Catalyst Metals Ltd (ASX: CYL) shares are having a tough time on Wednesday.
In morning trade, the ASX 200 gold stock crashed 10.5% to $6.80.
Its shares have bounced back a touch since then but remain down 5% at the time of writing.
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Why is this ASX 200 gold stock crashing?
Investors have been selling down this gold miner's shares today after the release of its quarterly production update overshadowed yet another strong rise in the gold price.
In respect to the latter, overnight the spot gold price leapt beyond US$4,000 an ounce for the first time in history, boosting the profit margins of Aussie gold miners like Catalyst Metals and Northern Star Resources Ltd (ASX: NST) even further.
However, this ASX 200 gold stock won't be able to take full advantage of this after its production fell short of expectations during the first quarter.
According to the release, quarterly gold production was 2,000 ounces lower than planned at 17,600 ounces. Management notes that this was due to lower availability of the crushing circuit. It stated:
Gold production for the quarter was impacted by the availability of the crushing circuit with higher throughput rates being tested, installation of new mill liners and changeover connection to the new power facility.
In addition, due to processing down time, ROM stockpiles at the quarter's end amounted to 50,000 tonnes of ore.
The good news is that despite the production shortfall in the first quarter, management has reaffirmed its FY 2026 guidance. It continues to forecast production of 100,000 ounces to 110,000 ounces of gold at an all-in sustaining cost (AISC) of A$2,200 per ounce to A$2,650 per ounce.
Exploration ramps up
Despite the booming gold price, the ASX 200 gold stock's cash and bullion balance fell slightly during the quarter to A$227 million.
Management notes that this $3 million decrease was driven by increasing exploration and development project spend and its lower gold production.
Catalyst remains debt free but holds an undrawn A$100m corporate revolving facility, which gives it liquidity of A$327 million.
Speaking of its increasing exploration and development project spend, the company notes that the development of the Trident open pit, K2, and Plutonic East mines are all progressing in line with expectations.
Furthermore, exploration activities have continued to ramp up during the quarter with three additional surface rigs mobilised. This takes the total surface rig count across the Plutonic Belt to 14 and a further seven rigs underground. Four of these are operational grade control rigs. It said:
As has been foreshadowed for some time, project development and exploration expenditure is increasing across the belt. By way of example, the number of surface exploration rigs continues to increase and the Trident open pit commenced night shift, increasing overall material movement.
Despite today's weakness, this ASX 200 gold stock is up approximately 160% over the past 12 months.
