Catalyst Metals Ltd (ASX: CYL) shares have absolutely smashed the market over the past 12 months.
During this time, the ASX 200 gold stock has risen by a sizeable 80%.
Incredibly, despite this outperformance, Bell Potter believes that even greater returns could be on the cards for investors over the next 12 months.
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What is the broker saying?
Bell Potter notes that the gold miner has announced an agreement with Star Minerals Ltd (ASX: SMS) and Albright Metals Ltd (ASX: ABR) to acquire gold tenements in the Bryah Basin. It said:
CYL announced it has entered into binding agreements with Star Minerals Ltd (ASX:SMS; not rated) and Albright Metals Ltd (ASX:ABR; not rated) to acquire ~1,100 km² of Bryah Basin tenements, expanding its position to >2,280 km² and creating an ~190 km contiguous land package adjoining the Plutonic Belt.
The Bryah Basin tenure lies on the SW edge of CYL's existing Plutonic operations and is directly connected to the Plutonic processing plant via a 70 km haul road. As part of the transaction with SMS, CYL has agreed to toll treat up to 250kt of SMS ore over two years. CYL will pay a total $4.55m in cash/scrip; funded through existing cash ($238m at 31 December 2025). CYL has also agreed to a A$1m placement in SMS shares.
The broker is a fan of the deal and believes it will strengthen the ASX 200 gold stock's ability to create a sustained 10-year, ~200,000 ounces per annum production base. It adds:
The Bryah Basin acquisitions meaningfully advance CYL's long‑term strategy to build a scaled, multi‑mine gold operation anchored around Plutonic. The consolidation of the historically fragmented Bryah Basin tenure, combined with immediate logistical, operational and processing synergies with near‑term toll‑treating income, strengthens CYL's ability to create a sustained 10yr/ ~200 koz pa production base.
The expanded footprint enhances exploration optionality in one of WA's most prospective but under‑explored districts that hosts major deposits, reinforcing CYL's position as the dominant landholder and regional consolidator in the Bryah–Plutonic corridor.
ASX 200 gold stock tipped to rocket
According to the note, the broker has retained its buy rating on Catalyst Metals' shares with an improved price target of $14.60 (from $13.50).
Based on its current share price of $7.61, this implies potential upside of 92% for investors over the next 12 months.
Commenting on its buy recommendation, Bell Potter concludes:
CYL continues to build the Plutonic portfolio with the Bryah tenure, providing competitive advantage through the exploration upside and potential for long-term resource optionality. After factoring in the 250ktpa toll treatment agreement, lower processing unit costs, transactions costs and gold price adjustments, we are raising our Target Price to $14.60 and maintain our Buy recommendation.
