The company’s 2020 production guidance of 500,000 ounces is in line with Macquarie’s expectations while guidance for AISC of US$980/oz is -19% below forecasts.
Macquarie expects production will peak in 2020 and lifts long-term cost assumptions. If operating stability is achieved, the broker believes de-leveraging will be a key positive catalyst for the stock in 2020.
Outperform rating maintained. Target is reduced by -19% to $1.30.
Target price is $1.30.Current Price is $1.17. Difference: $0.13 – (brackets indicate current price is over target). If RSG meets the Macquarie target it will return approximately 10% (excluding dividends, fees and charges – negative figures indicate an expected loss).