RRL reported revenue and Ebitda of A$1,263m and A$421m for FY24, in line with our estimates. Higher depreciation expenses resulted in Ebit of A$73.2m coming in well below our estimate, while higher impairments relating to McPhillamys and the hedge book close out translated to a full year net loss of A$186m, materially wider than we had expected. Cash had been previously disclosed hence the cash flow result was broadly in line with our estimates. We have downgraded our FY25-FY28 earnings forecasts by 11-16% to incorporate higher depreciation expenses. We expect RRL to produce between 360-375kozpa over the next five years. This should generate ~A$1.1b in free cash flow using Argonaut gold price forecasts and ~A$1.8b at spot prices. We reiterate our BUY rating on RRL, lifting our price target 5% to A$2.20 to reflect reduced cash tax expenses.
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