OBM has reported positive grade and recovery reconciliation vs the mineral resource and internal targets at Sand King. The Sand King mine is in the ramp up phase, and delivering steady state output is targeted for the 4QFY25. Mining rates at Riverina have stabilised over the past six months and we expect to see improved head grades in the 2HFY25, with group production boosted by the ramp up of Sand King. Our base case already captures +150% of ounces in resource for Riverina and +115% of ounces in resource for Sand King and we reiterate our HOLD rating and A$1.00 price target on OBM. Regional exploration success has the potential to deliver material upside to our base case in the medium to long-term, with the Little Gem discovery an early indication of this potential.
To access the full report please log in under the Research Portal at the bottom of this page.
Argonaut’s Research Portal allows you to access Argonaut’s wealth of Research, as well as view descriptions of the Morning Note, Companies covered and the Team.
If you would like to access our research please contact us to create an account.
