WA gold miner Catalyst Metals locks in high price exposure amid falls from January’s record

Gold miner Catalyst Metals has locked in exposure to elevated gold prices for more than a year, pointing to recent volatility.

The company, which operates the Plutonic mine 195km northeast of Meekatharra in the Mid West region, announced on Thursday that it had entered into gold forward contracts of 30,000 ounces at a fixed price of $6075/oz ($US4212/oz).

Deliveries were spread evenly over 15 months, commencing in August 2026, and amounted to one quarter of production or 2 per cent of reserves, it said.

“This structure gives Catalyst flexibility to deliver early into contracts should prices fall quickly, while also retaining the majority of gold price exposure should prices rise over this period,” the miner said.

“Gold price volatility of the kind the industry has experienced recently can be destabilising. While gold prices can change daily, operations take time to change.

“To address this inherent risk, a short-term price protection regime is prudent to manage volatility and ensure greater operational stability.”

It comes as Morningstar equity analyst Jon Mills noted the gold price continued to fall, with exchange traded fund outflows accelerating, partially offset by solid central bank buying.

The gold price breached $US5500/oz in late January in a new record driven by Middle East conflict, representing a 100 per cent gain over the previous 12 months.

It was around $US4080/oz in early trading on Thursday, after falling for three days.

“We now assume gold averages around $US4400/oz from 2026 to 2028, from $US4900/oz, based on the futures curve,” Mr Mills said.

“However, our assumed mid-cycle price remains about $US2050/oz from 2030 based on our estimate of the long-run marginal cost of production.”

Bloomberg said gold was down by more than one-fifth since the Iran war started in late February, with a wave of profit-taking bringing a three-year bull run to an end and recently pushing the yellow metal below $US4000/oz.

“There’s little evidence yet, however, that investors are putting on large-scale short positions in anticipation of further declines,” the wire service wrote.