RMS’s 1HFY24 earnings result was strong with adjusted Ebitda of A$138.8m 8% higher than we had forecast. Ebit and earnings were materially better than our estimates, driven by a sequential drop in the A$/oz depreciation charge at both Mt Magnet and Edna May. Cash flow was in line as had been previously released. RMS’s FY24 guidance ranges are unchanged. We see scope for a potential beat to FY24 guidance if grades at Mt Magnet remain ahead of our estimates and reiterate our BUY rating on RMS. The pending release of the Mt Magnet mine plan update and pre-feasibility study on Rebecca/Roe present key near-term catalysts for RMS.
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