KEY POINTS
Quarter highlights
- Plutonic and Henty quarterly production 24,576oz and 6,926oz
respectively – both representing the most successful production
quarters under Catalyst ownership
- Cashflows from operations allowed Catalyst to end the quarter
with $37m in cash and bullion,
$45m liquidity and only $8m debt in the form of a 2,220oz gold loan
repayable in six, monthly instalments
- Studies confirmed Trident and Plutonic East as near-term,
low-cost development priorities
- Reported maiden Ore Reserve Estimate for Trident, increasing
group Reserves to 793koz
Production
- Gold produced for the quarter totalled 31,502oz at an average
AISC of A$2,352, comprising:
- Plutonic: 24,576oz gold produced at an AISC of
A$2,291/oz
- Henty: 6,926oz gold produced at an AISC of A$2,524/oz
Discovery and Growth
- High grade assays from shallow drilling was incorporated into
Trident's maiden Ore Reserve Estimate (ORE) of 188koz at
4.5g/t
- ORE provided the foundation for updated, lower cost, lower risk
development Trident – key metrics at A$3,400/oz:
- $15m pre-production
capital drawdown
- Initial 5.5 year life of mine; average underground production
of 37koz pa
- AISC of A$1,592/oz
- Average annual free cashflow of A$53m; NPV7 A$198m
- Dewatering at Plutonic East underway with plans to commence
rehabilitation and grade control in Q1 FY25
Financial and Corporate
- As of 30 June 2024, the Company
held cash of $31m, bullion of
$6m and undrawn facilities of
$8m
- All inherited call options delivered into, leaving Catalyst
unhedged – previous realised prices last quarter of $3,130/oz versus spot of A$3,490/oz (at end of quarter)
- Continued debt repayments totalling $11m, leaving only a 2,220oz gold loan
PERTH,
Australia, July 24, 2024 /CNW/ -
OVERVIEW
Operating models at Plutonic and Henty are now well
established. Both sites are consistently performing at
elevated, and now entrenched, operating metrics. Importantly
the turnaround in in site safety has been maintained. Under
Catalyst's ownership TRIFR rates at Plutonic have nearly halved –
safety remains a core focus for both sites.
Plutonic produced at a ~100koz per annum run rate for the
quarter, the highest quarterly production under Catalyst's
ownership. This was despite a transformer needing replacement
which impacted production for 3 days.
Learnings from the turnaround of operations at Plutonic are now
being implemented at Henty. Production at Henty for the
quarter was the highest under Catalyst's ownership and reflects the
investment in equipment, improved planning and deployment of new
people to the Henty site. During the quarter, Henty continued
construction of the tailings storage facility lift which is
reflected in costs for the quarter.
Catalyst's project development team has continued to prioritise
the development and exploration opportunities across the
belt. The team has commenced re-estimating Resources
and commenced engineering designs. Updates will be provided as this
work progresses.
In Victoria, the Company
continues to progress plans for the submission of an Environmental
Impact Statement for the proposed exploration access tunnel at Four
Eagles.
During the quarter Catalyst repaid the final $3m tranche of a convertible note acquired
through the acquisition of Vango Mining Limited.
MANAGEMENT COMMENTARY
"This has been another successful quarter for the Company,
with well-established operating models at both Plutonic and Henty
delivering consistent gold production at the highest levels seen
under Catalyst's ownership.
"Our near-term development plans are progressing at pace,
with additional deposits expected to come online to provide
additional ore feed for the under-utilised Plutonic mill in
2025. We are extremely pleased with the faster-than-expected
dewatering at Plutonic East, with existing permits and
infrastructure allowing for a rapid and low-cost restart.
Similarly, the shallow high-grade results from drilling at Trident
have allowed a revised open plan development approach for the
deposit, which will have a more manageable upfront capital profile
than previously expected.
"It is particularly pleasing to note that the consistent
increased level of gold production from the existing deposits has
allowed the team time to refine the development approach for
Trident, providing this new low-cost option and the flexibility to
fund the development from strong operational cashflows.
"The Company finishes the quarter in a solid position, with a
consolidated balance sheet, stable operations and a long pipeline
of near-term, low-cost organic growth projects."
SAFETY
Since taking control of Plutonic on 1
July 2023, Catalyst has overseen a significant improvement
in safety. This is evidenced in the 12month moving average
TRIFR dropping from a peak of 24.7 in September to 10.8 at the end
of June. Delivering a robust safety culture and ensuring our
people go home safely remains our commitment.
A minor, restricted work injury was recorded in late June.
This was the only reportable incident for the quarter.
No injuries were recorded for the quarter at Henty.
Table 1: June 2024 group safety
performance (12-month moving average)
|
Plutonic
|
Henty
|
TRIFR
|
10.8
|
9.5
|
LTIFR (per million
hours worked)
|
-
|
6.3
|
OPERATIONS
Plutonic Gold Operations
The focus for the June quarter remained reinforcing our safety
culture and ensuring consistent production performance.
