The company has pre-released September quarter gold production, the first to include the newly-acquired Mako mine. Overall, production beat Citi’s estimates by 5%.
While investors may be concerned by weak numbers at Syama, on further scrutiny the broker notes there is no change to the ramping up of the underground.
Mako, in Senegal, was the positive surprise while Syama missed forecasts as maintenance to the crusher and roaster affected the gold being poured.
Buy/High Risk rating maintained. Target is $2.40.
Target price is $2.40.Current Price is $1.45. Difference: $0.95 – (brackets indicate current price is over target). If RSG meets the Citi target it will return approximately 40% (excluding dividends, fees and charges – negative figures indicate an expected loss).