RRL has approved the development of the Garden Well Main underground and the Stage 3 extension of the Rosemont underground at its Duketon South operations. Garden Well Main should add 60-70kozpa to the production profile while Rosemont Stage 3 extends the current 40-50koz production rate. Incorporating these projects extends the life of Duketon South by 2.5 years from our prior base case. RRL is looking to add additional underground and open pit material to boost the medium-term outlook for Duketon to 200-250koz. We expect RRL to increase focus on the Duketon South area, and given the poor economic return, we have removed the McPhillamys project from our forecasts, freeing up additional capital to develop additional ore feed at Duketon. We reiterate our HOLD rating and lift our price target 5% to A$2.30.
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