OBM delivered an impressive start to the year, with gold production, gold sales and cash generation materially higher than we had expected. The strong result reflected higher average stoping grades at Riverina and higher overall underground tonnes mined vs our forecasts. Key guidance ranges for FY25 remain unchanged, and we have made minor adjustments to our forecasts, with our base case calling for a modest beat in production in FY25. Incorporating the stronger start to the year drives a 9% upgrade to our earnings forecast for FY25, which combined with the rise in spot gold prices underpins a 13% lift in our price target to A$0.85 and we reiterate our BUY rating on OBM.
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