CMM has reduced its gold hedge book by 52koz. The reduction was in the shorter-term hedges, which provides CMM with 100% exposure to the spot gold produced through to the end of 2025. CMM’s remaining hedge commitment is 55koz @ A$2,327/oz maturing during 2026. The hedge re-structure cost A$69.6m and was funded from CMM’s cash reserves. The increased exposure to spot gold prices is a positive in our view and we reiterate our BUY rating on CMM. An updated resource estimate for Karlawinda is due to be released in the next few weeks presents a key near-term catalyst for CMM. The recent fall in the spot gold price drives a 1% reduction in our price target to A$6.60.
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