Since our last note, Medallion has added 250koz AuEq at its Ravensthorpe Gold Project, with the total Mineral Resource now estimated at 19.5Mt at 2.6g/t AuEq for 1.6Moz AuEq (1.3Moz Au and 59kt Cu). This MRE will form the basis for a PFS, scheduled for mid-2023 completion. We update our modelled mining scenario which provides a basis for our valuation, factoring in a larger mining inventory, delaying construction commencement and subsequent first production. In our valuation we realise a decrease from previous, driven primarily from increased equity dilution. Our valuation still shows significant upside to the current price. We see further upside potential with targets open at depth and in multiple directions, and with the prospectivity of regional targets. We maintain our Speculative Buy recommendation at a valuation of $0.36 (prior $0.50).
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