SBM’s 2QFY25 production result was soft with 10.3koz produced at Simberi, down 16% QoQ and 42% below our estimates. Production at Simberi was impacted by mining fleet availability, unexpected ore dilution and mill throughput constraints. SBM’s FY25 guidance of 65-75koz remains unchanged although management is now guiding to the lower end of this range. Given the lower 2QFY25 production result we have lowered our FY25 production forecast from 68koz to 60koz. Changes to our FY25 production forecast result in a -A$18m adjustment to our FY25 earnings. Lower FY25 earnings are offset by recent gold price movements resulting in no change to our A$1.00 Price Target. Speculative Buy Maintained.
To access the full report please log in under the Research Portal at the bottom of this page.
Argonaut’s Research Portal allows you to access Argonaut’s wealth of Research, as well as view descriptions of the Morning Note, Companies covered and the Team.
If you would like to access our research please contact us to create an account.