Key production indicators of the mine; development metres,
production drill metres, material movement and gold production were
consistent with previous quarters and reflect the new operating
performance. Gold produced was 24,576oz vs prior quarter of
21,252oz at an AISC of $2,291/oz vs
prior quarter of $2,346/oz.
This was a strong result despite an electrical failure of a
transformer impacting the primary underground fan and restricting
access to areas of the mine for approximately a week.
There was a continued focus on mine planning . Plutonic's mine
planning has improved considerably in the past 12 months and has
been fundamental to supporting production to date. Building
adequate drill stocks to support mine planning was also a focus
during the quarter and a fourth drill rig was utilised to achieve
this. At the end of the quarter there were +100kt of drill
stocks on hand, creating increased flexibility and contingency into
the mine plan.
Plutonic is progressively de-bottlenecking its underground
operations. Remote loader capacity is seen as the next
bottleneck, and in the coming months Plutonic will replace hire
equipment with rebuilt Sandvik tele-remote loader units. A
new Sandvik loader will be purchased to provide greater reliability
and flexibility. This fleet renewal program commenced
in the quarter and will continue until late in Q1 FY25.
As production metrics continue to normalise at the new levels,
the focus is gradually shifting to reviewing costs. Major
contacts are being retendered and renegotiated as they become due,
with pleasing initial results from these negotiations.
Henty Gold Mine
During the quarter, Henty's mill operated at its nameplate
production run rate of 300,000 tonnes per annum for the first times
since 2008. This throughput was supported by improved mine
operating metrics including material movement, development metres
and ore movement.
Gold recovered was 6,926 oz vs prior quarter of 6,832oz.
This was the highest quarterly production under Catalyst's
ownership. Increased production translated to lower AISC for
the quarter of $2,524/oz vs prior
quarter of $2,712/oz.
Table 2: Henty operating metrics
Studies are underway in relation to the expansion of the
processing plant and are expected to be completed in the coming
quarter.
Construction of the tailings storage facility lift was completed
during the quarter and will provide capacity for the coming 10
months. Work has commenced on the design, approvals and permitting
of the next lift.
EXPLORATION AND DEVELOPMENT
Important for Plutonic's longer term success is identifying new
material in virgin areas near existing underground mine
infrastructure. Exploration drives have been established at
the Western Front and drilling commenced during the quarter.
This potential new virgin area in the Plutonic underground is
expected to be drilled out over the coming two quarters.
During the quarter Catalyst released a maiden Ore Reserve
Estimate for the Trident open pit and underground deposit.
This ORE supported a revised development plan for Trident, being a
small open pit (or large box cut), followed by a portal and decline
directly above the Trident underground orebody. The new
approach to Trident's development results in the portal being
within 30m of the orebody. It
makes for a more manageable project for Catalyst and reduces up
front capital expenditure, lowering funding requirements. The
revised portal location also better positions the mine for future
grade control drilling, ventilation, haulage and in-mine resource
development and exploration.
Table 2: Trident development – key
metrics1
|
|
Base case
#
|
Spot case
(A$3,400/oz)
|
NPV7
|
$Am
|
100
|
198
|
IRR
|
%
|
146 %
|
327 %
|
Pre-production cash
drawdown
|
$Am
|
19
|
15
|
AISC (life of
mine)
|
A$/oz
|
1,578
|
1,592
|
Life of mine
(LOM)
|
yrs
|
5.5
|
5.5
|
Payback (after open
pit ceases)
|
yrs
|
1.9
|
1.4
|
Average annual UG
production
|
koz
|
37
|
37
|
Average annual free
cash flow
|
$Am
|
29
|
53
|
# Base case price
assumptions aligned with Ore Reserve (A$2,700 for Underground and
A$3,200 for Open Pit)
|
The dewatering of the Plutonic East underground mine commenced
in May. Rehabilitation will commence in the coming weeks once
the water level has dropped to a satisfactory level. This
will be followed shortly after by mine services being
restored. Catalyst is targeting first ore from Plutonic East
in Q3 FY25.
Beyond Plutonic East and Trident, the major opportunity at
Plutonic remains its excess mill capacity. The processing plant has
a nameplate capacity of 1.8Mtpa but is currently operating at
1.3Mtpa. Numerous deposits lie across the belt capable of
being processed by the central processing facility. Any new
ore source can be delivered to the Plutonic mill due to the network
of existing haul roads extending the full 48km length of the
Plutonic Belt.
Evaluation of the numerous advanced and early-stage
opportunities across the consolidated Plutonic Gold Belt progressed
during the quarter with re-estimations and optimisations in
progress for the highest priority resource positions. Such
work has informed the design of the next round of resource
development which is now under way. Updates will be provided
as this work progresses.
__________________________________
1 Refer to CYL announcement 3 July 2024 "Trident
Maiden Reserve Underpins New Low-Cost Development"
|
Victorian Gold Exploration
Exploration in Victoria during
the quarter included the completion of logging and sampling of
Tandarra drill core. Exploration for Catalyst in Victoria remains limited while discussions
with the government over the Exploration Access Tunnel remain
ongoing.
A diamond drilling program is anticipated to commence in the
coming quarter at the Four Eagles Gold Project. Planning for
this drill program and project development studies was undertaken
during the June quarter.
