Catalyst Metals shares lower as quarterly output misses expectations
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More news: Catalyst Metals shares slumped in early trade after the gold miner reported a lower-than-expected gold haul in the three months to September.
Shares were down 3.8% to $7.31 at 11:10am AEDT. The stock has surged 162% over the last 12 months.
Catalyst Metals gold production lower expected in Sept quarter
The news: Catalyst Metals has produced 2,000 ounces of gold less than planned due to reduced availability of a processing facility amid maintenance and testing.
The numbers: Gold production for the September quarter came in at 17,600 ounces for the period.
However, Catalyst said it is still on track to meet full-year production guidance of 100,000 and 110,000 ounces of gold as well as all-in sustaining-cost guidance in the range $2,200 and $2,650 per ounce.
At the end of the quarter, the company had $227 million in cash and bullion, down from $230 million at the end of the June quarter due to “increasing exploration and development project spend” and lower gold production.
The context: During the quarter, the crushing circuit was impacted by higher throughput testing as well as “installation of new mill liners and changeover connection to the new power facility”.
The company also increased exploration activity during the quarter. There additional surface mining rigs were installed at the Plutonic Belt, taking the total to 14. There were also an additional seven underground rigs of which four are operational grade control rigs.
The source: ASX
