Kaiser Reef Ltd has completed its acquisition of the Henty Gold Mine, instantly boosting its annual gold production to over 30,000 ounces and setting a clear path to 50,000 ounces. The deal also brings significant infrastructure, a skilled workforce, and strategic partnerships that could reshape the company’s growth trajectory.
- Acquisition of Henty Gold Mine establishes Kaiser as a +30kozpa gold producer
- Historical production of 1.4Moz at high grade with 154koz JORC Ore Reserves
- Fully permitted 300ktpa CIL plant and infrastructure with 150+ skilled employees
- Catalyst Metals becomes a 19.99% shareholder, enabling joint venture opportunities
- Funding secured via $30 million placement and $10 million Auramet facility
A Transformational Acquisition
Kaiser Reef Ltd (ASX: KAU) has officially completed the acquisition of the Henty Gold Mine in Tasmania from Catalyst Metals Limited, marking a significant milestone in its evolution into a multi-asset Australian gold producer. This strategic move instantly elevates Kaiser’s annual production to over 30,000 ounces of gold, with a clear growth pathway targeting 50,000 ounces per annum.
The Henty Gold Mine is a well-established operation with a rich history, having produced approximately 1.4 million ounces of gold at an impressive grade of 8.9 grams per tonne. The mine’s current JORC Ore Reserves stand at 1.2 million tonnes grading 4.0 grams per tonne, equating to 154,000 ounces of gold, underpinning a robust five-year mine plan.
Infrastructure and Workforce Strengthen Position
Integral to the acquisition is a fully permitted carbon-in-leach (CIL) processing plant capable of treating 300,000 tonnes per annum, alongside extensive surface and underground infrastructure. Kaiser inherits a skilled workforce of over 150 employees, ensuring operational continuity and local expertise. The mine benefits from access to hydro-generated grid power and refreshed tailings storage capacity, positioning it well for sustainable production.
Jonathan Downes, Managing Director of Kaiser, expressed enthusiasm about the acquisition, highlighting the opportunity to build on Catalyst’s successful operational improvements and the potential for near-mine exploration to extend the mine’s life. The collaboration with Catalyst, now a significant 19.99% shareholder in Kaiser, also opens doors for joint ventures, including potential development of the Maldon processing plant.
Financial Backing and Market Implications
The acquisition was supported by a $30 million placement and a $10 million funding facility secured with Auramet International Inc, comprising a senior secured gold loan and a gold prepayment facility. This strong financial position provides Kaiser with enhanced flexibility to pursue further exploration, operational improvements, debt reduction, or shareholder returns.
With the current gold price environment at record highs, Kaiser is well placed to generate strong margins from the Henty operation, which has historically maintained a stable cost base. The acquisition price of approximately A$1,200 per production ounce compares favorably with peers, suggesting potential for a re-rating of Kaiser’s market valuation.
Looking Ahead
As Kaiser integrates the Henty Gold Mine into its portfolio, the company’s focus will be on operational optimisation and exploration success to extend mine life and increase production. The strategic partnership with Catalyst and the addition of a skilled local workforce provide a solid foundation for growth and value creation.
Bottom Line?
Kaiser’s acquisition of Henty sets the stage for a new era of growth, but execution and exploration will be key to unlocking its full potential.
Questions in the middle?
- How quickly can Kaiser ramp up production towards the 50,000-ounce target?
- What near-mine exploration results will emerge to extend Henty’s mine life?
- How will the joint venture with Catalyst at Maldon influence future growth?