RMS has increased its equity stake in Spartan Resources (SPR AU, SPEC BUY, A$1.80 Price Target) to 19.9% by participating in SPR’s recent share placement. The investment in SPR is now valued at A$400m and accounts for ~14% of our valuation for RMS. The expansion study for Mt Magnet, which will include a larger open pit at Eridanus and a mill expansion, is expected to be released this month. A pre-feasibility study on the Rebecca/Roe project is also due to be released before the end of 2024. Incorporating the increased investment in SPR and the rise in spot gold prices drives an 11% upgrade in our price target for RMS to A$3.00 and we reiterate our BUY rating on the stock.
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