GMD’s 2QFY25 result was strong with production of 57.1koz 17% higher than we had forecast and an impressive 58% increase from the 1QFY25 result. AISC for the 2QFY25 of A$2,202/oz were 7% lower than we had forecast, which combined saw GMD generate A$50m in free cash flow, ~50% higher than we had anticipated. The stronger result was due to a combination of higher grades mined at Gwalia and Admiral and a faster ramp up at Laverton. GMD is progressing the key approvals for Tower Hill, and once these are received, we expect the company to being to accelerate its five-year growth outlook, including expanding the process plant at Leonora and defining additional feed for Laverton. We upgrade our FY25 earnings forecasts for GMD by 6%, lift our price target by 7% to A$4.90 and reiterate our BUY rating on the stock.
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