The Havana underground has been approved, which will see an additional 55koz over 3 years (RRL share) produced at only a modest level of capex. We have already included Havana Underground in our base case forecasts, which sees production lift from an average of 133koz (FY24-26) to 148koz (FY27-29). There also remains ongoing underground potential at Tropicana; with Havana remaining open at depth which provides upside for LOM extension. 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, maintaining our price target of A$2.20.
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