KEY POINTS
Quarter highlights
- Plutonic performance continues to demonstrate operational
improvement since acquisition
- Henty turnaround taking effect with learnings from Plutonic
being implemented there, resulting in a step change in key
operating KPIs since November 2023.
Focus in coming quarters will be on stabilising this
performance
- $9.1m, first tranche of
convertible note repaid, simplifying Catalyst's capital
structure
Production
- Gold produced for the quarter totalled 28,084oz at an average
AISC of A$2,436, comprising:
-
- Plutonic: 21,252oz gold sold at an AISC of A$2,346/oz
- Henty: 6,832oz gold sold at an AISC of A$2,712/oz
- AISC reflects legacy costs, and investment at Plutonic and
Henty including tailings lifts and new mobile equipment
Discovery and Growth
- Trident DFS continues with a focus on minimising execution risk
and ensuring its development occurs in a balanced manner without
causing undue pressure on the company
- Plutonic Belt project development work continues
-
- Since Q2, Catalyst has been cleaning +40 years of data held
across multiple databases, a laborious process required before
re-estimation and engineering designs can occur
- Re-estimation of Resources across the belt progressing with
engineering designs and exploration programs able to now be
planned; periodic updates to occur during 2024
Financial and Corporate
- As of 31 March 2024, available
funds were A$16.4 million
- First tranche of $9.1 million
convertible note repaid using available cash and revolving working
capital facility
- The Company held facilities of $38.9
million comprising $3 million
convertible note, $10.4 million gold
loan, $17.5 million mobile equipment
and $8 million working capital
facility
PERTH,
Australia, May 16, 2024 /PRNewswire/ -
OVERVIEW
The March quarter was the third quarter of consistent
operational performance at the Plutonic gold mine, under Catalyst's
ownership.
The operating model introduced by Catalyst is now further
entrenched. The step change in key operating metrics is
stabilising from one quarter to the next. Turnaround in site
safety has improved considerably under Catalyst's ownership with
TRIFR rates nearly halving. Safety remains a core focus for
the site.
During the quarter, Catalyst's project development team began to
make gains in identifying and prioritising the development and
exploration opportunities across the belt. There has been a
significant effort in the past six months to clean and
collate +40 years of geological data from multiple owners and
data sources. Over the coming months, the team will begin
re-estimating Resources and commence engineering designs. Updates
will be provided as this work progresses.
The definitive feasibility study (DFS) at Trident is focused on
reducing operating and execution risk. Plutonic's operational
success has afforded Catalyst the opportunity to take a more
measured approach to Trident's development. In doing so, the
company can develop the belt in a more balanced manner.
Learnings from the turnaround of operations at Plutonic are now
being implemented at Henty. Henty saw its second consecutive
quarter of improved operational metrics. Fundamental to this
improvement has been investment in equipment, improved planning and
deployment of new people to the Henty site. This equipment
investment and continued construction of the tailings storage
facility lift are reflected in Henty's costs for the quarter.
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 $9.1m of a convertible note acquired through the
acquisition of Vango Mining Limited. The repayment of the
first tranche of the convertible note is a further step in the
consolidation and simplification Catalyst's capital structure.
MANAGEMENT COMMENTARY
"Results for the quarter have been encouraging with
operations at both sites stabilising. Pleasingly, Henty has
maintained five months of rising gold production, lower unit costs
and positioned itself well for a positive Q4.
The March quarter was a stable quarter for Plutonic with
recovered gold of 21,904oz, similar to that of last
quarter.
Henty's turnaround in performance was a focus for the
quarter. Pleasingly, the quarter demonstrated an ability to
increase the mining rate to take up latent mill capacity –
historically, the processing plant has been limited to processing
at the mining rate of 260ktpa rather than at its nameplate
processing capacity of 300ktpa. Henty's previous mining rate
was 260kt. This quarter, mining rates increased considerably to
300ktpa. Ongoing debottlenecking of the site will be a focus going
forward.
