On 27 December 2018, Catalyst Metals Limited (ASX: CYL) has signed a joint venture agreement with Navarre Minerals Limited (ASX: NML) on its Tandarra Gold Project with a royalty deed. Tandarra Gold Project lies in the region which is approximately 60kms northwest from Kirkland Lake Gold’s world-class Fosterville Gold Mine. From the Bendigo Goldfield, the project lies 40 km in the northward direction. This project is a gold discovery project under shallow cover in the Whitelaw gold belt.
Post entering into the joint venture, both the parties are going to meet in the late January 2019 regarding the finalization of the program and discuss the budget for the remainder before the close of FY2019 ending on 30 June 2019. The parties expect to begin the drilling program in the first quarter of CY2019.
As per the agreement, Navarre is going to transfer 51% of interest to Catalyst Metals Limited formally. The registration of the joint venture agreement will be “Catalyst is the Manager of the Joint Venture.”
The official listing date of the CYL is 26 July 2006. Since then, the performance of the company remains exceptionally well. However, the last three months performance of the company was negative. The performance of the company in ten years is 3566.67%. The previous one-year performance of the company was 37.50%.
For the FY2018 ending on 30 June 2018, there was an increase in the net loss this year. The net loss for the period was $4,241,647.
The balance sheet of the company looks healthy as the company has maintained a strong net asset base of $4,818,624 and a debt to equity ratio of 0.15. It highlights that the company can meet its long-term obligations. Further, low debt to equity ratio indicates that the company tries to utilize its resources instead of seeking support from creditors. Also, the company owns a total current asset of $5,544,373 and a total current liability of $735,951 which indicates that the company’s position is such that it can easily take care of the short-term obligations and meet the working capital requirements. However, FY2018 reports an increase in accumulated losses which could have a negative influence on the investors and the shareholders of the company. It also indicates that the operating performance of the company was not up to the mark. The total shareholder’s equity is $4,818,624.
The net cash and cash equivalent by the end of FY2018 were $4,954,122. The share traded flat on ASX with the last traded price of A$1.65 with the market capitalization of A$115.85 million.