The first six months of production from the Plutonic Gold Mine in Western Australia has seen Catalyst Metals Ltd return robust financial results for the first half of FY2024 including a 444% increase in EBITDA to $24.4 million.
As well as the increase in earnings before interest, tax, depreciation and amortisation (EBITDA) before extraordinary items, the company also recorded net profit before tax and extraordinary items of $9 million.
This compares to a loss of $2.4 million in H1 FY2023 while the EBITDA during the six months is much stronger than the H1 FY2023 result of $4.5 million.
Revenue increases
Catalyst said that the “robust results” were “primarily driven by the contribution of the Plutonic operations under Catalyst ownership” after the company acquired Vango Mining and Superior Gold in FY23 to consolidate the Plutonic Gold Belt.
Revenue increased to $133.8 million compared to the previous corresponding period's $33.5 million, driven by Plutonic's contribution of $106.4 million in H1 FY24 from 36,545 ounces sold at an average realised price of $2,906/ounce.
The half-year financial results represent the first six months as operator of Plutonic and continued production from the Henty Gold Mine in Tasmania.
Higher gold production
Strong FY2024 H1 operating results from the Plutonic and Henty operations have been driven by an average overall 30% increase in gold production, mine development and material movements.
These results included Catalyst’s Henty Gold Mine in Tasmania at which production increased by 8% during the half-year with a 2% lift in ore processed.
At Plutonic, ore processed increased by 13% during the half and gold production was 31% higher.
The results were achieved through combined gold production of 50,198 ounces and gold sales of 45,550 ounces at a realised gold price of $2,928/ounce.
Positive cash flow
Positive operating cash flow of $17.5 million was achieved in H1 FY24 compared to H1 FY23 of $8.6 million, which excluded Plutonic.
This enabled investment back into the business of $29 million in the form of exploration and evaluation, capital investment (both equipment and TSF) and mine development.
Key metrics by asset when compared against the prior six-month period.
Investment into business
Investment into operations included:
- Purchase of $9.1 million worth of mining equipment across Plutonic and Henty;
- Exploration, evaluation and development expenditure of $10.6 million; and
- Construction of two Tailing Storage Facilities (TSF) of $4.7 million.
A review of the exploration and evaluation assets acquired through the Vango transaction took place which resulted in a non-cash impairment and write-off of $13.1 million. The adjusted group EBITDA result, after adding this back, is $24.4 million.
The company’s statutory net loss after tax was $4.1 million, which includes non-cash items of $29.8 million and at December 31, 2023, there was cash, bullion and gold in circuit of $33.4 million, down from $33.9 million at June 30, 2023.
Debt obligations at December 31, 2023, were $43.1 million (June 30, 2023: $37.9 million).
At the end of the half-year, Catalyst held gold forward contracts of 11,550 ounces at an average gold price of $3,050/ounce for delivery between January and March 2024. There were gold call options of 11,000 ounces at an average call price of $2,980/ounce for delivery between January and May 2024.