The project development team continues to evaluate the
Plutonic belt development pipeline, methodically working through
the numerous exploration and development opportunities across the
belt – a laborious process requiring the
collating, cleaning, re-estimating and designing of decades of
poorly maintained data. Trident remains an important
near-term development, however a more tempered approach to its
development allows Catalyst to develop the belt in a more balanced
manner rather than placing all its future in the Trident
basket."
SAFETY
The new Safety Leadership Team at Plutonic has focussed on
building a strong safety culture at site. Since taking
control of Plutonic on 1 July 2023,
Catalyst has seen a significant improvement in safety and achieved
in excess of six months injury free operations.
Disappointingly, a minor slip injury was sustained during a normal
work event in late March 2024. Ensuring everyone goes home
safely remains our commitment.
No injuries were recorded for the quarter at Henty.
Table 1: December 2023 group
safety performance (12-month moving average)
|
Plutonic
|
Henty
|
TRIFR
|
14.8
|
16.0
|
LTIFR
(per million hours worked)
|
-
|
12.8
|
OPERATIONS
Plutonic Gold Operations
The focus for the March quarter was continuing to embed the new
safety culture and ensuring the step change in performance across
key metrics was maintained.
Key production KPIs of mine development meters, production drill
meters, material movement and gold production continue to be in
line with previous quarterly production results. Ore tonnes mined
were in line with previous quarters despite poor mining
productivity in March due to equipment breakdowns.
Work continues to improve the team's understanding of mine
planning. While uncertainty remains, each passing quarter's
production being in line with the previous quarters gives
additional comfort.
Ore mined was 317kt vs 312kt on prior quarter. Gold recovered
was 21,252oz vs prior quarter of 21,904oz. AISC were
$2,346/oz vs prior quarter of
$2,713/oz.
Important for Plutonic's longer term success is identifying new
Resources in virgin areas near existing underground mine
infrastructure. During the quarter exploration drives were
established to begin the process of drilling out the Western Front
(see Figure 2). Catalyst is in discussions with its drill
contractor about sourcing a third underground drilling rig to
explore this area.
In March, Plutonic commenced depositing into the recently
constructed TSF cell 3. Cell 3 will provide tailings capacity until
the end of 2024. Construction work on the next lift at TSF
cell 2 is expected to commence in September
2024 and will provide a further 12 months capacity.
Approvals for the next 3 TSF lifts are in place.
Henty Gold Mine
Encouragingly, Henty has had five successful months of
production with the mine well positioned for a solid June quarter.
Operating metrics at Henty improved against the December
quarter across all key KPIs. Ore mined was 80kt vs 61kt on
prior quarter, a 33% improvement. Gold recovered was 6,832oz vs
prior quarter of 6,640oz. AISC were $2,712/oz vs prior quarter of $3,447/oz.
In recent months, Henty has been focussed on increasing its
production run rate of 300,000 tonnes per annum. This
quarter's production demonstrates both the mine and mill can
achieve this.
Construction of a TSF lift progressed during the quarter.
Completion was delayed due to weather. Planned completion is now by
the end of April.
EXPLORATION AND DEVELOPMENT
Plutonic Gold Belt Exploration
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. Over the last six months Catalyst
has been cleaning and collating +40 years of geological data from
multiple owners and data management systems – a painstaking and
time-consuming process. Over the coming months, Catalyst will
begin re-estimating Resources and undertaking optimisation
studies. Having near finalised the collation and cleaning of
historical geological data, Catalyst has been able to begin
re-estimating Resources and designing new exploration programs.
Updates will be provided as this work progresses.
Catalyst continues to progress its definitive feasibility study
(DFS) of the Trident deposit. Work is focused on lowering the
operating and execution risk of the project's development. With the
success experienced at the Plutonic underground mine, a more
balanced approach to Trident's development is now possible. This
more tempered approach reduces Catalyst's need to overextend in
developing Trident and thereby not tying all the company's future
to its success. Catalyst believes this approach ensures a more
efficient development of the belt.
Victorian Gold Exploration
Exploration in Victoria during
the quarter included soil sampling, and limited air core and
diamond drilling across the Tandarra Project. Exploration for
Catalyst in Victoria remains
limited while discussions with the government over the Exploration
Access Tunnel remain ongoing.
