CMM’s FY24 result was mixed, with higher non-cash inventory costs and expenses relating to the hedge book close out resulting in earnings coming in 8% below our estimates. However, cash flow was better than we expected as the cash cost of the hedge close out was lower than we had expected, while lower finance leases resulted in net cash coming in ahead of our estimates. CMM has left its FY25 guidance ranges for Karlawinda unchanged and we note that our forecasts are at the upper end of the range on production and lower end of the range for AISC. Securing approvals for the Mt Gibson Gold project and the completion of the Karlawinda expansion study presents key catalysts for CMM. We are reiterating our BUY rating, trimming our price target by 1% to A$7.70.
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