On Tuesday, Berenberg increased its price target on Resolute Mining Ltd. (ASX:RSG:AU) (OTC: RMGGF) shares to AUD0.76, up from AUD0.72, while reaffirming a Buy rating on the stock. The adjustment follows the mining company's recent release of its second-quarter financial report.
Resolute Mining reported gold production of 90.8 thousand ounces for the quarter, surpassing Berenberg's estimate of 86.3 thousand ounces. The all-in sustaining cost for the period was reported at USD 1,402 per ounce, which was significantly lower than the expected USD 1,651 per ounce.
The company also anticipated higher earnings before interest, taxes, depreciation, and amortization (EBITDA) for the first half of the year. Resolute Mining's forecast of USD 116 million in H1 EBITDA exceeds Berenberg's projection of USD 91 million.
The positive quarterly results have indicated a strong performance by Resolute Mining, with the firm's output and cost efficiency surpassing analyst expectations. The company's solid production figures and favorable cost management have led to the revised price target as it heads into the second half of the year.
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