Gold production in the December quarter was below expectations. While production from Syama sulphide was softer, Macquarie expects the underground operation to ramp up to full capacity over the next six months.
Full year guidance is maintained for 300,000 ounces per annum. Outperform rating and $1.60 target maintained.
Target price is $1.60.Current Price is $1.19. Difference: $0.41 – (brackets indicate current price is over target). If RSG meets the Macquarie target it will return approximately 26% (excluding dividends, fees and charges – negative figures indicate an expected loss).