Emerald Resources (ASX:EMR) delivered June quarter gold production within quarterly guidance despite missing its full-year production target, while strong margins, low costs and solid cash generation supported its long-term growth outlook, Euroz Hartleys said in a Thursday note.
The company produced around 27,000 ounces of gold from its wholly owned Okvau mine in Cambodia during the June quarter, lifting fiscal 2026 output to around 100,000 ounces, below its guidance of 105,000 to 120,000 ounces and slightly under the research firm's forecast of 102,000 ounces.
All-in sustaining costs (AISC) for the June quarter are expected at around $880 an ounce, near the lower end of guidance, with fiscal 2026 costs forecast to remain within the company's guided range.
Euroz Hartleys said cash and bullion rose 18% quarter-on-quarter, lifting total liquidity to about AU$468 million, with the balance likely to increase further by quarter-end due to the timing of gold sales and receipts.
The research firm estimated an average realized gold price of about $4,520 per ounce for the quarter, implying an AISC margin of roughly $3,640 per ounce, with Okvau still generating strong cash flow despite higher growth capital expenditure.
The research firm cut its fiscal 2026 production forecast to 100,000 ounces while keeping costs at $995 per ounce, and also lowered fiscal 2027 and fiscal 2028 output estimates to 120,000 and 287,000 ounces respectively, citing a slower ramp-up at Dingo Range and Memot projects.
It also cut its net asset value estimate 1% to AU$7.17 per share but kept a positive view, citing the company's unhedged gold exposure, rising production, exploration success, and strong balance sheet supporting full funding of its development pipeline.
Euroz Hartleys maintained its buy recommendation on Emerald Resources and lowered its price target to AU$7.75 per share from AU$8.15 per share.