Brightstar logo

Analyst Report Outlines Brightstar’s ‘Cheapest, Quickest’ Path to Cash Generation

Description:

Corporate finance advisor Evolution Capital affirms Brightstar Resources’ (ASX:BTR) potential to be one of the cheapest and quickest pathways to cash generation.


Evolution Capital has given BTR a valuation of AU$95 million or $0.032 per share, assuming a flat gold price of AU$3,000 per ounce.

“The risks to our valuation are on the upside considering renewed investor interest in gold, further exploration success, which could be easily and quickly monetises … and a potential lithium pegmatite discovery,” the report noted.

BTR’s scoping study combining the development of the Menzies (Lady Shenton + Yunndaga deposits) and Laverton assets (Cork Tree Well + Alpha deposits) “demonstrates to the market some enviable characteristics” entailed with initial development capital AU$22 million, low technical risks, and a high profitability index, the report said.

CTWMET004 diamond holes drilled at Cork Tree Well showing visible gold with $2 coin (20.5mm diameter) for scale


Evolution Capital expects an intense 2024 newsflow, including cash flow from the Selkirk gold production, ongoing results from greenfield exploration, as well as infill and extensional drilling, resource updates, completion of the pre-feasibility study, and the potential discovery of lithium-bearing pegmatites at the Menzies project.

Highlights from the report:

  • The $5 million placement announced by BTR in November 2023 and the expected cash flow from the Selkirk 50/50 profit sharing JV in 2024 will accelerate exploration work and the completion of pre-feasibility study for the restart of the Menzies and Laverton gold projects. Production at the Selkirk JV is expected to generate cash flow for BTR by the first quarter of 2024. Evolution Capital estimates BTR’s profit share at $4 million.
  • The scoping study for the development of the Menzies and Laverton assets demonstrates some enviable characteristics, which Evolution Capital summarized as: low initial development capital of $22 million, low technical risks, and a four-times-higher profitability index.
  • Using a gold price of AU$3,000 per ounce, and a 25 percent risk discount, the analyst firm gave the Laverton and Menzies Projects a valuation of AU$93 million or $0.031 per share.


For the full analyst report, click here.

This content is intended only for persons who reside or access the website in jurisdictions with securities and other applicable laws which permit the distribution and consumption of this content and whose local law recognizes the scope and effect of this Disclaimer, its limitation of liability, and the legal effect of its exclusive jurisdiction and governing law provisions [link to Governing Law section of the Disclaimer page].

Any investment information contained on this website, including third party research reports, are provided strictly for informational purposes, are general in nature and not tailored for the specific needs of any person, and are not a solicitation or recommendation to purchase or sell a security or intended to provide investment advice. Readers are cautioned to seek the advice of a registered investment advisor regarding the appropriateness of investing in any securities or investment strategies mentioned on this website.

BTR:AU
Brightstar Resources

Brightstar Resources Investor Kit

  • Corporate info
  • Insights
  • Growth strategies
  • Upcoming projects

GET YOUR FREE INVESTOR KIT

The Conversation (0)
Brightstar Resources

Brightstar Resources


Keep reading...Show less

Emerging gold producer and district-scale resource developer in Western Australia

David Erfle, gold bars.

David Erfle: Silver Staging "Powerful" Breakout; Plus Gold Stocks and Copper Squeeze

David Erfle, editor and founder of Junior Miner Junky, shares his short-term outlook for gold, saying it could see a healthy test of US$3,200 per ounce — or even US$2,950 to US$3,000.

Erfle also shares his thoughts on what's coming for silver and copper prices.

Keep reading...Show less
Gold nugget displayed on an antique balance scale with a dark background.

Meeka Metals Reports First Gold Pour at Murchison Project

Meeka Metals (ASX:MEK) has poured the first gold at its flagship Murchison project in Western Australia.

The pour happened on Tuesday (July 1), and in a Wednesday (July 2) press release, the company said the project’s production is in line with schedule, happening within 12 months of breaking ground.

Murchison sits near several multimillion-ounce gold mines and hosts a large, high-grade resource of 1.2 million ounces at 3 grams per tonne (g/t) gold on granted mining leases.

Keep reading...Show less
Sun Summit Minerals (TSXV:SMN)

Sun Summit Minerals

Keep reading...Show less
Aurum Resources (ASX:AUE)

Aurum Resources


Keep reading...Show less
Brightstar Resources

Brightstar Resources Investor Kit

  • Corporate info
  • Insights
  • Growth strategies
  • Upcoming projects

GET YOUR FREE INVESTOR KIT

Latest Press Releases

Related News

×