CYL has released some impressive drill results at the Trident deposit that looks to have extended mineralisation 430m along strike and 600m below the current resource. We have increased our mining inventory assumption for Trident by 25% to reflect the positive drilling results, extending the life of the project by a year. The company has also announced the sale of the Henty Gold Mine for a total consideration of A$50m. In addition, CYL has secured access to a gold processing plant in Victoria, which could unlock value for its Four Eagles project. The removal of Henty drives cuts to our earnings forecasts. However, this has been more than offset by continued strength in spot gold prices and we lift our price target 5% to A$6.20 and reiterate our BUY rating.
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