Gold production was ahead of estimates in the December quarter, although Morgan Stanley notes costs are elevated. The company is now expecting the upper end of cost guidance.
The broker does not necessarily consider this negative, as several satellite pits achieved commercial production in FY20 and this may have caused the cost uplift.
There is potential to add value over the next 12 months, in the broker’s view, from exploration.
Equal-weight. Target is reduced to $4.70 from $4.75. Industry view is In-Line.
Target price is $4.70.Current Price is $4.64. Difference: $0.06 – (brackets indicate current price is over target). If RRL meets the Morgan Stanley target it will return approximately 1% (excluding dividends, fees and charges – negative figures indicate an expected loss).