Catalyst Metals Boosts Ore Reserves, Lays Out Plan to Double Gold Production

Australian gold producer Catalyst Metals (ASX:CYL,OTC Pink:CTYMF) provided its latest three year production guidance and an update on its group ore reserve estimate on Wednesday (September 11).

Its ore reserves now total 1 million ounces of gold, representing growth of 105 percent in the last 12 months. This increase has allowed the company to boost its annual output guidance to 200,000 ounces, up from 100,000 ounces.

Catalyst states that because of the infrastructure it has available, increasing its gold production will require pre-production capital of only AU$31 million over the course of 18 months.

The funds will be used across three separate mine developments: Plutonic East, K2 and Trident. Each development will occur after the other, with Plutonic being transitioned from a remnant mine to a new one.

In addition, Catalyst is planning a AU$25 million exploration campaign for its 2025 fiscal year. Work will centre on resource drill outs for Plutonic East, K2 and Trident, with the goal of extending their lives to five years with annual gold production of more than 20,000 ounces each. The company will also drill out nine new in-mine areas at Plutonic.

Furthermore, Catalyst will spend AU$7 million on a reverse-circulation exploration program at the Plutonic belt's Overthrust and Cinnamon corridors. This will be aimed at generating more resource targets.

“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,” said James Champion de Crespigny, managing director and CEO of Catalyst.

Catalyst generated AU$54 million in free cashflow in its 2024 fiscal year, with cash and bullion of AU$44 million today.

Looking forward to its 2025 fiscal year, Catalyst said it is forecasting gold output of 105,000 ounces to 120,000 ounces, with that amount rising to a range of 145,000 ounces to 165,000 ounces the year after that. During its 2027 fiscal year, the company sees production rising to 180,000 to 220,000 ounces of the yellow metal.

By that time, output will be coming from Plutonic underground, Plutonic East, K2, Trident underground and Henty.

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Securities Disclosure: I, Gabrielle de la Cruz, hold no direct investment interest in any company mentioned in this article.