OBM has upgraded total reserves and resources at Davyhurst. Importantly, a maiden reserve for Sand King has now been released and the resources for both Riverina and Sand King undergrounds have been upgraded 54% and 176%. We have incorporated a larger development at Sand King into our forecasts, which drives an increase in group production to a peak of 125kozpa from FY27. The larger mining inventory and higher production rate drives a 13% lift in our price target to A$0.45 and we reiterate our SPEC BUY rating. Formally approving the Sand King underground and evidence that the production ramp up at Riverina is progressing present key near-term catalysts for OBM.
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