OBM’s 2QFY25 result was solid with gold production, sales and AISC within 4% of our forecasts. Cash generation for the 2QFY25 was 16% higher than we had expected, with OBM’s cash balance rising to A$57.8m. The production ramp up at Riverina is on track, with recent stoping grades higher than we had expected. Mining at Sand King has commenced and should ramp up over the remainder of the year, with stoping to begin in the next few months. OBM has reiterated its FY25 guidance ranges, and we continue to expect the company to achieve a modest beat on production and deliver into costs. Should stoping grades at Riverina continue to outperform, we believe there is scope for OBM to achieve production rates above our medium-term forecasts. We are reiterating our BUY rating and A$0.90/share price target.
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