OBM’s 4QFY24 result was weaker than we had expected with gold production and sales missing our forecasts by 3% and 9% respectively. Importantly the performance of the Riverina underground mine was better than we had expected, mining more than double the volume of ore than we had expected. The final phase of the Missouri open pit and subsequent demobilisation of the open pit mining fleet was the key driver in AISC for the 4QFY24 coming in materially above our estimates. OBM has reiterated its key production and cost guidance ranges for FY25, and we have kept our production, cost and earnings forecasts for FY25 and beyond largely unchanged. The impressive performance from Riverina increases our confidence in OBM’s ability to deliver within guidance ranges for FY25 and we reiterate our BUY rating on the stock. Our price target rises 4% to A$0.55, reflecting the recent increase in spot gold prices.
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