The 1QFY25 production result was mixed, with volumes marginally softer at both MATSA and Motheo than we expected, however both operations remain well on track to achieve guidance. The cash flow result was strong, with SFR continuing to de-gear the balance sheet. FY25 guidance has been maintained and highlights 13% CuEq production growth YoY. SFR boasts a large resource base, particularly at MATSA, and we believe the rising M&A activity in the copper sector is likely to see increased value ascribed to this asset. The exploration program to increase LOM to beyond 15 years remains a key catalyst. We maintain our BUY recommendation and our price target of A$13.10 is unchanged.
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