Yep your AISC $1750.00 is similar to Morgans $1800.00Catalyst...

Yep your AISC $1750.00 is similar to Morgans $1800.00


.90ps (under revision) In production: 100koz gold per year

1		Catalyst Metals (ASX:CYL) Market Cap @ A.06ps: A1.4M Valuation A.12ps & TP: A
2	Catalyst Metals (ASX:CYL) Market Cap @ A$1.06ps: A$241.4M Valuation A$1.12ps & TP: A$0.90ps (under revision) In production: 100koz gold per year
3	Low capital intensity re-start to add to Plutonic production. We interpret the recent CYL share price weakness – below A$0.50ps - to the expectation ofThe Market that an equity issue would likely be required to enable CYL to develop the Trident deposit and repay debt. The share price has since firmed and is now A$1.06ps. Catalyst has repaid over A$28M in debt since it consolidated the Plutonic gold belt in July 2023, and currently has cash of A$22M and liquidity of A$30M –reported 19 June 2024. Initially Catalyst focused on operational efficiency at the underground Plutonic mine. At Trident a resource of 4.2Mt @ 3.7g/t gold holds 508,000 ounces of gold, and with an underground development proposed, some expected a further round of capital raising. Catalyst now reports on re-stating the Plutonic East mine, with the statement: This considerable improved cash and debt position allows Catalyst to fund the exploration and development of the Plutonic Gold Belt. We will have to reduce the discount we have used to determine the Value and Target Price for CYL.The Market has started to unwind the discount as you can see in the chart below. The announcement today • Plutonic East is an old underground Barrick mine lying 2km from the considerably underutilised, and currently operational, 1.8Mtpa Plutonic processing plant • It has a historically reported NI 43-101 Resource of 522koz Au at 4.1 g/t Au1 • The mine’s decline and development workings are currently being dewatered at a faster rate than expected • Decline rehabilitation to commence in Q1 FY25; first ore expected in Q3 FY25 • No permits or approvals required for Plutonic East’s restart • Existing permits and infrastructure allow for a quicker and lower cost restart • Plutonic East and Trident are near term development projects lying 2km and 25km respectively from Plutonic’s processing plant - ongoing study work at both projects continue to reduce their development costs • Catalyst’s strengthening balance sheet combined with falling startup costs, better positions Catalyst to fund its development pipeline • With an underground mine, fixed costs are a large component of cash operating costs. Increasing gold production results in substantial C1 and All-in sustaining cost (AISC) reductions. Increasing production from the Plutonic process plant will deliver this. The development of Trident (with a resource grade of 3.7g/t gold) and Plutonic East would provide satellite feed which would be expected to contribute to further falls. • The AISC of A$2,346/oz is high, but is expected to decline significantly with increased Plutonic production. We are modelling A$1,800/oz. • At the current gold price of US$2,345 per ounce it’s A$3,546 per ounce. Even at this AISC, it’s a good margin.