Brightstar’s Updated Goldfields Study Targets $1bn Free Cash Flow and 74% IRR

Brightstar Resources Limited ( (AU:BTR) ) has issued an announcement.

Brightstar Resources has delivered an updated definitive feasibility study for its Goldfields Project in Western Australia, shifting from a Menzies toll-milling model to a consolidated processing strategy at Laverton. The revised plan right-sizes the processing plant to 1.5Mtpa, extendable to 2.5Mtpa, and is underpinned by upgraded mineral resources and increased ore reserves, supporting initial mine production of 9.4Mt at 1.7g/t for 457,000 ounces over about six years at more than 75,000 ounces per year. At a base case gold price of A$6,000/oz, the study outlines project revenue of A$2.7 billion, pre-tax free cash flow of A$1.0 billion, a pre-tax NPV8 of A$606 million and a 74% IRR, with payback expected 17 months after commissioning and peak pre-production funding of A$188 million. Brightstar is advancing a funding package, including targeted debt of up to A$150 million, and plans to use cash flows from the Goldfields Hub to materially de-risk and help fund future development of the Sandstone Gold Project, reinforcing its ambition to become a meaningful gold producer in Western Australia.

The most recent analyst rating on (AU:BTR) stock is a Hold with a A$0.60 price target. To see the full list of analyst forecasts on Brightstar Resources Limited stock, see the AU:BTR Stock Forecast page.

More about Brightstar Resources Limited

Brightstar Resources Limited is an Australian gold developer focused on advancing its 100%-owned Goldfields Project in Western Australia, including the Menzies and Laverton assets, with a strategy to build a standalone mid-tier producer in a Tier-1 mining jurisdiction and ultimately support development of its larger Sandstone Gold Project.

Average Trading Volume: 5,500,531

Technical Sentiment Signal: Buy

Current Market Cap: A$427M

See more data about BTR stock on TipRanks’ Stock Analysis page.