We are initiating coverage on Catalyst Metals (CYL) with a SPECULATIVE BUY rating and set a A$1.30 price target. Ramping up underground development rates at Plutonic should enable CYL to lift mine production beyond 100kozpa, and more importantly start to generate positive free cash flow. Incorporating regional ore feed from Trident could boost output at Plutonic beyond 130kozpa. Increasing the mining rate at Henty should also see cash generation improve over the next two years. CYL’s funding position is tight, and the company’s ability to maintain sufficient liquidity during the transition to positive cash generation this year presents the key risk to our base case.
To access the full report please log in under the Client Area at the bottom of this page.
Argonaut’s Client Area allows you to view delayed share prices, access Argonaut’s wealth of Research as well as create custom portfolios and set up company watch lists.
If you would like to access our research please contact us to create an account.