In an exciting update on Wednesday (September 11), Australian gold producer Catalyst Metals (ASX:CYL,OTC Pink:CTYMF) shared its latest three-year production guidance and an update on its group ore reserve estimate. The company’s ore reserves now stand at 1 million ounces of gold, marking a remarkable 105 percent growth in the past year. With this significant increase, Catalyst has revised its annual output guidance to 200,000 ounces, doubling it from the previous 100,000 ounces.
What’s even more impressive is that Catalyst predicts that increasing its gold production will necessitate only AU$31 million in pre-production capital over a span of 18 months, due to the existing infrastructure in place. The allocated funds will be utilized across three separate mine developments: Plutonic East, K2, and Trident. These developments will be staged, with Plutonic transitioning from a remnant mine to a brand-new one.
Moreover, Catalyst has planned a AU$25 million exploration campaign for the fiscal year 2025. The focus of this campaign will be on resource drill-outs for Plutonic East, K2, and Trident, with the aim of extending their operational lives to five years while achieving annual gold production exceeding 20,000 ounces each. Additionally, the company will conduct drill-outs in nine new in-mine areas at Plutonic.
Commenting on the exploration prospects, James Champion de Crespigny, the managing director, and CEO of Catalyst, expressed optimism about the potential for significant discoveries in the Plutonic gold belt due to historical lack of exploration along the belt.
In the 2024 fiscal year, Catalyst generated an impressive AU$54 million in free cashflow, holding AU$44 million in cash and bullion as of today. Looking ahead to the 2025 fiscal year, the company forecasts a gold output ranging from 105,000 to 120,000 ounces, with the following year seeing an increase to 145,000 ounces to 165,000 ounces. By the 2027 fiscal year, Catalyst anticipates production to soar to 180,000 to 220,000 ounces derived from various sources including Plutonic underground, Plutonic East, K2, Trident underground, and Henty.
As Catalyst Metals continues to advance its operations and explore new opportunities, it remains a promising player in the gold sector with a bright future ahead. Stay tuned for more updates by following @INN_Australia for real-time news updates!
(Note: Securities Disclosure: I, Gabrielle de la Cruz, hold no direct investment interest in any company mentioned in this article.)