CYL has released its annual reserve and resource update. The company has delivered impressive growth in both reserves and resources over the past year. Reserve now exceeds 1.0moz, although we note that reserves were previously disclosed with production guidance in early September. Resources have been adjusted for mine depletion at Plutonic Main and Henty. The additional of the regional resources at Plutonic have lifted group resources to nearly 3.5moz, with these regional deposits also previously disclosed. CYL is generating strong cash flow and boasts an impressive growth profile, with group production forecast to rise from ~110koz in FY24 to +180koz in F27, with the growth underpinned by developing satellite ore feed from regional deposits at Plutonic. We are upgrading our price target by 2% to A$4.50 after incorporating the updated resource estimate and accounting for movements in spot gold prices. Our earnings forecasts are largely unchanged, and we reiterate our BUY rating.
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