Why is the Black Cat Syndicate (ASX:BC8) share price is moving higher today?

The Black Cat Syndicate share price is gaining today, up 2% in morning trade. We take a look at the ASX gold miner’s latest announcement.
The post Why is the Black Cat Syndicate (ASX:BC8) share price is moving higher today? appeared first on The Motley Fool Australia. –

upward trending arrow made from fireworks display

The Black Cat Syndicate Ltd (ASX: BC8) share price is moving higher in early morning trade. At the time of writing, the Black Cat share price is up 1.5% to 68 cents.

Below, we take a look at the ASX gold miner’s latest acquisition announcement.

What acquisition did Black Cat report?

The Black Cat share price is moving higher after today. This comes after the company reported it has exercised its option to acquire a 1.5 million tonnes per annum (mtpa) milling facility.

The facility, consisting of 2 mills, will be used at its Kal East Gold Project, near Kalgoorlie, Western Australia. Additionally, the company reports that with 756 square kilometres of tenements, Kal East contains a combined JORC 2012 Mineral Resource of 14.3Mt @ 2.2 g/t Au for 1,025,000 ounces of gold.

Black Cat will acquire the milling facility, inclusive of associated equipment, for a total of $1.24 million. It has already paid $100,000.

The company said it will build the facility in 2021, some 50 kilometres east of Kalgoorlie. Black Cat will initially install 1 of the 2 mills it has acquired. Furthermore, the second mill will be on standby for future milling capacity expansion.

Management commentary

Commenting on the milling facility acquisition, Black Cat’s managing director, Gareth Solly said:

The milling facility is ideal for our planned processing facility and includes sufficient grinding capacity for potential future expansion. Due diligence by a team of experts has confirmed that the facility was operated for less than five years, has been well maintained and is in excellent condition. We are currently estimating the impact this milling facility has on our construction schedule and construction cost estimates for both the initial facility as well as the potential expansion case.

Black Cat share price snapshot

Over the past 12 months, the Black Cat Share price has been a star performer, up 166%. Comparatively, that’s a gain of 40% on the All Ordinaries Index (ASX: XAO).

The gold price is also up over the past full year, gaining 7.3% to the current US$1,734 (AU$2,266) per ounce. Year-to-date the gold price has dropped 8.7%. This is reflected in Black Cat’s shares. So far in 2021, the Black Cat share price is down 7.6%.

Where to invest $1,000 right now

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes are the five best ASX stocks for investors to buy right now. These stocks are trading at dirt-cheap prices and Scott thinks they are great buys right now.

See The 5 Stocks

*Returns as of February 15th 2021

More reading

Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The post Why is the Black Cat Syndicate (ASX:BC8) share price is moving higher today? appeared first on The Motley Fool Australia.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;

To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.

An active and funded account with a positive trading balance is required to continue to have access to the tools;

Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;

Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!