RRL’s 1QFY25 had largely been pre-released, with AISC the only new key data point, which was in line with our forecasts. We have made only minor changes to our estimates and note that our production and AISC forecasts for Duketon and Tropicana remain within guidance ranges for FY25. RRL’s resource base offers significant leverage to the rising gold price, and we have lifted our option value on resources not in our mining inventory from 2% to 3% of in-ground value. This combined with the continued rise in spot gold prices has driven a 19% upgrade to our price target to A$3.20 and we reiterate our BUY rating on RRL, noting the stock is trading on FY26-FY28 free cash flow yields of +20%pa.
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