Catalyst Metals Ltd (ASX: CYL) shares are charging higher on Thursday morning.
At the time of writing, the ASX 200 gold share is up 5% to $8.05
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Why is this ASX 200 gold share rising?
Investors have been buying the gold miner's shares on Thursday after it delivered a standout December quarterly update, headlined by record production at its flagship Plutonic Gold Belt and a strengthened outlook for growth.
Before the market open, the ASX 200 gold share reported record quarterly gold production of 28,176 ounces from Plutonic under its ownership. This was achieved with three mines operating across the belt: Plutonic Main, Plutonic East and the Trident open pit.
Management notes that production during the quarter represented the highest quarterly output at Plutonic since 2014, which is a meaningful milestone for an asset that was close to insolvency just a few years ago.
For the quarter, gold was produced at an average all-in sustaining cost (AISC) of A$2,565 per ounce and A$2,776 per ounce sold. Management notes that it benefited from higher throughput and improved dilution of fixed costs.
Looking ahead, the company has retained its FY 2026 guidance of 100,000 ounces to 110,000 ounces of gold production at an AISC of A$2,200 to A$2,650 per ounce.
Growth pipeline
Beyond production, investors appear encouraged by progress across the ASX 200 gold share's growth pipeline.
It advised that development at the K2 underground mine continued during the quarter, with first ore expected before 30 June 2026. Importantly, the company also settled a long-running inherited legal dispute over the K2 deposit. This clears the way for accelerated mining and exploration activity at what will become Plutonic's fourth ore source.
Meanwhile, mining at the Trident open pit is tracking to plan and is expected to conclude in the first half of calendar year 2026, after which underground development will commence. The Old Highway project is also progressing through approvals and is expected to become Catalyst's fifth producing mine in time.
Collectively, these projects underpin Catalyst's strategy to lift annual production from around 100,000 ounces to approximately 200,000 ounces and extend Plutonic's mine life to around ten years.
Commenting on the company's performance, Catalyst's CEO, James Champion de Crespigny, said:
Record gold production for the quarter is pleasing. The operating risk for the business continues to fall as new mines come online. Before 30 June we will be producing from four mines on the belt – a terrific outcome from the team considering less than two and a half years ago Plutonic was near bankrupt, producing from only one mine! Exploration results at Cinnamon are encouraging as are further results expected this quarter from Trident, Old Highway and K2.
