CYL’s 1QFY25 result was solid with all key metrics coming in within 2-4% of our forecasts. A stronger performance at Plutonic, particularly on costs, more than offset a weaker quarter at Henty, which was impacted by a planned shutdown due to the installation of a new grade control system. CYL generated strong cash flow during the period, with cash and bullion rising ~A$21m. Near-term exploration is focused on extending the mine lives of Plutonic East and K2 to five years as well as extension drilling at Trident and Plutonic Main. Incorporating the solid start to the year drives minor adjustments to our earnings forecasts, however the recent rise in spot gold prices underpins a 4% lift in our price target to A$4.70 and we reiterate our BUY rating on CYL.
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