CYL’s 4QFY24 result was strong with group production of 31.7koz 14% higher than we had expected. The beat was largely driven by Plutonic, which achieved an annualised production rate of ~100kozpa in the 4QFY24. We note that the strong production result translated to impressive free cash flow generation, enabling CYL to lift its cash balance to A$37m. We have upgraded our FY25 production forecast by 4% to reflect the higher exit rate for Plutonic, which combined with the strong 4QFY24 result has driven material upgrades to near-term earnings for CYL. We have lifted our price target 16% to A$2.20 on the back of the stronger cash balance and improved earnings outlook and reiterate our BUY rating on CYL.
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