Black Cat Syndicate (ASX:BC8) has delivered an 81% increase in the operating cashflow of its Paulsens Gold Operation in Western Australia to $201 million at an all-in sustaining cost of $1,882 per ounce following a May 2024 Restart Study.
The restart study almost doubled the $110.6 million operating cashflow highlighted in the November 2023 Restart Study.
The results of the survey continue to show strong leverage to the gold price, with every $100-per-ounce change in the gold price impacting operating cashflow by $16 million, and highlight a reduction in plant refurbishment timing and cost from $19.5 million to $18.3 million.
According to Black Cat, the initial mine life of Paulsens remains unchanged at 4.2 years but remains open for growth. The study also returned a maximum cash drawdown reduction of 11% to $34.2 million.
A gold price of $3,500 per ounce was used in the May 2024 study. In November 2023, the company noted that results from the November study had potential to increase if the previous gold spot price of $3,100 per ounce or the four-year average forward price of $3,350 per ounce was applied.
The gold spot price has consistently sat above $3,000 per ounce since November 2023, reaching a new all-time record of just under $3,764 per ounce on 21 April 2024, according to ABC Bullion.
The study is the base case for secured debt funding and is a subset of an internal operating plan.
The internal operating plan also includes additional selective mining of developed veins to build a stockpile for immediate processing once a processing facility is commissioned.
Black Cat notes that the stockpile strategy, while excluded from the May 2024 study, is expected to begin once full funding is acquired.
Managing Director Gareth Solly says Paulsens is a “cash cow” and that the company is well progressed in obtaining the secured debt facility.
“Additionally, there is potential upside to the May 2024 study from the internal operating plan, which incorporates many high-grade veins that are outside the current resource,” Solly says.
“The internal operating plan includes additional selective mining of these developed veins to build a high-grade stockpile for immediate processing once the processing facility is commissioned, which has the potential to increase and accelerate initial and life of mine cashflow.”
Black Cat anticipates securing a debt facility of up to $30 million in June 2024. The company may include the Kal East Gold Project and Paulsens in the security package to optimise funding terms and to expedite approvals.
As such, the Preliminary Feasibility Study for Kal East is also being updated and will be released this month.
In the interim, Black Cat has implemented key site management positions, has engaged a refurbishment contractor, and is underway with plant refurbishment.
So far at Paulsens, Black Cat has fully dewatered and ventilated the underground mine, has secured all approvals for processing and mining, has approved a tailings storage facility, and has established additional infrastructure at the site.
Black Cat Syndicate is a multi-operation gold producer with three operations scattered around the Pilbara, Western Tanami, and Kalgoorlie regions of Western Australia.
Write to Adam Drought at Mining.com.au
Images: Black Cat Syndicate
