Brightstar Resources Gets ‘Buy’ Nod in New Analyst Report

Independent corporate advisory and equity capital markets firm Rawson Lewis has given Australian gold explorer and project developer Brightstar Resources (ASX:BTR) a ‘buy’ recommendation, with a net present valuation of AU$0.033 per share at AU$3,080 per ounce.

“If it delivers on production as expected, the discount rate should fall and share price rise to AU$0.056 in one to two years,” wrote Rawson analyst Mike Harowell in the report.

The report projected gold production and sales from Brightstar’s Selkirk deposit to generate AU$3 million in cash for the company by March 2024. Assuming Brightstar joint ventures the Menzies gold project with a mining contractor, the analyst report also projects the Menzies tolling business to generate between $30 million and $50 million in cash.

Brightstar has partnered with mining contractor BML Ventures to develop the Selkirk deposit. Rawson recommends the company engage BML and other similar mining contractors to help fund and develop the additional Menzies deposits.

“Brightstar is well placed to leverage competitive tension from these providers, so any buy-in to future projects is likely to be competitively priced.”

Selkirk Pit, Menzies (looking north-east)

Rawson Lewis’ report highlighted the following:

• With support from mining contractor BML, Brightstar’s Selkirk deposit’sgold production and sales will likely generate AU$3 million cash for Brightstar by March 2024.
• Assuming it is funded by profit share joint venture or a 50 percent sale to a contractor, the Menzies tolling business could generate between $30 million and- $50 million..
• Laverton plant restart to generate AU$100 million post tax – BTR is assumed to retain 100 percent and fund the $94 million capex with retained Menzies cash and debt.

Click here for the full report

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