Brightstar Resources Limited · ASX:BTR
Brightstar Resources — South-West Connect Conference (October 2023)
37 slides from Brightstar Resources's conference presentation, Oct 18, 2023
Slide 1: Investor Presentation
Investor Presentation OCTOBER 2023
Slide 2: Important Notice & Disclaimer
Important Notice & Disclaimer Important Notices This Presentation has been prepared by Brightstar Resources Limited (Brightstar) and is authorised by the Board of Directors of Brightstar. Disclaimer • This Presentation has been prepared by Brightstar based on information from its own and third party
Slide 3: Cautionary Statement
Cautionary Statement Cautionary Statement • The Scoping Study referred to in this ASX release has been undertaken to evaluate the potential development of the Menzies Gold Project (“Menzies Project”) and the Laverton Gold Project (“Laverton Project”)(together, the “Projects”) located in the Eastern
Slide 4: Project Overview
Project Overview +1Moz JORC Resources – Open and growing to deliver scale to become a material and relevant participant in the WA gold sector Tier-1 jurisdiction with compelling land position in two proven goldfields with multi-million ounce endowments: • Significant operations nearby include Granny
Slide 5: Corporate Overview
Corporate Overview SHARE PRICE $0.011 1.9bn 0.030 30 Share Price Shares on issue 0.025 25 Share Price (A$/share) Volume (M) 0.020 20 1 $20m $3.5m 0.015 15 Market Capitalisation Cash 0.010 10 0.005 5 – $17m - 0 Debt Enterprise Value Oct-22 Dec-22 Mar-23 May-23 Jul-23 Oct-23 Volume (m) Share Price (A$
Slide 6: Compelling Economics Delivered in a Low-Risk Start-Up
Compelling Economics Delivered in a Low-Risk Start-Up Total Material Processed LOM Gold Produced Plant Throughput2 Open Pit: 4.2Mt @ 1.8g/t Au 322koz over 8 years 480ktpa Mining Underground: 1.1Mt @ 3.0g/t Au Physicals Annual Production C1 Cash Cost1 40koz pa A$1,765/oz Pre-tax NPV8% IRR (pre-tax) G
Slide 7: Production Summary and Overview
Production Summary and Overview • Two project areas: o Menzies Gold Project (MGP) o Laverton Gold Project (LGP) UG • Four mines: o 1x open pit and 1x underground at MGP o 1x open pit and 1x underground at LGP UG OP • Upfront capital required: A$22 million UG • Payback: 1.5 years UG OP OP OP OP • Cum
Slide 8: Key Study Outcomes
Key Study Outcomes PROJECT COSTS FINANCIAL METRICS SUMMARY CAPITAL COSTS Gold Price Assumed A$/oz A$2,900 Pre-Production Capital A$m 22 Spot Gold Price 1 A$/oz A$3,000 Sustaining Capital A$m 53 Discount Rate % 8 Growth Capital A$m 94 PROJECT VALUATION @ A$2,900/oz OPERATING COSTS LOM EBITDA A$m 153
Slide 9: Mining Phase 1 – Menzies Gold Project
Mining Phase 1 – Menzies Gold Project Selkirk • Development of 1x large open pit complex and 1x underground mine at the MGP • Lady Shenton System comprised of three open pit mining areas / deposits: o Pericles, Stirling (new pits) and Lady Shenton cutback Menzies Town • Yunndaga underground utilisin
Slide 10: Menzies Gold Project
Menzies Gold Project Simultaneous development of open pit mining at Lady Shenton system and underground mining at Yunndaga • 3 open pit mining areas at Lady Shenton • Mining Physicals: o Total movement of 10 million BCM o Average strip ratio of 10.8:1 o Ore of 1.9Mt @ 1.63g/t Au for 100koz mined • O
Slide 11: Mining Phase 2 – Laverton Gold Project
Mining Phase 2 – Laverton Gold Project • Portfolio is spread across multiple project areas: Alpha U/G o Cork Tree Well (6.4Mt @ 1.4g/t Au for 303koz Au) o Alpha (1.4Mt @ 2.3g/t Au for 106koz Au) o Beta (1.9Mt @ 1.7g/t Au for 102koz Au) • Development of four open pits at Cork Tree Well and 1x undergr
Slide 12: Laverton Gold Project
Laverton Gold Project Staged development of open pit mining at Cork Tree Well and underground mining at Alpha • 4 open pit mining areas at Cork Tree Well: o 2 cut-backs (South 1 & 2), 2 new open pits (Central & Delta) • Mining Physicals: o Total movement of 12 million BCM o Average strip ratio of 11
