgrade represents upside risk to our current production profile. Spot gold price increases lift our price target from $0.09 to $0.10 with a Speculative Buy recommendation maintained.
To access the full report please log in under the Research Portal at the bottom of this page.
Argonaut’s Research Portal allows you to access Argonaut’s wealth of Research, as well as view descriptions of the Morning Note, Companies covered and the Team.
If you would like to access our research please contact us to create an account.
