Stryker shares tumble despite strong Q2 results and raised guidance
On Wednesday, Canaccord Genuity analysts elevated the rating of Catalyst Metals Ltd (CYL:AU) from Hold to Buy, while also increasing their price target on the stock from AUD6.20 to AUD6.95. The rating upgrade comes in the wake of Catalyst Metals’ announcement that it has entered into a definitive agreement to acquire the Old Highway Gold Project from Sandfire Resources (ASX:SFR) for AUD32.5 million in cash.
The acquisition will be financed through Catalyst Metals’ existing cash reserves, which stood at AUD98 million in cash and bullion as of March 31, 2025, and the proceeds from the recent sale of the Henty project. The Henty sale provided Catalyst Metals with AUD15 million in upfront cash, approximately AUD21 million in scrip, and AUD14 million in deferred consideration.
The completion of the Old Highway Gold Project acquisition is contingent upon receiving the necessary approvals from various stakeholders, including Ministerial consent and third-party agreements. Catalyst Metals and Sandfire Resources have also agreed to negotiate access to the sealed aerodrome near DeGrussa, which is situated about 35 kilometers from Catalyst’s Plutonic project. Securing access to this aerodrome could potentially save Catalyst Metals approximately AUD15 million, which would otherwise be spent on sealing its own unsealed runway at Plutonic.
Canaccord Genuity’s analyst Tim McCormack highlighted the strategic benefits of the acquisition for Catalyst Metals, noting the potential cost savings and the strengthening of the company’s asset portfolio. The positive outlook reflected in the upgraded rating and raised price target suggests confidence in Catalyst Metals’ growth trajectory following this key acquisition.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.