June quarter production enabled FY16 to reach the top end of the guidance range at 305,084 ozs. Macquarie notes the company expects to exceed this in FY17.
The broker expects a pay-out target of 60% of profit and, given the company is ex capex, believes a consistent dividend yield as high as 6% is possible from FY18. Macquarie retains a Neutral rating. Target is reduced to $3.60 from $3.80.
Target price is $3.60.Current Price is $3.60. Difference: $0.00 – (brackets indicate current price is over target). If RRL meets the Macquarie target it will return approximately 0% (excluding dividends, fees and charges – negative figures indicate an expected loss).