Report on BTR by a research analyst

Sorry not sure if this has already been posted, I thought it was interesting reading

Brightstar Resources (BTR)Accelerating path to production· High-grade hits at Menzies. BTR recently reported the best drill results to date from five diamond holes at the Link Zone deposit, Menzies project. Key hit: 12m @ 11.9g/t Au from just 51m (incl. 1m @ 55.8g/t Au) and 1m @ 5.57g/t Au from 45m. · Fast-tracking commercial production. BTR is planning for early potential commercialisation via a small-scale mining campaign similar to the successfully completed Selkirk Mining JV earlier this year with geotechnical assessment at Link Zone is now completed and met testwork to commence imminently. This is ahead of larger operations being assessed in DFS.· 3Moz Resource will continue to grow. All Link Zone RC drill holes hit grades well above the global MRE, highlighting potential open-pit targets. These results are part of BTR's ongoing 30,000m drilling program across Menzies and Laverton, set to finish in September, with results expected in the coming months. All data will be incorporated into an updated MRE for the DFS. The recent proposed acquisition of Alto and Gateway project will boost BTR's total Resources to 3Moz @ 1.5g/t Au.· Strong support from investors reflects confidence in the projects. Last Friday, BTR announced it will reallocate the $4M equity portion of Tranche Two of AustKor's $40M debt facility to other institutional investors due to strong demand. The facility will be used to refurbish BTR’s Laverton processing plant. Following that, Lion Selection Group announced it will take up $1.5M in the Tranche Two placement, raising its total investment to $5.8M and boosting its stake in BTR to 6%.· Ramping up drilling at Sandstone. Last week, BTR also announced a $4M drill-for-equity deal with Topdrill, allowing up to 50% of future drilling services to be paid in BTR shares. This cost-effective strategy will accelerate exploration at Sandstone and help to boost resource estimates. This new agreement complements the existing $1M deal with Topdrill, further strengthening BTR’s financial capacity to deliver its strategy.· Attractive value for an emerging 100kozpa producer. We like BTR for its accelerated pathway to production, growing Resources and quality register. With ~$31M pro forma net cash, BTR is well-funded to expedite production via ore sales/toll treatment, which will generate cash flows to enable the rejuvenation of its Laverton plant. We expect further re-rating of the share price from its current market cap of $112M as BTR continues advancing its projects, supported by more drill results, resource upgrade and DFS. Trading at ~$53/oz of EV/Resource vs peers' average of ~$220/oz, BTR presents a compelling investment in today’s gold market.