EPS missed estimates, but more worrisome was the cut in production guidance. Equipment issues and delays in getting access to higher-grades at Fekola were the main issues. Year forecast now calls for 800,000+ ounces, down from up to 940,000 ounces. Q2 production fell 19%, to 212,508 oz. Revenue rose 4.6% on higher gold prices. EPS was 6c vs 7c expected. The company has promised improvement, and consensus does still call for strong earnings growth in 2025. The stock is very cheap at 8X earnings. With $560M current cash and very high cash flow, the dividend does not HAVE to be cut, but of course is not guaranteed. The price is right, here, but with more 'screw ups' investors may take a wait and see approach. The new valuation makes it a HOLD, but otherwise it is hard to get excited about its prospects.
5i Research Answer: