RRL’s 1HFY25 result was in line with our expectations. The updated reserve and resource estimate for Tropicana largely replaces depletion, with some increased ounces underground in reserve. We have incorporated the new updates into our forecasts, with some modest near-term increases in production at Tropicana offset by lower output beyond FY30 and higher AISC. Guidance ranges remain unchanged for FY25, which imply production will fall 6-21% in the 2HFY25, largely due to lower output at Tropicana. Changes to our earnings outlook are mixed, with the longer-term reductions for the outlook at Tropicana driving a 5% cut to our price target to A$3.50 and we reiterate our HOLD rating on RRL.
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