Four Eagles Gold Project and Licencing of the Exploration
Access Tunnel
The Four Eagles Gold Project comprises a gold Resource of
163,000oz at 7.7g/t gold, including the Iris Zone of 70,000
at 26g/t gold. It also includes numerous gold prospects, four of
which are Boyd's Dam, Hayanmi, Pickles and the Iris Zone (Figure 1
and Figure 2). Management's main focus at the Four Eagles
Joint Venture is to seek approval to construct an access tunnel to
explore underground. Gaining approval to explore underground
will allow Catalyst to better understand and further explore
mineralised positions in detail.
Collaboration with Victorian Government's Department of Energy,
Environment, and Climate Change commenced in late 2022 and remains
ongoing.
FINANCE
Cash and Equivalents
At the end of the June 2024
quarter, the Company had available liquidity of A$45 million, comprising cash ($31m), bullion on hand ($6m) and undrawn debt facilities ($8m).
During the quarter Catalyst repaid the final tranche of a
$3.0 million of a convertible note
inherited through the Vango Mining acquisition. The remaining
debt held by Catalyst is a 2,220oz gold loan which was put in place
by Catalyst's predecessors – Superior Gold Inc. This gold
loan is to repaid in six remaining monthly instalments of
370oz. This represents less than 2% of annual production.
Catalyst also repaid the last of its call options inherited
through the acquisition of Superior Gold Inc. The Company has
delivered into 25,000oz of inherited call options over the past
financial year at prices that averaged A$2,910/oz. Settlement of these call
options provides Catalyst with increasing exposure to the
prevailing spot gold price going forward.
During the quarter, the Company generated $38m of cash from operations. A total of
$5 million was invested in growth
exploration activities across the Company's portfolio. $8m of capital was deployed with $11m of net financing outflows primarily from the
repayment of the working capital facility that remained undrawn at
30 June 2024.
Hedging
At the end of the June quarter, the Company had fully delivered
into contracted hedges. Catalyst begins FY25 with
greater exposure to the prevailing spot price.
This report has been approved for release by the Board of
Directors of Catalyst Metals Limited.
Corporate summary
(at 30 June 2024)
|
ASX trading
code
|
CYL
|
Quoted shares
(CYL)
|
224,582,544
|
Unquoted
options
|
3,357,010
|
Unquoted performance
rights
|
5,941,354
|
Postal
address
|
PO Box
1784
|
|
West Perth, WA
6872
|
Telephone
|
(+61) 8 6324
0090
|
E-mail
|
Investors@catalystmetals.com.au
|
Website
|
www.catalystmetals.com.au
|
JORC 2012 Mineral Resources and Reserves
Catalyst confirms that it is not aware of any new information
or data that materially affects the information included in the
original market announcements and that all material assumptions and
technical parameters underpinning the estimates in the relevant
market announcements continue to apply and have not materially
changed. The Company confirms that the form and context in which
the Competent Persons findings are presented have not been
materially modified from the original market announcements.
Figures & Diagrams
Table 3: June 2024 quarter
performance summary – by production centre
3 MONTHS
ENDING 30 JUNE 2024
|
Units
|
Plutonic
|
Henty
|
Total
|
Ore Mined
|
Tonnes
|
299,186
|
78,274
|
377,460
|
Milled Tonnes
|
Tonnes
|
320,785
|
75,000
|
395,785
|
Head Grade
|
g/t
Au
|
2.82
|
3.17
|
2.88
|
Recovery
|
%
|
84.5 %
|
90.5 %
|
85.8 %
|
Gold Produced
|
oz
|
24,576
|
6,926
|
31,502
|
Gold Sold
|
oz
|
20,641
|
7,338
|
27,979
|
Average Price
|
A$/oz
|
3,1202
|
3,190
|
3,138
|
Total Stockpiles Contained Gold
|
oz
|
701
|
801
|
1,502
|
Gold in Circuit (GIC)
|
oz
|
2,595
|
1,280
|
3,875
|
Total Gold
Inventories
|
oz
|
3,296
|
2,081
|
5,377
|
Underground
Mining
|
A$/oz
|
1,307
|
1,462
|
1,348
|
Processing
|
A$/oz
|
404
|
319
|
381
|
General and
Administrative
|
A$/oz
|
391
|
265
|
358
|
Ore Stock &
GIC Movements
|
A$/oz
|
(45)
|
1
|
(33)
|
Cash Operating Cost
|
A$/oz
|
2,057
|
2,047
|
2,054
|
Royalties
|
A$/oz
|
91
|
211
|
122
|
Rehabilitation
|
A$/oz
|
130
|
4
|
11
|
Sustaining Capital
|
A$/oz
|
13
|
262
|
165
|
All-in Sustaining Cost
|
A$/oz
|
2,291
|
2,524
|
2,352
|
_______________________________________
|
2 Plutonic
gold sale price lower due to various financial instruments set in
place by previous owners as part of the gold loan held between the
company and its lender, Auramet.
|
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SOURCE Catalyst Metals LTD.