The repayment of the gold loan is an important final balance sheet de-risking event for CYL. Delivering on its three-year growth targets is well underway with development of Plutonic East progressing to plan, with production set to commence in early 2025. Our production forecasts for CYL sit at the bottom of the guidance ranges recently released for the next three years. The stock is trading on impressive free cash flow yields of 28-43% for FY26-FY28 and we see upside risk to our base case production forecasts, largely driven by potentially higher mining rates at Plutonic Main. We are reiterating our BUY rating and A$4.70 price target on CYL, noting that the company has the capacity to generate its market capitalisation in cash flow in just over three years.
To access the full report please log in under the Research Portal at the bottom of this page.
Argonaut’s Research Portal allows you to access Argonaut’s wealth of Research, as well as view descriptions of the Morning Note, companies covered and the team.
If you would like to access our research please contact us to create an account.
