RED reported quarterly production for the first time post the merger with Silver Lake Resources. Group production, sales and AISC were solid, all within 3% of our estimates. King of the Hills reported a strong beat on output, partially offset by slightly higher AISC. Deflector was solid with a softer production result offset by lower AISC. The positive results from King of the Hills and Deflector was offset by a weaker performance at Mt Monger, which reported lower production and higher AISC. RED has indicated it will provide formal guidance for FY25 at its FY24 earnings result in August. We have made only minor adjustments to our earnings forecasts after incorporating the 4QFY24 result. Our price target rises 4% to A$0.54 due to the higher spot price and we reiterate our BUY rating.
To access the full report please log in under the Client Area at the bottom of this page.
Argonaut’s Client Area allows you to view delayed share prices, access Argonaut’s wealth of Research as well as create custom portfolios and set up company watch lists.
If you would like to access our research please contact us to create an account.