Black Cat Syndicate has begun processing ore from its Fingals and Majestic mines through the Lakewood Mill and approved a $20 million expansion to boost capacity by 25%, aiming to lower costs and enhance cash flow.
- Lakewood Mill expansion approved to 1.5Mtpa at $20 million capital cost
- First 100% Black Cat ore processed from Fingals and Majestic mines
- Expansion funded entirely from strong operating cash flow
- Fingals and Majestic ramp-up to supply primary ore for next four years
- Expected reduction in unit processing costs and improved operating margins
Milestone Achievement at Lakewood
Black Cat Syndicate Limited has marked a significant operational milestone by successfully processing the first ore from its Fingals open pit and Majestic underground mines through the Lakewood Mill, part of its Kal East Gold Operation in Western Australia. This transition to 100% Black Cat-owned ore is a strategic pivot designed to enhance operating margins and future cash flow.
Managing Director James Bruce highlighted the achievement as a testament to the company’s disciplined execution and commitment to building long-life, high-quality assets. The initial 10,000 tonnes of ore processed delivered strong metallurgical and plant performance, reinforcing confidence in the operation’s potential.
Expansion to Boost Capacity and Cut Costs
In tandem with this operational progress, Black Cat’s Board has approved a $20 million expansion of the Lakewood Mill’s processing capacity from 1.2 million tonnes per annum (Mtpa) to 1.5 Mtpa, a 25% increase. This expansion is fully funded from the company’s robust operating cash flow, underscoring the financial health underpinning the project.
The expansion leverages existing infrastructure, including the commissioning of an existing Dunford mill, and is expected to be completed within 12 months. Regulatory approvals are already in place, and key long-lead items have been ordered, allowing works to commence promptly. Importantly, the plant will maintain its current throughput during the upgrade, ensuring continuous production.
With increased throughput, Black Cat anticipates a commensurate reduction in unit processing costs, which should enhance profitability. The first ore processed through the expanded mill is scheduled for the March 2027 quarter, positioning the company to capitalise on improved operational efficiencies soon.
Fingals and Majestic: The New Core Ore Sources
The ramp-up at Fingals and Majestic is progressing well, with stockpiles already reaching 114,000 tonnes ready for processing. These mines are expected to be the primary ore sources for Lakewood over the next four years, marking a strategic shift away from third-party ore processing. This move is anticipated to significantly improve operating margins and cash flow generation in upcoming quarters.
Black Cat’s integrated approach of owning and operating both the mines and processing facilities aligns with its strategy to produce more gold sooner, leveraging existing assets to maximise returns on invested capital.
Looking Ahead
As Black Cat advances its Lakewood expansion and Fingals and Majestic operations, the company is well positioned to strengthen its foothold in the Western Australian gold sector. The combination of increased processing capacity, improved ore quality, and cost efficiencies sets the stage for enhanced profitability and sustained growth.
Bottom Line?
Black Cat’s Lakewood expansion and Fingals-Majestic integration signal a new era of growth and margin improvement for Kal East.
Questions in the middle?
- How will the Lakewood expansion impact overall gold production volumes and timelines?
- What are the potential operational risks during the 12-month expansion period?
- To what extent will third-party ore processing continue under the new strategy?