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Black Cat Syndicate (ASX:BC8) has fallen over -13% in Wednesday morning trades after its FY27 guidance and outlook failed to excite.
The company sees consolidated production of up to 90,000Koz, itself a wholly-owned production increase of up to 30% vs pcp, but not enough to satisfy all investors, exemplified by some feedback on the HotCopper announcement thread.
Not helping matters is that Black Cat sees higher costs associated with its ramp-up at Fingals and Majestic in H1FY27 which brings the cost of mining per ounce up to A$3.9K. A second ramp-up is planned for the Kal East asset to hit “optimised production levels,” with a focus on “understanding the deposit.”
As for AISC prices wholemeal, the company sees improvements in H2FY27 which is largely based around the geological interpretation higher grade ore will be uncovered at Majestic and Fingals.
At the same time that ramp ups have coincided with cost increases for the company, Black Cat’s planning “a number of growth projects” which include ‘preparations for future expansions.’
“Alongside this production ramp-up, we are investing in building resources, mine development, processing capacity and infrastructure that is intended to support the next stage of growth across the business,” BC8 MD Chris Stone said.
“The strategy is now set and these initiatives have already been implemented – initiatives intended to achieve our set guidance,” Stone added, referring to the planned Kal East ramp-up.
But as for FY27 production guidance under 100Koz, that may have been the main headline result which has disappointed investors on Wednesday.
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