CMM has closed out its remaining 55koz of forward hedging, replacing the forwards with A$4,500/oz put options, at a combined cost of A$147m. To fund the closure of the forwards, CMM has completed a A$140m capital raising at A$7.90/share. The removal of the out-of-the-money hedges drives 16% and 4% upgrades to our EPS forecasts for FY26 and FY27, respectively. The capital raising is 4% dilutive to EPS in other years. We retain a bullish outlook for gold prices and view the closure of the gold forwards as a positive move, leaving CMM fully exposed to the gold price. We reiterate our BUY rating, with our price target unchanged at A$11.00 as the improved earnings outlook and rising gold price offset the increased equity dilution. Securing final approvals for the Mt Gibson project remain the key near-term catalyst for CMM.
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