ASX-listed Black Cat Syndicate has released the May 2024 restart study for the Paulsens gold mine, which details substantially higher returns than the November study on the back of a stronger gold price.
The latest study is based on a gold price of A$3 500/oz, compared with A$2 900/oz in November 2023, which bolstered operating cash flow by 81% to A$201-million.
Every A$100/oz increase in the gold price lifts operating cash flow by A$16-million.
“The May 2024 study demonstrates that Paulsens is a cash cow,” said MD Gareth Solly.
The study is a subset of an internal operating plan, which includes additional mining areas that do not meet requirements for public release. Black Cat is using the May 2024 study as a base case and the internal operating plan as an upside case.
Solly said the internal operating plan included additional selective mining of high-grade veins to build a high-grade stockpile for immediate processing once the processing facility is commissioned. This has the potential to increase and accelerate initial and life-of-mine cash flow.
“The high-grade stockpile strategy, while excluded from the May 2024 study will commence immediately upon full funding,” said Solly.