Infill drilling results at Riverina have confirmed the potential for mined grades to exceed our base case and the reserve. We have increased our mining inventory grade from 4.2g/t to 4.9g/t at Riverina, which has driven 5-10% upgrades to our production forecasts for OBM, and 5-10% reductions in AISC. These changes have translated material upgrades to our medium-term earnings outlook for OBM and a 15% lift in our price target to A$0.63. However, after a +50% surge in its share price over the past month, there is modest upside to our increased price target, and we downgrade our rating on OBM from Buy to HOLD to reflect the lack of valuation upside following the strong share price performance.
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.
