CYL’s 3QFY24 result was strong. Gold production of 28.1koz was 6% higher than we had expected, with both Plutonic and Henty beating our estimates. The stronger volumes translated to lower AISC, which were 19% lower than we had anticipated. Gold sales were 20% ahead of our estimates. This resulted in CYL reporting a stronger cash position of A$16.4m, with net debt of A$22.5m, 41% lower than we had anticipated. Encouragingly, CYL has indicated it has begun to assess other regional growth options, that could provide capital light options to add tonnes to the Plutonic mill. We reiterate our SPEC BUY rating and lift our price target 15% to A$1.50 after incorporating the strong 3QFY24 result.
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