Two mining stocks are on the rise becoming growing companies to invest in because of entirely different reasons.
Polymetals Resources Limited (ASX: POL)
Polymetals Resources Limited (ASX: POL) has made significant strides in its Endeavor Mine redevelopment project. The company has secured a US$20 million (approx. A$30 million) Pre-payment Loan Facility with Ocean Partners, which will fund the planned capital expenditure required to restart the Endeavor silver zinc lead mine. This funding is crucial for the project’s next phase, with first cashflow expected in H1 2025. As part of the facility, Polymetals has issued 2.5 million options at $1.00 per share, exercisable within 24 months. The company also reported solid progress in its financial and operational plans, including the completion of placements totalling $9.3 million and the approval of its revised 10-year mine plan, which highlights an impressive pretax net present value (NPV) of $414 million and internal rate of return (IRR) of 345%.
During the September 2024 quarter, Polymetals finalized its acquisition of the Endeavor Mine from CBH Resources, marking a significant milestone in the company’s growth strategy. This acquisition includes the transfer of shares in the subsidiary companies, Endeavor Operations Pty Ltd and Cobar Operations Pty Ltd, to Polymetals’ wholly-owned subsidiary, Cobar Metals Pty Ltd. With this acquisition, the company ramped up refurbishment works and the recruitment of key management personnel, setting the stage for the first concentrate and sales revenue during the first half of 2025. The revised mine plan has shown significant upgrades in Ore Reserves, production rates, and financial metrics, including a pre-tax cash flow of $609 million over the life of the project and a capital cost of $28 million for the mine restart, with a payback period of just 14 months.
Polymetals is one of the potential growth companies, having also made important advancements in near-mine exploration. At the Carpark Prospect, located south of the Endeavor Main Lode, the company has been drilling to identify potential buried sulphide mineralization. While recent drilling did not yield ore-grade intercepts, the data continues to suggest a promising sulphide occurrence at depth. Additionally, geotechnical drilling at the Upper North Lode (UNL) has been completed, with results indicating favorable conditions for further exploration. The company plans metallurgical testwork on the mineralized core obtained from this drilling to optimize the processing of the ore.
Black Cat Syndicate Limited (ASX: BC8)
Black Cat Syndicate Limited is making strong progress in its strategy to accelerate and expand gold production from its 100%-owned Kal East Gold Operation. A key focus is on increasing processing capacity from 0.8Mtpa to 1.2–1.5Mtpa, leveraging the company’s owned mills. Engineering partner MACA Interquip Mintrex has been engaged to complete the processing facility’s expansion study, which will reoptimize mining plans and align them with current gold price levels (previously based on A$2,500/oz). Refurbishment works on the Kal East processing facility are on track and within budget, with commissioning targeted for December 2024. This initiative is integral to Black Cat’s strategy to maximize value from its robust asset base while ensuring sufficient capacity to accommodate high-grade material from ongoing mining activities.
Underground selective mining commenced in July 2024, targeting high-grade stockpiles. One of the best growth stocks, its progress has been promising, with 440m of mineralized development completed by October, exceeding expectations. Mobilization of load and haul equipment has enabled the delivery of high-grade material to surface, while additional miners were deployed in October to support this strategy. The company is now exploring the extension of selective mining, which could further optimize feed and reduce unused processing capacity over the mine’s life. At Myhree, mining activities are advancing ahead of schedule. Operations began in June 2024, with the first ore mined in late July. The program achieved a key milestone with the pouring of first gold doré from Myhree, signaling operational readiness and momentum. Financially, Black Cat remains well-positioned, ending the quarter with ~$18 million in cash and zero debt. The second tranche of its June 2024 capital raise was approved in July, providing additional liquidity to support growth initiatives.
Black Cat’s accelerated production strategy, combined with a strong financial position, positions the company to create significant shareholder value. With high-grade mining success, facility expansion underway, and first gold poured, Black Cat is progressing towards its goal of maximizing Kal East’s potential in a favourable gold price environment.
Source: Company’s Report
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