CYL’s 2QFY25 result was solid, with production broadly in line with our estimates. We note that production and the cash balance had been pre-released, with cash generation better than we had anticipated. The stronger cash performance reflected lower group AISC, which came in 6% lower than we had forecast. We have left our production forecasts unchanged, and lower AISC 1-2% to reflect the impressive performance at Henty. CYL has commenced a 180,000m drilling program, focused on both near-mine and regional targets. Guidance ranges have been left unchanged and our forecasts remains within these ranges. We are reiterating our BUY rating on CYL, lifting our price target 2% to A$5.40 after incorporating the 2QFY25 result.
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