While production was pre-released, gold sales were better than expected and a slight beat on costs at Duketon offset higher costs at Tropicana. FY25 guidance was disappointing, with production of 350-380koz lower than we had expected and AISC of A$2,440-2,740/oz above our prior forecasts. Uncertainty over the potential commitment to the A$1b McPhillamys project and the royalty claim by South32 continue to be a headwind; however RRL provides strong leverage to bouyant gold prices as an unhedged producer. We maintain our BUY rating but lower our price target 8% to A$2.30 on softer guidance.
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