BGL has released results from grade control drilling from key stopes planned to be mined in the 2HFY25. Impressive grades at the Armand, Bellevue and Deacon mining areas have been released, with intersections averaging 4-6m @ 40-50g/t. Ramping up stoping in the higher-grade areas of the mine are key to BGL delivering on its ~90koz guidance target for the 2HFY25, which is the mid-point of the range. BGL noted that the underground mining rate increased to 1.0mtpa in December, which will enable no low-grade stockpiles to be processed in the 2HFY25. We had assumed 100% of ore feed would come from underground hence this guidance was in line with our estimates. Delivering on its 2HFY25 guidance target is a key catalyst for BGL, with the company to update AISC guidance for the 2HFY25 later this month. We reiterate our BUY rating on the stock and lift our price target 3% to A$1.65 due to the recent rise in spot gold prices.
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