Ramelius resources has extended forward guidance out to FY30, with a substantial uplift in gold production forecast from FY25 onwards.
In the near term, an uplift comes from a two year life extension at the high-margin Vivien mine, overlapping with high-grade ore from the Penny project, explains Morgans.
Management has flagged price pressures in the coming years, with tighter margins only partially offset by higher production forecasts. The broker maintains its Add rating and lowers its target price to $2.05 from $2.24.
Sector: Materials.
Target price is $2.05.Current Price is $1.77. Difference: $0.28 – (brackets indicate current price is over target). If RMS meets the Morgans target it will return approximately 14% (excluding dividends, fees and charges – negative figures indicate an expected loss).
