Key Highlights

  • Black Cat Syndicate reported total gold production of 19,153 ounces for the September 2026 quarter, compared with 20,830 ounces in the June quarter.
  • The company reaffirmed FY27 group production guidance of 80,000 to 90,000 ounces at an All-In Sustaining Cost of A$3,500 to A$3,900 an ounce.
  • Cash, bullion and listed investments totalled A$77.6 million, compared with A$105.3 million at June.

Black Cat Syndicate Limited (ASX:BC8) has reported total gold production of 19,153 ounces for the September 2026 quarter, down from 20,830 ounces in the June quarter, with heavy development spending at its Kal East operation during the period. The company reaffirmed FY27 group production guidance of 80,000 to 90,000 ounces at an all-in sustaining cost of A$3,500 to A$3,900 an ounce.

Black Cat's own production was 16,740 ounces, plus 2,414 ounces from third-party ore. Paulsens produced 10,417 ounces at a plant head grade of 3.1 grams a tonne and 92 per cent recovery. Kal East produced 8,736 ounces in total. The all-in sustaining cost for Black Cat's own production was A$3,735 an ounce. The company sold 18,000 ounces at an average unhedged price of A$6,065 an ounce, giving gold sales of A$108.8 million, compared with A$124.4 million in the June quarter.

Cash flow and balance

Operating Cash Flow before Capital was A$39.4 million, against A$77.2 million in June. The company attributes the fall to toll treatment of lower-margin material, fewer tonnes processed after mill bearing repairs at Lakewood, and lower grades. Total capital spending was A$61.5 million, including A$39.2 million of project and growth capital, A$12.5 million of sustaining capital and A$9.7 million of exploration. After capital and corporate costs, cash flow was negative A$27.7 million.

Cash on hand was A$53.5 million, bullion A$21.7 million and listed investments A$2.4 million, a total of A$77.6 million, compared with A$105.3 million at June. A A$30 million asset financing Facility with Commonwealth Bank of Australia is undrawn, and the company has no hedging. It is running a programme targeting A$30 million of cash improvements through cost savings and efficiencies.

Operations, drilling and resources

Black Cat Syndicate (ASX:BC8) said Paulsens is at steady state with notional Operating Cash Flow after capital of A$23.1 million. Kal East had negative notional cash flow of A$27.9 million, which included A$34.7 million of project capital. Drilling assays are pending at Paulsens and Coyote, while 56 reverse circulation holes at Trojan included 3 metres at 6.88 grams a tonne from 142 metres. FY27 drilling budgets are A$13 to 15 million each for Paulsens and Kal East and A$4 to 5 million for Coyote.

At 30 June 2026, the company reports mineral resources of 2.312 million ounces and ore reserves of 272,000 ounces. Paulsens resources and reserves fell by 86,000 ounces, from depletion and model updates.

The report also notes that Coyote is on care and maintenance with activity focused on exploration, that about 4,000 metres of diamond drilling at Coyote Central was completed after quarter-end across seven holes, and that an option to expand the Lakewood plant to 1.5 million tonnes a year remains open with long-lead items purchased. KPMG has been engaged for a Business systems and processes review.

Leadership, legal matters and next steps

James Bruce left as managing director on 5 September 2026, and Chris Stone became interim managing director on 8 September; the report is inconsistent on whether his role is interim. The company has started Supreme Court of Western Australia proceedings against Barclays Capital Asia Ltd, alleging breaches of the Market Integrity Rules, and says the case is at an early stage. Toll treating is expected to end in the December quarter, after which the company expects an increase in operating cash flow in the second half of FY27 at current gold prices. A life-of-mine plan review begins in the December quarter, with an update due in the June 2027 quarter, and an investor webcast is set for 27 October 2026.

Risks include grade variability, mill downtime, the first-half ramp-up at Kal East and gold price movements.