CYL’s 2QFY25 result was strong with gold production broadly in line with our forecasts, underpinned by a solid performance at Plutonic. Cash generation was ahead of our expectations, with CYL now sitting on A$84m, a rise of A$26m over the quarter. We have reduced our AISC assumptions by ~4% for FY25 and FY26 to reflect the stronger performance, while our production estimates are largely unchanged. CYL is now well placed to execute its satellite mine developments at Plutonic East, Trident and K2 and undertake a 180,000m drilling program. We reiterate our BUY rating, lifting our price target 6% to A$5.30 due to the improved earnings outlook.
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