CYL has recently grown its reserve to 1.0Moz which underpins the production ramp-up from 100koz to >180koz by FY27 driven by the development and ramp-up of the satellite deposits at Plutonic East and Trident. We have forecast a strong growth in Ebitda and free cash flow from A$71m and A$33m in FY24 to ~A$412m and A$262m in FY27 respectively. Free cash flow yields over the remainder of the decade are attractive, averaging 30%. A key catalyst is exploration results (A$25m budgeted for FY25) which is targeting LOM extension to 5 years from Plutonic East, K2 and Trident. We are reiterating our BUY rating on CYL and maintain our price target of A$4.70. We believe the recent share price pull back provides a buying opportunity, with fundamentals unchanged and a constructive view on gold pricing driving the strong free cash flow generation in our forecasts.
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