The world is closer to a combined private and public debt of US$400 Trillion. We have simply a global debt/credit crisis. Full Stop! We need not look no further to the devaluation and loss of hegemony of the USD as the worlds reserve currency, for the reason behind the exponential increase in the POG in the years to come. Throw in the activities of the ever-increasing membership of the BRIC’s nations, Saudi oil deals with China (gold backed), Middle East and Ukraine, India/Pakistan, China/Taiwan conflicts.
From Stoc#he$d:
“A sojourn to the larger cap end of the market, where Catalyst Metals is leading a big move up for gold stocks after paying Sandfire Resources (ASX:SFR) $32.5m to acquire its Old Highway gold project.
It continues a garage sale for Sandfire, now a Spanish and Botswana focused copper mid-tier, of the assets around its brightly burning but short-lived DeGrussa mine and the broader Doolgunna province.
Old Highway is a more obvious bolt-on acquisition for the ~$1.4bn capped owner of the Plutonic gold mine, Catalyst.
Boasting a resource of 206,000oz at 3g/t, including a higher-grade portion of 140,000oz at 4.6g/t, Old Highway sits just 40km southwest of the Plutonic plant, and could deliver four years of feed at an average rate of 35,000ozpa and all-in sustaining costs of $1558/oz at $5000/oz gold prices.
There are additional benefits. CYL has access to Sandfire’s sealed aerodrome at DeGrussa, which lies 35km from Plutonic and could save CYL the $15m it would cost to seal its own airstrip.
“Catalyst consolidated the Plutonic Belt bringing together many new ore sources,” CYL MD James Champion de Crespigny added.
“The purchase of Old Highway brings another new ore source into the portfolio. Collectively, these ore sources, all of which are on mining leases, give Catalyst the opportunity to fill the processing plant in the near term.”
Plutonic produced 18,265oz at AISC of $2587/oz in the March quarter, with a lot of work to do to expand the project, fill its mill and fulfil CYL’s eventual dream of becoming a 200,000ozpa WA gold producer.”
Kori: Brilliant! Basically, CYL has from the sale of Henty (25,000oz pa) replaced it with the purchase of Sandfire’s Old Highway gold deposit (35,000oz pa) for about the same price but with an extremely more attractive AISC ($3283 vs $1588).
Combined with Pluronic’s current AISC of $2587/oz @ 18,265 oz for the March 2025 quarter and continued low cost mining at Plutonic East and Trident, September to December 2025 should see CYL’s KPI’s attract more retail and intuitional interest as we head into BASELIII and the refinancing of $7Trillion of US treasuries. We have a perfect future recalibration for CYL of a MC of $2B. All IMO.
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