BGL has released production data for January in a presentation released to the ASX. Gold production has risen to 10.5koz, up ~30% from the December result. Assuming flat gold recoveries, this implies the average milled grade has improved to 4.1g/t. Production guidance for the 2HFY24 remains unchanged at 75-85koz, with AISC guidance for the 4QFY24 expected to be released once commercial production has been declared. The improved production rate is encouraging, however we note BGL needs to report average grades of 5.0-5.6g/t to achieve 2HFY24 guidance. We are reiterating our HOLD rating on BGL, noting that the release of AISC guidance could disappoint market expectations in coming months.
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