Brightstar Resources Limited · ASX:BTR
Brightstar Resources — Resources Rising Stars - Gold Coast Conference 2024
42 slides from Brightstar Resources's conference presentation, Sep 4, 2024
Slide 1: Building a Growing West Australian Gold Producer
For personal use only BUILDING A GROWING WEST AUSTRALIAN GOLD PRODUCER Resources Rising Stars - Gold Coast Conference SEPTEMBER 2024
Slide 2: Important Notices & Disclaimers
Important Notices & Disclaimers Important Notices This presentation (Presentation) regarding the merger of Brightstar Resources Limited (Brightstar or the Company) and Alto Metals Limited (Alto) has been prepared by Brightstar and has been authorised for release by the Board of Directors of Brightst
Slide 3: Important Notices & Disclaimers: JORC Compliance Statement
Important Notices & Disclaimers JORC (2012) Compliance Statement Brightstar Mineral Resources • This presentation contains references to Brightstar’s JORC (2012) Mineral Resources, extracted from the ASX announcements titled “Aspacia deposit records maiden Mineral Resource at the Menzies Gold Projec
Slide 4: Growth-focused West Australian junior gold producer
Growth-focused West Australian junior gold producer Existing mining & development hubs combined with a third district-scale resource base to drive pathway to material production For personal use only Location, Production, Mineral Resources & Assets Combined Group Laverton, Menzies & Location: Lavert
Slide 5: Sandstone Consolidation
For personal use only SANDSTONE CONSOLIDATION A district-scale resource base
Slide 6: Regional Context
Regional Context The consolidated Sandstone Project is +100km from existing third-party milling operations in the Murchison A proposed centralised processing plant in Sandstone, fed by shallow, high- grade open pits from within the Montague and Sandstone Projects, would create For personal use onl
Slide 7: Alto Metals | Overview
Alto Metals | Overview A highly attractive land package with +1Moz in resource with material brownfields and greenfields exploration potential Strategic ground position of +740km2 over the Sandstone Greenstone Belt, in Western Australia For personal use only Surrounded by multi-million ounce gol
Slide 8: Sandstone Project – Significant scale with exploration upside
Sandstone Project – Significant scale with exploration upside Despite having delineated a meaningful 1.0Moz Au Mineral Resource, significant exploration upside exists at the underexplored Sandstone Gold Project Strategic ground position of +740km2 over the Sandstone Greenstone Belt - a prolific mi
Slide 9: Gateway Mining | Overview
Gateway Mining | Overview The Montague Gold Project is an attractive opportunity that is highly synergistic with the Alto transaction Montague Gold Project being acquired covers ~450km2 of tenure in a well-endowed For personal use only belt Located 70km NNE of Alto’s Sandstone Gold Project along
Slide 10: Montague Project – Strategic, shallow oxide ounces
Montague Project – Strategic, shallow oxide ounces 0.5Moz of Mineral Resources within a +1Moz Au endowed belt immediately adjacent tenure Projects being acquired: For personal use only o 19 tenements being purchased by Brightstar, covering ~450km2 o Tenements to be acquired includes all gold mineral
Slide 11: Step Change in Mineral Resources
Step Change in Mineral Resources Pro forma resource base establishes Brightstar at top end of ASX developer landscape and provides re-rate opportunity 3.0Moz For personal use only 3.0Moz 2.4Moz 2.3Moz 2.1Moz 1.9Moz 1.8Moz 1.8Moz 1.5Moz 1.4Moz 1.3Moz 1.2Moz 1.0Moz 0.9Moz 0.9Moz 0.9Moz 0.5Moz 0.7Moz P
Slide 12: Resource scale and grade
Resource scale and grade Sandstone transactions consistent with Brightstar’s strategy of targeting ‘mineable ounces’ with economies of scale and grade WA GOLD EXPLORERS / DEVELOPERS For personal use only 4.5 4.0 Rox Resources 3.5 3.0 Great Boulder Meeka Gold Matsa Grade (g/t Au) 2.5 Magnetic Resourc
Slide 13: Attractive acquisition multiples
Attractive acquisition multiples Strong M&A activity for ASX-listed WA pre-production gold assets transacting at ~$106/oz (EV/Resource ounce) – AUD gold price has achieved record levels since… stage is set for material value build to the benefit of all new and existing Brightstar shareholders Enterp
Slide 14: Why Brightstar?
