Catalyst ups 3Y gold production guidance by 100,000oz on back of 1Moz resource

Catalyst Metals (ASX:CYL) has – on the back of the 1Moz resource it’s grown over the last 12 months – boosted 3Y gold production guidance by 100Koz.

That brings total guidance to 200,000oz – and the company expects it can do this spending no more than $31M on the expansion. That spend would come from the $54M of free cash flow (and bullion) it clocked to wind up FY24.

Its Plutonic gold mine will be processing new virgin ore sources, all cards in order, at the end of the 18-month expansion program. Four different deposits will feed into a single processing plant.

“In doing so, Catalyst intends to create a foundation for the future, whether inorganic growth or exploration only on the Pltuonic Gold Belt,” it wrote on Wednesday.

“A year after consolidating the Plutonic Gold Belt, Catalyst has a strong balance sheet, stable operating cashflows and a pipeline of low-cost developments. What is all the more exciting is the opportunity to now turn our attention to growth through exploration,” Catalyst CEO James Champion de Crespigny said.

“The Plutonic gold belt is an attractive exploration opportunity with the very real possibility of a significant discovery. The historically fractured and foreign ownership of Plutonic has led to a considerable lack of exploration along the belt.”

As for the near term, Catalyst expects FY25 production to come in at a ceiling of 120Koz (105Koz low.) Plutonic Underground, Plutonic East and the Henty mines will provide the ore to get there. The company continues to develop other sources.

In FY26, the company calculates it will produce between 145Koz – 165Koz; in FY27, 180Koz – 220Koz.

CYL last traded at $2.20.