KRR released preliminary results for the 1QCY24. Gold production of 36.1koz was 9% lower than we had forecast, however gold sales of 40.3koz were 2% higher than our estimate. We note that no AISC data or a production split between Beta Hunt and Higginsville was provided with the preliminary 1QCY24 result. The slight beat on gold sales translated through to cash flow, with KRR’s consolidated cash position of C$87.3m also within 2% of our forecasts. KRR has now entered into exclusive merger discussions with an unnamed party, having ceased merger discussions with Ramelius Resources (RMS AU, BUY, Price Target A$2.40). There is no guarantee that discussions will lead to a takeover of KRR being completed and we reiterate our HOLD rating, lifting our price target 3% to C$6.00 due to the slight beat in gold sales and cash generation.
To access the full report please log in under the Client Area at the bottom of this page.
Argonaut’s Client Area allows you to view delayed share prices, access Argonaut’s wealth of Research as well as create custom portfolios and set up company watch lists.
If you would like to access our research please contact us to create an account.
