RMS’s 4QFY24 result had been pre-released, with group production of 82.1koz in line with our estimates. However, the performance was mixed by project, with Mt Magnet reporting 13% lower output vs our estimates, offset by a 27% beat at Edna May. AISC were 6% higher at the group level for the 4QFY24, with lower costs at Mt Magnet offset by higher costs at Edna May. The production guidance range for FY25 has been upgraded by 3-8%, with RMS adding additional low-grade stockpiles at Edna May. Higher costs at Mt Magnet and the Edna May extension has driven a 6-7% increase in the FY25 AISC guidance range. RMS has indicated it will not proceed with the Stage 3 cut-back at Edna May but will assess a potential mill expansion at Mt Magnet. We reiterate our HOLD rating and A$2.20 price target after incorporating updated FY25 guidance.
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