The majority of key data for the 2QFY25 had been pre-released and was stronger than we had expected earlier this month. AISC were higher than we expected, however this was largely due to Edna May, which is set to cease production shortly. We have lifted our FY25 production forecast to beyond the upper end of guidance, driven by impressive grades at Break of Day and Penny. The release of the Eridanus and Mt Magnet mill studies are being incorporated into an updated Mt Magnet Mine Plan due for release in the next few months. Outcomes from this study present a key near-term catalyst for RMS. We have incorporated a A$150m expansion of the Mt Magnet mill to 3.0mtpa into our base case for the first time. The expanded case drives material upgrades to our FY28 and FY29 earnings forecasts and underpins a 10% lift in our price target to A$3.40. We view the release of the Mt Magnet study, updated mine plan and likely upgrade to FY25 guidance as key near-term catalysts for RMS and we reiterate our BUY rating.
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