Catalyst Metals Reports 24,329oz Gold at A$2,765/oz, Advances Three Plutonic Projects
Catalyst Metals has agreed to sell its Henty gold mine, focusing resources on expanding its Plutonic Gold Belt projects with promising exploration results and first ore from Plutonic East. The company maintains a strong cash position of A$98 million while advancing low-capital developments to double production.
- Binding agreement to sell Henty gold mine to Kaiser Reef Limited
- First stoping ore delivered from Plutonic East project, self-funded development
- 320,000m drilling program underway at Plutonic Belt with encouraging Trident results
- Cash and bullion balance of A$98 million, debt-free
- Secured 12-year option for processing at Maldon plant for Four Eagles project in Victoria
Strategic Simplification and Focus
Catalyst Metals Limited (ASX: CYL) has taken a decisive step to streamline its operations by entering into a binding agreement to sell the Henty gold mine in Tasmania to Kaiser Reef Limited. This transaction not only simplifies Catalyst’s asset base but also secures a critical processing solution for its high-grade Four Eagles gold project in Victoria, addressing a key hurdle for unlocking value in that asset.
The sale includes upfront cash consideration, deferred gold-linked payments, equity in Kaiser Reef, and a royalty on future production, providing Catalyst with both immediate and ongoing financial benefits. Completion is expected in the fourth quarter of FY2025, with Catalyst continuing to operate Henty until then.
Advancing the Plutonic Gold Belt
With the Henty sale underway, Catalyst is intensifying its focus on the Plutonic Gold Belt in Western Australia, its flagship asset. The company is progressing three low-capital projects, Plutonic East, K2, and Trident, aimed at doubling gold production over the next 12 to 18 months. These projects leverage existing infrastructure and sunk capital, enabling a low-risk, cost-effective development pathway.
Notably, Plutonic East delivered its first stoping ore during the quarter, marking a milestone as Catalyst’s first mine development, funded entirely from operating cash flows. Meanwhile, preliminary works at K2 have commenced, and Trident has received underground mining approval, with open pit permits submitted, keeping the project on track for first ore in the second half of 2025.
Exploration Momentum and Resource Expansion
Catalyst has ramped up exploration with a 320,000-meter drilling program across the Plutonic Belt, deploying ten rigs. Early results at Trident are particularly encouraging, revealing extensions of mineralisation well beyond current resource boundaries, including high-grade zones repeating at depth and mineralisation remaining open 1,300 meters down-dip. These findings suggest a significantly larger mineralised footprint than previously understood, potentially extending mine life and production capacity.
Exploration remains a core pillar of Catalyst’s growth strategy, with increased investment and team expansion aimed at unlocking further discoveries along the belt.
Financial Strength and Operational Performance
During the March quarter, Catalyst produced 24,329 ounces of gold at an all-in sustaining cost (AISC) of A$2,765 per ounce, in line with guidance. Plutonic operations contributed 18,265 ounces at A$2,587/oz, while Henty produced 6,064 ounces at a higher AISC of A$3,283/oz.
The company generated A$46 million in cash from operations and invested A$21 million in project development and exploration. With no debt and a cash and bullion position of A$98 million, Catalyst is well-positioned to self-fund its organic growth plans without reliance on external capital.
Victorian Gold Project Processing Solution
As part of the Henty transaction, Catalyst secured a 12-year option to acquire a 50% interest in the Maldon Processing Facility, a fully permitted and operational plant near its Four Eagles gold project. This strategic move provides a clear pathway to add value to the high-grade Four Eagles resource, which includes the Iris Zone with an impressive 26 g/t gold grade.
Ongoing drilling programs at Four Eagles and the nearby Tandarra project aim to identify further high-grade analogues, with management seeking government approval for an exploration tunnel to facilitate underground access and detailed resource evaluation.
Outlook
Catalyst Metals is executing a clear strategy to consolidate and grow its portfolio, focusing on low-capital, infrastructure-backed projects in the Plutonic Gold Belt while unlocking value in Victoria through processing options and exploration. The company’s strong balance sheet and operational discipline underpin confidence in its ability to deliver on production growth and resource expansion targets.
Bottom Line?
Catalyst’s focused strategy and robust cash position set the stage for a transformative growth phase in Western Australia and Victoria.
Questions in the middle?
- How will the completion timing of the Henty sale impact Catalyst’s near-term cash flow and operational focus?
- What are the risks and timelines associated with the remaining open pit mining approval at Trident?
- Can exploration at Trident and other Plutonic Belt prospects sustain production growth beyond the initial five-year mine plans?
