RRL delivered a solid 4QFY24 preliminary production result with gold production 3% higher than we had forecast, which enabled RRL to deliver a result in line with group production guidance. A stronger result at Duketon more than offset a weaker than expected performance at Tropicana, which continued to suffer from high rainfall. We have upgraded our short and medium-term earnings forecasts for RRL to reflect both the 4QFY24 result and an improved gold price outlook. Earnings for FY24 and FY25 rise 23-24% while FY26-FY28 rise 44-250%, highlighting RRL’s strong leverage to buoyant gold prices as an unhedged producer. The improved earnings outlook has driven a 20% rise in our price target to A$2.40 and we are upgrading our rating from Hold to BUY.
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