LTR has provided an updated mine plan targeting 2.8mtpa of mining and processing, with an optimised focus on high margin ore in an effort to reduce and control costs. We view the 2HFY25 guidance, provided for the first time, as a positive which highlights lower costs and a glimpse at steady state production metrics. LTR is targeting further cost reduction over FY25, and noted that all project development and growth capex is expected to be completed by the end of FY25. LTR had A$263.1m in cash at the end of September and is funded following the securing of the US$250m convertible note. The ongoing ramp-up at Kathleen Valley and execution of cost saving initiatives are near-term catalysts. We are reiterating our BUY rating but lower our price target to A$1.20.
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