Catalyst Metals reported stable gold production at Plutonic despite rising costs, unveiled a promising new ore source at Cinnamon, and expanded its landholdings significantly in the Bryah Basin.
- March quarter gold production of 26,127oz at Plutonic
- New high-grade zone discovered beneath Cinnamon Resource
- Bryah Basin land package acquisition creates near-contiguous 190km tenement
- AISC revised higher to A$2,750–2,950/oz for FY26
- Strong operating cashflow of A$103m supports growth and exploration
Production Steadies Amid Rising Costs
Catalyst Metals (ASX:CYL) delivered 26,127 ounces of gold from its Plutonic Gold Belt during the March 2026 quarter, a slight dip from the prior quarter’s 28,176oz but within expectations. The all-in sustaining cost (AISC) climbed to A$2,901 per ounce produced, surpassing the company’s previous guidance range, now forecast between A$2,750 and A$2,950 per ounce sold. Catalyst attributes the cost pressures to processing plant downtime, reduced material movement, and inflationary diesel prices.
The company continues to operate three mines feeding the central processing plant: Plutonic Main, Plutonic East, and the Trident open pit, with mining at Trident expected to wrap up imminently before transitioning underground. Development at K2, the fourth mine, is on track to ramp up in the June quarter, supported by comprehensive grade control drilling that reduces operational risk for the first 12 to 15 months of production.
New High-Grade Discovery at Cinnamon Adds Sixth Ore Source Potential
Exploration beneath the existing Cinnamon Resource has unveiled a high-grade gold zone extending approximately 400 meters. This discovery, which remains open along strike and at depth, could provide Catalyst with a sixth ore source, further diversifying production and reducing reliance on existing mines. Intercepts include significant widths and grades such as 33 meters at 7.4g/t and 22 meters at 14.3g/t gold, highlighting the zone’s potential.
This breakthrough aligns with Catalyst’s strategy to grow its reserve base to around 2 million ounces to support an increased production profile from 100,000 to 200,000 ounces annually over a decade. The company’s multi-mine approach, including Trident, K2, Old Highway, and now potentially Cinnamon, aims to fill the underutilised 2Mtpa processing plant and stabilise long-term output. The recent drilling success at Cinnamon builds on earlier results that have steadily expanded the Plutonic resource base new high-grade zone at Cinnamon.
Strategic Expansion in Bryah Basin Enhances Exploration Footprint
In a significant move to broaden its exploration portfolio, Catalyst acquired approximately 1,000 square kilometers of tenements in the Bryah Basin, adjacent to the Plutonic Gold Belt. This acquisition creates an almost contiguous 190-kilometer land package surrounding the Plutonic processing hub, positioning Catalyst to leverage synergies across the region. The Bryah Basin is noted for its gold and base metal potential, fragmented historical ownership, and underexplored targets, offering a compelling longer-term growth avenue.
The acquisition complements Catalyst’s existing assets and infrastructure, potentially enabling cost-effective exploration and development. This expansion follows the company’s recent progress advancing the Trident underground mine, where grade control drilling has confirmed consistent high-grade mineralisation and open pit mining is nearing completion Trident underground mine progress.
Financial Position Supports Growth and Infrastructure Upgrades
Catalyst’s operating cashflow after sustaining capital and corporate costs reached A$103 million for the quarter. The company invested A$7 million in non-discretionary capital upgrades, including refurbishments to the gas-fired power plant, processing plant, and camp facilities; projects largely completed during the quarter to de-risk future production. Discretionary growth capital of A$18 million was directed toward mine development at Trident, K2, and Old Highway, alongside A$19 million dedicated to exploration activities.
Cash and bullion balances increased by A$39 million quarter-on-quarter to A$277 million, supported by a strong realised gold price averaging A$7,014 per ounce. Catalyst also maintains an undrawn A$100 million corporate revolving credit facility, underpinning its capacity to fund ongoing development and exploration initiatives.
Old Highway and Victorian Projects Progressing
The Old Highway gold project, situated 40 kilometers south of Plutonic, is advancing through permitting stages with development anticipated to commence in calendar year 2027. The project features a resource of 206,000 ounces at 3.0g/t gold, including a higher-grade underground component. Exploration drilling has returned encouraging results, including 26 meters at 5.9g/t gold extending mineralisation 300 meters below the current resource.
Meanwhile, Catalyst’s Victorian gold assets, including the Four Eagles Project near the historic Bendigo Goldfields, continue to mature. Recent approvals for exploration tunnels and consolidation of ownership in the Bendigo Belt signal progress toward unlocking value in these high-grade assets.
Bottom Line?
Catalyst Metals is consolidating its position with strategic land acquisitions and a promising new ore discovery, but rising costs and execution of multiple mine developments will test its ability to double production sustainably.
Questions in the middle?
- How will rising AISC impact Catalyst’s margin if gold prices fluctuate?
- Can the new Cinnamon discovery materially extend mine life or boost production rates?
- What exploration potential does the Bryah Basin package realistically offer over the next 3–5 years?