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, inclusive of 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 March 2024
quarter, the Company held available funds of $16.4 million. Catalyst repaid $9.1 million of a convertible note in
March 2024, representing the first of
two tranches inherited through the Vango Mining acquisition.
The second tranche is $3 million and
is due in June 2024.
During the quarter, the Company spent $69
million on mining production and development activities
across Plutonic and Henty. A total of $2 million was invested in growth exploration
activities across the Company's portfolio. $4.6m in equipment financing was drawn as part of
the continued investment in mobile equipment.
Hedging
At the end of the March quarter, the Company held the following
calls and forward sale contracts.
Table 2: Calls and forward sales
Quarter
|
Average Call Price
A$/oz
|
Ounces
|
Average Forward
Price A$/oz
|
Ounces
|
June 2024
|
3,000
|
3,500
|
3,169
|
19,815
|
Total
|
3,000
|
3,500
|
3,169
|
19,815
|
This report has been approved for release by the Board of
Directors of Catalyst Metals Limited.
Corporate summary
(at 31 March 2024)
|
ASX trading
code
|
CYL
|
Quoted shares
(CYL)
|
220,157,544
|
Unquoted
options
|
3,357,010
|
Unquoted performance
rights
|
3,500,000
|
Postal
address
|
PO Box
1784
|
|
West Perth, WA
6872
|
Telephone
|
(+61) 8 6324
0090
|
E-mail
|
Investors@catalystmetals.com.au
|
Website
|
www.catalystmetals.com.au
|
JORC 2012 Mineral Resources and Reserves
Catalyst confirms that it is not aware of any new information
or data that materially affects the information included in the
original market announcements and that all material assumptions and
technical parameters underpinning the estimates in the relevant
market announcements continue to apply and have not materially
changed. The Company confirms that the form and context in which
the Competent Persons findings are presented have not been
materially modified from the original market announcements.
Figures & Diagrams
Table 3: March 2024 quarter
performance summary – by production centre
3 MONTHS
ENDING 31 MAR 2024
|
Units
|
Plutonic
|
Henty
|
Total
|
Ore Mined
|
Tonnes
|
317,746
|
80,183
|
397,929
|
Milled Tonnes
|
Tonnes
|
340,960
|
71,267
|
412,227
|
Head Grade
|
g/t
Au
|
2.24
|
3.30
|
2.43
|
Recovery
|
%
|
86.4 %
|
90.3 %
|
87.3 %
|
Gold Recovered
|
oz
|
21,252
|
6,832
|
28,084
|
Gold Sold
|
oz
|
23,935
|
7,767
|
31,702
|
Average Price
|
A$/oz
|
3,0171
|
3,077
|
3,032
|
Total Stockpiles Contained Gold
|
oz
|
1,829
|
1,167
|
2,996
|
Gold in Circuit (GIC)
|
oz
|
1,987
|
1,121
|
3,108
|
Total Gold
Inventories
|
oz
|
3,816
|
2,288
|
6,104
|
|
|
|
|
|
Underground
Mining
|
A$/oz
|
1,281
|
1,252
|
1,274
|
Processing
|
A$/oz
|
332
|
234
|
308
|
General and
Administrative
|
A$/oz
|
281
|
256
|
275
|
Ore Stock &
GIC Movements
|
A$/oz
|
91
|
54
|
82
|
Cash Operating Cost
|
A$/oz
|
1,984
|
1,796
|
1,938
|
Royalties
|
A$/oz
|
79
|
176
|
102
|
Rehabilitation
|
A$/oz
|
12
|
4
|
10
|
Sustaining Capital
|
A$/oz
|
271
|
737
|
385
|
All-in Sustaining Cost
|
A$/oz
|
2,346
|
2,712
|
2,436
|
|
__________________________________
|
|
1
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.
|
View original content to download
multimedia:https://www.prnewswire.com/news-releases/march-2024-quarterly-report-302147674.html
SOURCE Catalyst Metals LTD.