Black Cat Syndicate (ASX:BC8) is implementing a strategy to maintain a minimum of $20 million in gold bullion storage. This initiative aims to safeguard the company’s assets against the devaluation of cash holdings, according to Managing Director Gareth Solly. As of May, Black Cat retained $24 million (4,500 ounces) in bullion.
The company views gold as a high-quality, liquid asset, free from credit risk and universally accepted, with a proven history of maintaining its purchasing power. Black Cat also holds 2.5 million ounces of gold in its resource base. While cash will still be used for growth and working capital, the gold bullion will be treated as trading stock, valued at the lower of cost and net realisable value for accounting and tax purposes. Unrealised profits on the bullion will be recognized through regular revaluations.
Black Cat believes investors seeking leverage to gold, both in bullion and resources, can now consider an investment in the unhedged Black Cat. The company will regularly review the strategy’s alignment with cash needs, risk profile, and investor expectations. Black Cat covers the full spectrum of the gold business with visible gold in core, gold in stockpiles, gold in circuit and gold bullion.
