This exciting ASX 300 stock has 89% upside: Broker

This gold producer is set to explode.

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Investors often focus on ASX 200 shares for the perceived security compared to ASX small-cap stocks. 

But even extending a lens to just the ASX 300 can lead to more growth-focused opportunities.

That is exactly the case with ASX 300 stock Catalyst Metals Ltd (ASX: CYL). 

Gold nugget in a miner's hand amid black rocks.

Image source: Getty Images

Company overview 

Catalyst Metals is a mid-tier Australian gold producer and developer. It holds 100% ownership of two key projects.

The first is the Plutonic Gold Operation in Western Australia, an operating, multi-mine gold production centre targeting 100,000 to 110,000 ounces of gold in FY26.

The second is the Bendigo Gold Project in Victoria, an advanced exploration project.

Its share price has hovered between $4.40 and $9.80 over the past 12 months. Right now, it sits in between these yearly highs and lows. 

However the team at Bell Potter is bullish this ASX 300 stock could explode over the next 12 months.

The broker provided updated guidance on the company following its FY26 results. 

Solid results 

According to Bell Potter, this ASX 300 stock delivered a solid FY26 operational result. It reported revenue of A$632m, EBITDA of A$303m and NPAT of A$171m. 

While these earnings were below Bell Potter's expectations, the EBITDA shortfall was largely due to a A$49m legal settlement; excluding this, underlying EBITDA of A$352m was only about 5% below forecast.

The company also made good progress on growth projects and exploration. 

The Trident underground resource increased to 1.1Moz at 5.4g/t, while the Cinnamon discovery provides additional exploration upside. Cash and bullion increased by A$101m to A$331m, with no debt, and liquidity was subsequently strengthened to A$531m after the revolving credit facility was doubled to A$200m.

Overall, Bell Potter's message is that FY26 was a building year: operational performance was broadly on track, the balance sheet strengthened, and significant investment was made in future production growth. 

The key upcoming catalyst is the September FY27 guidance and 10-year plan, which should provide greater clarity on how quickly Catalyst can move toward its ~200kozpa production ambition.

89% upside for this ASX 300 stock

Based on this guidance, Bell Potter has retained its buy recommendation along with an updated price target of $12.80. 

From current levels, this indicates an upside potential of 89%. 

FY26 was a significant year for CYL, building operationally and financially YoY, achieving guidance. Our FY27 outlook remains unchanged (128koz for $2,833/oz AISC), subject to the September 2026 guidance and strategy release.

Motley Fool contributor Aaron Bell has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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