Strickland Metals [ASX:STK] Update October 2025
Metals & Mining
Resource Expansion Underpinned by Multi-Rig Drilling and Near-Term Upgrades
We update STK with a revised Target Share Price $0.638, this represents a total upside potential of 311.3%, reflecting significant increase from the current share price of $0.155 and an 20.5% increase from our Target Share Price since our last report from May 2025. Our re-rating reflects decisive portfolio actions and execution. The Yandal divestment sharpened a Rogozna-first strategy and strengthened the balance sheet. 2025 drilling at Shanac, Gradina and Kotlovi, supported by positive metallurgy, has expanded scale and confidence. Record gold prices improve project economics. Looking ahead, Strickland is positioned to convert momentum into shareholder value via continued high-impact drilling, step-out/resource definition at Rogozna, and a disciplined, capital-efficient program focused on rapid resource growth and de-risking.
Fully funded, single-asset focus after Yandal sale
Strickland is now a one-story company: Rogozna in Serbia. After selling the Yandal Project for A$45m in Gateway shares, ~15.7% kept, the balance sheet is strong and simple. With eight diamond rigs running inside a ~50,000 m 2025 drill plan, STK has the money and capacity it needs. Cash, listed investments (including Northern Star and Gateway), and a strategic investment from Zijin mean no near-term equity raise is required. The spend is focused where it counts: growing resources, upgrading confidence, and advancing metallurgy and geophysics ahead of late-2025 milestones.
Drill program continues to deliver positive results across the main targets
Rogozna is consistently returning encouraging hits across its main targets. At Shanac, long, steady mineralised runs confirm big-scale potential, and a newly identified deeper copper-gold zone adds extra grade and handy by-product upside. Gradina is shaping up as the “quality-ounces” engine, with repeat high-grade gold over roughly a kilometre and simple, high-recovery processing in early test work. Kotlovi, only ~350 m from the Medenovac resource, delivered a standout long intercept and remains open, exactly the kind of near-field growth that can be folded into a central development plan efficiently. With eight rigs turning, assays continue to land, reinforcing the momentum.
Increasing gold prices, clear path and Late 2025 Catalysts
Strickland has a clear pathway forward: ongoing porphyry drilling, guided by modern geophysics, that could add district-scale copper-gold; a Shanac resource update that captures 2025 drilling and the deeper Cu-Au zone; and Gradina’s first mineral resource, supported by sustained definition drilling and clean metallurgy. Together, these aim to deliver more ounces and higher confidence, all with support from a firm AUD gold price, which can lift early margins and improve project economics as studies progress.
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Stock Rerating Driven by Project Sale, Discovery and Increased Gold Prices
We value STK at A$0.627/ share in our base case (+304.3% upside) and A$0.648/share in our bull case (+318.3% upside). Using the midpoint, our A$0.638/ share target price implies +311.3% potential upside from the current price at A$0.155. This valuation reflects Rogozna’s acceleration, eight rigs, step-change Shanac intercepts, consistent Gradina results, and revived copper–gold targets, alongside portfolio simplification via the Yandal divestment, which sharpens focus and liquidity. The fully funded 50,000 m program targets catalysts like resource updates to Shanac and a maiden MRE at Gradina. We see a clear pathway to further MRE growth and staged de-risking, with upside as drilling, metallurgy, and study milestones are delivered and execution risk declines.