RMS has upgraded its resources and reserves, with the key changes the first-time inclusion of the Cue Gold Project, additional resource conversion at Penny and a maiden resource for the Bartus underground at Mt Magnet. RMS’s total reserves now stand at 1.1moz, while resources sit at 8.7moz. Conversion of resources is expected to continue in FY25, with studies on Eridanus and a A$40-50m exploration budget focused on expanding and converting resources at Mt Magnet and Cue. The pre-feasibility study on the Rebecca/Roe project is due to be released towards the end of 2024 and will include maiden reserves estimates. Group gold production is forecast to decline from 293koz in FY24 to ~140koz in FY28. Arresting that decline, either through a major acquisition or acceleration of Rebecca/Roe, presents a key potential catalyst for RMS. We reiterate our HOLD rating and upgrade our price target by 5% to A$2.30 after incorporating the FY24 reserve and resource update.
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