Adelong Gold [ASX:ADG]
Metals & Mining
Exploration Momentum & First Gold Pour Drive Re-Rating Potential
We update Adelong Gold (ASX: ADG) with a revised Target Share Price of $0.030, this represents a total upside potential of 168.5%, reflecting a significant increase from the current share price of $0.011 and a 5.5% increase from the previous Target Share Price of $0.028 from our re-initiation report from May this year. This re-rating potential is underpinned by ADG’s string of pivotal milestones in recent months, positioning the company for a significant re-rating. The successful first gold pour at the Challenger Gold Mine (49% JV interest) transitions ADG into near-term producer status. Meanwhile, the maiden drilling program at the Apollo Gold Project in Victoria delivered strong highgrade intercepts and confirmed continuity of mineralisation in the Dig Fault Zone, validating the company’s exploration model. At the same time, ADG has launched drilling at the high-grade gold-antimony Lauriston Gold Project, securing access to both gold and critical minerals upside.
Exploration Momentum Builds Across Apollo and Lauriston Projects
ADG has maintained strong exploration momentum, highlighted by robust assay results from Apollo, including 10.9m @ 3.26 g/t Au and 27.0m @ 1.69 g/t Au, confirming extensive gold mineralisation within the Dig Fault Zone. The company has also commenced regional soil sampling across an 11km strike along the Strathbogie Granite contact to identify new mineralised structures. In parallel, diamond drilling has begun at the Lauriston Gold–Antimony Project, targeting the Comet and Yankee prospects, where early sampling confirmed stibnite veining linked to gold mineralisation, reinforcing geological similarities to Fosterville and Costerfield.
Strong Financial Position Enables Acceleration of Exploration Programs
ADG maintained a robust cash position of A$4.23 million, providing a solid financial foundation to advance its near-term exploration and development initiatives. The company’s balance sheet was strengthened by recent capital inflows, including A$750,000 from the sale of Sarama Resources shares and A$1.25 million raised through the strategic placement to Nova Minerals. This strong cash position ensures ample funding flexibility to support upcoming drilling, sampling, and exploration programs across the Apollo and Lauriston projects, while also enabling ADG to pursue potential new opportunities within its growing gold–antimony portfolio. The combination of liquidity, strategic partnerships, and active exploration programs positions ADG well for continued operational progress and future value creation.
Updated Valuation and Price Target
We update our valuation for ADG to $0.027 per share in the base case and $0.032 in the upside case with a Price/NAV of 0.37x. ADG offers a compelling valuation opportunity, underpinned by its transition to production at the Challenger Mine and continued exploration success across its high-grade Victorian portfolio. The gold market remains resilient, with prices trading above A$6,000/oz, supported by global macroeconomic uncertainty, sustained central bank accumulation, and robust safe-haven demand. Despite this strength, our model applies conservative price assumptions below A$5,000/oz to maintain a conservative valuation. ADG’s diversified exposure to both gold and antimony also provides a strategic advantage, aligning the company with the global critical minerals supply chain and emerging downstream opportunities. With ADG’s strong balance sheet, strategic partnerships, and a pipeline of near-term catalysts, the company is positioned for meaningful re-rating potential as production stabilises, and exploration continues to deliver results.