GMD’s 4QFY24 result was solid with gold sales and AISC within 2% of our forecasts. Cash flow was weaker than we expected, however, this reflected an early acceleration of capex, including the acquisition of the Leonora Lodge. We note that the FY24 production and AISC result was within guidance ranges. Faster development rates at Ulysses and a stockpile build driven by a strong mining performance at Admiral, should enable GMD to bring forward the re-start of the Laverton mill. We expect this will drive an upgrade to FY25 guidance, and GMD has indicated it will provide a guidance update in September. We believe GMD will continue to revise up its growth outlook, with a new 4.0mtpa mill in our medium-term base case for Leonora. We are reiterating our BUY rating and A$3.40 price target.
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