GOR’s 2QCY24 result was weaker than we had expected, with production 16% lower and AISC 15% higher than we had expected. The weaker result was due to the ongoing impact of the severe rainfall event in April, which impacted operations for seven weeks. This follows on from a similar event earlier in the year and has left Gruyere 2-3 months behind on material movements. Guidance ranges have been cut due to the weak 1HCY24 result and we see risk to achieving targets given the significant acceleration required in mining rates. Accordingly, we move our production forecast to the bottom end of guidance for CY24 and AISC to the upper end of the range. We are downgrading our rating on GOR from Buy to HOLD and lower our price target 8% to A$1.85.
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