GMD’s FY24 result was mixed with lower Ebitda and Ebit offset by a tax credit that boosted reported profit. The underlying cash result was broadly in line with our estimates. GMD has yet to update guidance from its five-year plan, however we expect the company will look to accelerate its growth targets. An update on the outlook is expected in September and should deliver increased ounces in the next few years, albeit with increased capex to deliver this outcome. GMD’s ability to surprise on its medium-term growth outlook is a key driver of our BUY rating and the stock remains one of our preferred picks in the ASX gold sector. Our price target rises 9% to A$3.70 due to the rise in spot gold prices since our last update.
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