Ramelius Resources' (ASX:RMS) production outlook for fiscal 2027 and fiscal 2028 is moderately below expectations, although it is offset by forecasts for lower operating costs and an "exceptional" forward outlook for fiscal 2029 and fiscal 2030, Euroz Hartleys said in a Monday note.
At the midpoint, the company guided for fiscal 2027 production of 215,000 ounces and fiscal 2028 production of 275,000 ounces, both falling short of consensus estimates. But its output guidance for fiscal 2029 and fiscal 2030 is above consensus forecasts, partly supported by an expansion in processing capacity at its Mt Magnet operations.
The Mt Magnet expansion and Rebecca-Roe development are due to ramp up separately, which reduces concurrent commissioning requirements and execution risk, Euroz Hartleys said.
Meanwhile, Ramelius' exploration success at its Galaxy, Cue, and Dalgaranga projects has allowed higher-grade ore to displace lower-grade feed, a large contributor to back-end production upgrades, the equity research firm added.
"We continue to be confident that Ramelius Resources' superior cashflow outlook against its peers will result in a share price re-rate over fiscal 2027 as investors start to look toward future cashflows," Euroz Hartleys said.
It maintained a buy recommendation on Ramelius with an unchanged AU$5.04 price target.
The company's shares rose 4% in recent Tuesday trade.