Slide 13: Laverton Processing Strategy
Laverton Processing Strategy • Infrastructure has an independent replacement valuation of A$60 million • GR Engineering Services Ltd (GRES) completed a refurbishment and expansion study to upgrade to 480ktpa (fresh rock throughput) • Total Capital Cost $18.5 million o Replace entire crushing circuit
Slide 14: Attractive Low Capital Development vs Peers
Attractive Low Capital Development vs Peers Scoping Study outputs indicate a readily fundable project with a compelling return on capital investment Brightstar Rox Capricorn Black Cat Astral Black Cat Musgrave Black Cat Pantoro Calidus AusGold Bellevue Gold Red 5 Resources Resources Metals Syndicate
Slide 15: Upside and Opportunities for PFS
Upside and Opportunities for PFS MENZIES LAVERTON Yunndaga Upside Infill drilling to convert Infill drilling to convert Inferred Resources to Inferred Resources to Indicated classification Indicated classification Targeted drilling on the edges / adjacent to Extensional drilling at optimised pit she
Slide 16: Selkirk Mining Joint Venture
Selkirk Mining Joint Venture 50:50 Mining JV with BML Ventures Pty Ltd 30kt of ore at +5g/t Au • Clearing & First Blast: Mid-August • Mining Commences: Late August • Progressing on schedule and budget: October • Processing: Scheduled at Gwalia (ASX:GMD) for February 20241 Brightstar Resources Limite
Slide 17: Key Catalysts and Value Drivers
Key Catalysts and Value Drivers Year CY2023 CY2024 CY2025 Quarter Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 DRILLING Resource Definition - Menzies & Laverton Diamond Drilling (Met, Geotech, Extensional) Ongoing RC Resource Definition Programs Targeted Resource Updates - Menzies & Laverton Exploration Greenfield
Slide 18: Summary
Summary +30% conversion of Resource ounces to De-risked staged mine plan: Laverton processing plant unlocks Mine Plan delivering 322koz recovered 2 project areas with 1x open pit and inorganic opportunities in the Laverton from 1.02Moz JORC Resource base 1x underground mine in each project district
Slide 19: Project Overview
PROJECT OVERVIEW
Slide 20: Laverton Gold Project Overview
Laverton Gold Project Overview Base load resources with material exploration upside and a processing solution Approximately 300km2 of 100%-owned tenure in the Laverton Tectonic Zone which is renowned for its significant mines currently being mined to >1,500m depth (Sunrise Dam and Granny Smith) Port
Slide 21: Cork Tree Well – Scale & Upside
Cork Tree Well – Scale & Upside Open pit +303koz JORC Resource Open Along Strike and at Depth JORC Mineral Resource upgrade to 6.4Mt @ 1.4g/t Au for 303koz o Including 157koz @ 1.6g/t Au in Indicated classification OPEN OPEN Recent drilling focused on Resource growth and conversion of Inferred to In
Slide 22: Menzies Gold Project Overview
Menzies Gold Project Overview Contiguous land package in prolific historic mining field Consists of a tenement holding of a contiguous land package of granted mining leases over a strike length of +17km Majority of deposits are hosted along the Menzies Shear Zone and located adjacent to Goldfields H
Slide 23: Exploration Upside – Menzies Gold Project
Exploration Upside – Menzies Gold Project Limited and ineffective historical exploration provides high-grade opportunities at Menzies Despite a long and successful mining history, exploration drilling at Menzies was historically focused on: • Near mine exploration in and around the active mining cen
Slide 24: Appendices
APPENDICES
Slide 25: Board & Management
Board & Management ALEX DEAN GREG JONATHAN JOSH TONY ROVIRA VALLVE BITTAR DOWNES HUNT LAU MANAGING DIRECTOR COO NON-EXEC CHAIRMAN NON-EXEC DIRECTOR NON-EXEC DIRECTOR NON-EXEC DIRECTOR Mr Rovira is a qualified Mr Vallve holds technical Mr Bittar holds a Master of Mr Downes has over 25 Mr Hunt is an M
