RMS reported preliminary production of 85.3koz in the 2QFY25 25% higher than we had expected and an impressive increase of 37% on the previous period. Mt Magnet production continues to climb, with higher-than-expected grades from Cue combined with ongoing strong results at Penny the key driver. Output at Edna May in its final six months was also ahead of our estimates. We have upgraded our FY25 production forecast by 4% to reflect the strong result, which translates to an 8% upgrade to our FY25 earnings forecast. The improved outlook drives a 3% lift in our price target to A$3.10. RMS has delayed the release of the Eridanus and Mt Magnet expansions to enable capital and operating cost estimates to be refined and complete additional geotechnical drilling at Eridanus. The release of this study presents a key near-term catalyst for RMS.
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