For personal use only Why Brightstar? Assets, team and balance sheet to execute
Slide 15: Brightstar team to execute
Brightstar team to execute Aligned team with skills to execute – exploration, resource growth, studies, mine development, finance and production ANDREW RICH DEAN VALLVE TIM CLARKE Mine Development & EXECUTIVE DIRECTOR - OPERATIONS CHIEF OPERATING OFFICER ENVIRONMENTAL MANAGER For personal use only L
Slide 16: Corporate Snapshot | Current
Corporate Snapshot | Current Key Metrics Key Shareholders Board of Directors Research Coverage (Proforma) (Proforma) Richard Crookes For personal use only SBM / Linden $0.019 Founders 10% Non-Exec Chair Share Price Institutional Alex Rovira Investors 27% Managing Director $191m Andrew Rich Market Ca
Slide 17: Jasper Hills Exploration
Jasper Hills Exploration DFS drilling ongoing with positive assay results to date 15,000m RC and Diamond program almost complete: For personal use only o Fish: 27 RC holes (~5,000m) and 7 Diamond holes (~1,200m) complete o Lord Byron: 54 RC holes (~7,000m), and 3 Diamond holes (~600m) complete, 10 d
Slide 18: Active business in a rising gold price environment
Active business in a rising gold price environment Track record in meaningful advancement of strategic initiatives – next catalysts in sight Dec 2022 2023 1H 2024 2H 2024 For personal use only +$20m of new equity (ex-current Placement) and strengthened register with strategic and institutional share
Slide 19: Provides a platform to achieve a potential re-rating
Provides a platform to achieve a potential re-rating Significant room for growth in shareholder value through operational delivery of substantial production run-rate For personal use only The EV/Production (FY24e) of ASX-listed junior gold producers … implies significant room for growth to valuation
Slide 20: Brightstar value proposition
Brightstar value proposition Building the next Western Australian mid-tier gold producer For personal use only 1 Focused on logical and strategic consolidation targeting undervalued and mineable ounces in Western Australia 2 Existing production, record AUD gold price and processing infrastructure -
Slide 21: Project Overviews
For personal use only Project Overviews
Slide 22: Geographically complementary assets
Geographically complementary assets Focused mining hubs in proven gold districts, existing infrastructure, and a clear low capex path to mid-tier production profile Assets strategically located proximal to processing infrastructure, sealed highways and well- For personal use only maintained gravel r
Slide 23: Laverton Hub: Cork Tree Well, Alpha, Beta
Laverton Hub: Cork Tree Well, Alpha, Beta Consolidation of strategic Laverton assets to provide critical mass for potential restart and upgrade of the Brightstar mill Existing Brightstar Laverton portfolio is spread across multiple project areas: For personal use only o Cork Tree Well (6.4Mt @ 1.4g/
Slide 24: Laverton Hub: Second Fortune Gold Mine Overview
Laverton Hub: Second Fortune Gold Mine Overview Mining: Under Linden management, the mine was brought out of care & maintenance in 2021 and has subsequently mined +360kt ore @ 3.6g/t Au (incl. lower grade development ore) For personal use only Brightstar operates an owner-operator model with its own
Slide 25: Laverton Hub: Jasper Hills Gold Project
Laverton Hub: Jasper Hills Gold Project Lord Byron OP provides potential ‘base load’ processing feed and Fish UG provides potential high-grade +4g/t Au feed Jasper Hills is located 50km from Brightstar’s existing processing facility along a wholly-owned private haul road, allowing For personal use o
Slide 26: Menzies Hub overview
Menzies Hub overview Consists of a tenement holding of a contiguous land package of granted mining leases over a strike length of +20km Majority of deposits are hosted along the Menzies Shear Zone and located adjacent to Goldfields For personal use only Highway in Menzies (130km north of Kalgoorlie)
Slide 27: Laverton processing strategy
Laverton processing strategy Assessment of enlarged processing scenario Current site infrastructure has an independent replacement valuation of $60m(1) For personal use only The 2023 Scoping Study articulated a refurbishment and expansion study to upgrade to 480ktpa of fresh rock throughput Total Ca
Slide 28: Appendices
For personal use only Appendices
Slide 29: Appendix 1: Alto Scheme Overview
Appendix 1: Alto Scheme Overview All-scrip transaction via the Scheme, unanimously recommended by the Alto Board Structure • Acquisition of 100% of the ordinary shares in Alto via the Scheme under Part 5.1 of the Corporations Act 2001 (Cth) For personal use only • Each Alto shareholder will receive