Slide 26: Consolidated JORC 2012 Resources
Appendix 1 Consolidated JORC 2012 Resources Location Measured Indicated Inferred Total Au Cut-off (g/t) Kt g/t Au Koz Kt g/t Au Koz Kt g/t Au Koz Kt g/t Au Koz Alpha 0.5 623 1.6 33 374 2.1 25 455 3.3 48 1,452 2.3 106 Beta 0.5 345 1.7 19 576 1.6 29 961 1.7 54 1,882 1.7 102 Cork Tree Well 0.5 - - - 3,
Slide 27: Production Summary
Appendix 2 Production Summary Total gold produced of 322koz at an AISC of A$2,041/oz over the life of mine • LOM production underpinned by 66% production of ounces from Measured and Indicated Resource classification • Payback period (first 1.5 years of production) comprised of 70% Mineral Resources
Slide 28: Project Sensitivity Analysis
Appendix 3 Project Sensitivity Analysis The combined development displays robust financial metrics under different scenario analysis and various downside scenarios Project NPV (unleveraged and pre-tax) Sensitivity Analysis Scenario Analysis (Gold Price Assumptions) Base case Current spot Gold Price
Slide 29: Project All In Sustaining Costs
Appendix 4 Project All In Sustaining Costs The project displays attractive LOM AISC margins utilising conservative gold price assumption at A$2,900/oz • Application of real mining and processing costs obtained from June 2023 market quotes • Opportunities to reduce AISC through further optimisation o
Slide 30: Menzies Gold Project Physicals
Appendix 5 Menzies Gold Project Physicals • 3.5 years of toll treatment processing • Combined processing physicals: o 2.6Mt of ore o Average head grade of 1.95g/t Au o Recovered gold 153koz Au o Recovery 95% • Robust early mine life production profile: o Year 1: 49koz o Year 2: 63koz o Year 3: 36koz
Slide 31: Laverton Gold Project Physicals
Appendix 6 Laverton Gold Project Physicals LAVERTON GOLD PROJECT - PRODUCTION • +5 years of owner operator processing 18,000 180,000 • Cork Tree Well open pit and Alpha underground mine 16,000 160,000 • Combined processing physicals: QUARTERLY RECOVERED GOLD (OZ) 14,000 140,000 o 2.7Mt of ore 12,000
Slide 32: Recent M&A Increase in WA Pre-development Gold Space
Appendix 7 Recent M&A Increase in WA Pre-development Gold Space M&A activity for ASX-listed WA pre-production gold assets Enterprise Value per Ounce (A$/oz) (M,I&I)1 $950/oz $226/oz 226 $217/oz 217 $176/oz 2 176 M&A Average EV/oz of $108/oz* Brightstar EV/oz: A$17/oz $66/oz 66 $56/oz 56 $48/oz 48 $3
Slide 33: Peer Comparison
Appendix 8 Peer Comparison - combination of attractively priced ounces that belies the inherent value of Brightstar’s assets $80 90% $390M $316M Enterprise Value (A$ per Resource Ounce) $70 80% 70% $60 EV/Resource oz Average $56/oz 60% Measured & Indicated % $50 50% $40 40% $30 30% $20 20% $10 10% $
Slide 34: Pre-production WA Gold M&A Peer Comparison Information & References
Appendix 9 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 ($Am) ($AUD/oz) (Koz) (Koz) (Koz) (g/t) (Koz) Northern Star Strickland Minerals Sale of Millrose Project Resource Develop
Slide 35: Peer Comparison Information & References
Appendix 10 Peer Comparison Information & References Source: IRESS, Company Announcements . Pricing as at 16/10/23. Cash balance as reported in June 2023 Quarterly Report TOTAL RESOURCE CODE COMPANY STAGE MARKET CAP (A$M) CASH (A$M) EV (A$M) SHARE PRICE MEASURED (Koz) INDICATED (Koz) INFERRED (Koz)
Slide 36: WA Gold Peer Comparison Information for Mining Studies
Appendix 11 WA Gold M&A Peer Comparison Information & References for Mining Studies Pre-tax Net Capital Source Production Pre-Production NPV Discount Payback NPV/Capex Gold Price Code Company Study Stage Project LOM (Yr) Present Value Intensity (ASX Date Profile (ozpa) Capex (A$m) Rate Used (%) Peri
Slide 37: Alex Rovira – Contact
ALEX ROVIRA Managing Director alex@brightstarresources.com.au brightstarresources.com.au
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