Brightstar Resources [ASX:BTR]
Metals & Mining
Building a Multi-Hub Western Australian Gold Producer: Goldfields First, Sandstone Next, A Clear Production Pathway
We are revising our target share price for Brightstar Resources (ASX: BTR) upwards to $1.83, implying a compelling 270% total upside from the current $0.495 share price. BTR is building a multi-hub WA gold producer anchored by Sandstone (2.4Moz @ 1.5g/t), with depth potential and district-scale control that provide leverage for resource growth, funded by operating cash flow and supported by DFS-backed expansion at the Goldfields Hub. Valuation upside is driven by a stronger gold price, confirmed with DFS 2.0 at the Goldfields Hub and execution on a scaled Sandstone thesis: following the Aurumin consolidation, BTR now holds rare control over a materially larger, contiguous footprint across the Sandstone greenstone belt, extending the discovery pipeline and underpinning a pathway to a hub-scale, long-life development outcome. In 2026, multi-rig drilling and key study milestones are designed to grow and upgrade the resource base into reserves, advancing towards TARGET200, Brightstar’s plan to build a ~200koz per annum, multi-hub gold producer.
Goldfields Hub: DFS 2.0 converts footprint into a finance-ready build plan
Goldfields Hub (Laverton and Menzies Projects) is Brightstar’s medium-term value driver. DFS 2.0, in January 2026, sets out a finance-ready plan built around a Brightstar-owned Laverton processing plant, giving BTR greater control and reduced reliance on toll treatment. The study schedules 9.42Mt at ~1.7g/t for 457koz recovered over six years (75koz pa), supported by 351koz of Ore Reserves at 1.6g/t. At A$6,000/oz, BTR reports pre-tax NPV8 A$606m and IRR 74% (17-month payback). Importantly, the recent A$180m capital raise is positioned to fully fund the equity component, materially de-risking financing and increasing confidence in the path to FID (MarQ’26) and first gold (JunQ’27), providing a clear milestone-led pathway to material production growth and the cash-flow bridge to fund the longer-duration Sandstone upside.
Sandstone Hub: Consolidate the Greenstone Belt, Unlock District Scale
Sandstone is Brightstar’s long-term growth engine because consolidation has delivered genuine district control, enabling a hub-scale development plan rather than a series of disconnected deposits. The Aurumin acquisition is the inflection point, giving BTR control across most of the Sandstone and Gum Creek Greenstone Belts (about 1,800 km²) and turning multiple deposits into a single integrated planning envelope. Sandstone now hosts ~2.4Moz at 1.5g/t Au, with ~1.2Moz hosted within 100m and ~1.6Moz within 150m of surface, supporting a largely open-pit pathway and infrastructure that can be right-sized early and scaled as confidence grows. Put simply, shallow ounces are typically cheaper to mine, and district control improves the odds that drilling success can be converted into Ore Reserves because it supports a single coherent mine plan. The next key step is a maiden Ore Reserve and Pre-Feasibility Study (PFS), targeted for early SepQ’26, designed to quantify first-pass hub economics.
Stock Rerating Driven by Resource Growth from Acquisitions and Drilling
Following recent milestones, we value BTR at $1.76 in our base case (256% upside) and $1.90 in our bull case (284% upside), relative to the current share price of $0.495. Using the midpoint of these scenarios, our target price of $1.83 implies a potential upside of 270%. Brightstar’s re-rating case rests on two hubs that operate in sequence. Goldfields is the medium-term delivery engine: DFS 2.0 provides a financeable build plan and a clear timetable to scaled production, shifting the narrative from “potential” to “execution.” Sandstone is the long-duration growth engine: district consolidation provides the scale and control to convert drilling into higher-confidence, mineable inventory over time. Goldfields is intended to deliver cash flow and de-risk the platform, while Sandstone is where that platform can compound toward TARGET200.