CYL has released a detailed mine plan for the Trident project at Plutonic, including a maiden reserve. The Trident project will be developed initially as a small open pit and then move underground. The early ore from the open pit has materially reduced the pre-production capital cost to just A$19m. The reserve grade was also higher than we had expected, and we have increased our mining inventory assumption and production rate for Trident to reflect this. Incorporating an earlier start through the open pit and higher grades has translated to 3-5% upgrades to our production forecasts for CYL, which combined with similar increases in our near-term gold price forecasts has translated to material upgrades to our earnings outlook for CYL. With greater clarity on the production outlook, we move from SPEC BUY to BUY and lift our price target 12% to A$1.90.
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