Slide 30: Appendix 2: Montague Acquisition Overview
Appendix 2: Montague Acquisition Overview Cash and scrip transaction to acquire Montague Gold Project currently owned by Gateway (Montague Acquisition) • Acquisition of 100% of the Montague Gold Project Tenements owned by Gateway1 For personal use only Structure • Acquisition to be completed in new
Slide 31: Appendix 3: Transaction Rationale
Appendix 3: Transaction Rationale Western Australian gold company with combined assets, team and balance sheet to execute on ambitious growth trajectory • Strategic consolidation of a ~1,100km 2 landholding in the Sandstone region provides new district-scale growth platform to complement existing Br
Slide 32: Appendix 4: Proforma Capital Structure & Ownership
Appendix 4: Proforma Capital Structure & Ownership As of ASX close 30 July 2024 Placement, Topdrill & Units Brightstar Alto Scheme Montague Acquisition Pro forma Brightstar (as per Scheme Announcement) Genesis Minerals Pricing and Key Terms Share Price $/share 0.015 0.033 0.015 0.015 0.015 For perso
Slide 33: Appendix 5: A Bright spot in a challenging equity market
Appendix 5: A Bright spot in a challenging equity market Over the past 12 months, the AUD gold price has rallied 20% - despite this strengthening commodity backdrop, equity valuations and interest remains subdued: AUD Gold price - up 20% WA Gold Producer average1 - up 52% For personal use only Van E
Slide 34: Appendix 6: Board of Directors
Appendix 6: Board of Directors RICHARD ALEX ANDREW JONATHAN ASHLEY MATTHEW For personal use only CROOKES ROVIRA RICH DOWNES FRASER BOWLES NON-EXEC CHAIRMAN MANAGING DIRECTOR EXECUTIVE DIRECTOR NON-EXEC DIRECTOR NON-EXEC DIRECTOR NON-EXEC DIRECTOR (PROPOSED) Mr Crookes has over 35 years’ Mr Rovira is
Slide 35: Appendix 7: Brightstar Mineral Resources
Appendix 7: Brightstar Mineral Resources Location Cut-off Measured Indicated Inferred Total g/t Au kt g/t Au koz kt g/t Au koz kt g/t Au koz kt g/t Au koz Alpha 0.50 623 1.6 33 374 2.1 25 455 3.3 48 1,452 2.3 106 For personal use only Beta 0.50 345 1.7 19 576 1.6 29 961 1.7 54 1,882 1.7 102 Cork Tre
Slide 36: Appendix 8: Sandstone Mineral Resources
Appendix 8: Sandstone Mineral Resources Location Cut-off Measured Indicated Inferred Total CONSTRAINED (April 2023) g/t Au Mt g/t Au koz Mt g/t Au koz Mt g/t Au koz Mt g/t Au koz Lord Nelson 0.50 - - - 1.5 2.1 100 3.5 1.4 163 5.0 1.6 263 For personal use only Lord Henry 0.50 - - - 1.6 1.5 77 0.3 1.2
Slide 37: Appendix 9: Montague Gold Project Mineral Resources
Appendix 9: Montague Gold Project Mineral Resources Location Cut-off Measured Indicated Inferred Total g/t Au Mt g/t Au koz Mt g/t Au koz Mt g/t Au koz Mt g/t Au koz Montague-Boulder 0.60 - - - 0.5 4.0 67 2.6 1.2 96 3.1 1.6 163 For personal use only Whistler 0.50 - - - - - - 1.7 2.2 120 1.7 2.2 120
Slide 38: Appendix 10: Peer Comparison & References
Appendix 10: Peer Comparison & References TOTAL RESOURCE CODE COMPANY STAGE MARKET CAP (A$M) CASH (A$M) EV (A$M) SHARE PRICE MEASURED (Koz) INDICATED (Koz) INFERRED (Koz) GRADE (g/t) $EV/oz SOURCE DATE (Moz) MAU Magnetic Resources Resource $327.7 $9.0 $318.7 $1.270 203 402 1.33 1.7 $240 Investor Pre
Slide 39: Appendix 11: Recent M&A References
Appendix 11: Recent M&A References Pre-production WA Gold M&A Peer Comparison Information & References Total Deal Value EV/oz Measured Indicated Inferred Grade Acquirer Target Stage Date Resource Source ($m) ($/oz) (koz) (koz) (koz) (g/t Au) For personal use only (koz) Northern Star Strickland Miner
Slide 40: Appendix 12: Production Peer Comparison
Appendix 12: Production Peer Comparison Production Peers Information & References EV/Production Market JunQ’24 Annualised ASX Cash** Debt*** Enterprise Value (JunQ’24 Company Capitalisation* Production Production Source For personal use only Code ($m) ($m) ($m) Annualised) ($m) (koz) (JunQ’24) (koz)
Slide 41: Appendix 13: Key Risks
Appendix 13: Key Risks The following risks have been identified as being key risks specific to an investment in Brightstar Exploration and development on the assumption the transactions with Alto (Scheme) and Gateway are successful (Combined Group) and the Exploration is a high risk activity that re
Slide 42: Appendix 13: Key Risks
Appendix 13: Key Risks Foreign exchange risk Litigation risks The Company has an Australian dollar presentation currency for reporting purposes. However, gold is sold The Combined Group is exposed to possible litigation risks including contractual disputes and employee claims. throughout the world b
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