RED’s production, sales, and cash position for the 3QFY24 had been pre-released and hence were in line with our estimates. AISC for the 3QFY24 of A$1,926/oz were 10% lower than we had forecast due to variances in stockpile movements. AIC of A$2,319/oz were within 3% of our estimates. The proposed merger with Silver Lake Resources has announced firm dates for the release of the Scheme Booklet and Scheme meeting. Assuming shareholder approval is granted, the merger would be completed by 19 June 2024. We have lifted our FY24 production forecast by 2% towards the upper end of the guidance rage, which has driven a 51% upgrade to our FY24 earnings forecast. The improved earnings outlook drives a 2% lift in our price target to A$0.52 and we reiterate our BUY rating on RED.
To access the full report please log in under the Client Area at the bottom of this page.
Argonaut’s Client Area allows you to view delayed share prices, access Argonaut’s wealth of Research as well as create custom portfolios and set up company watch lists.
If you would like to access our research please contact us to create an account.
