Dear Investors & Colleagues,
Another big month with BGD now entering the significant inflection point for which we have long planned. This means moving into a commercialisation pathway for our 'Stage 1' operations (targeting 2026 start) and 'Stage 2' Tunkillia growth project.
Just for fun, it seems we've also made quite an exciting silver discovery, with additional drilling intersections ranking in various 'Global Top 10' publications during April.
Looking back
Barton has seen a significant increase in investor awareness during the past 5 weeks, driving trading volumes and BGD shares higher. Key contributing factors include:- A$3.1m Half Year Profit - unusual for a pre-operations junior you might say - whichcaught the attentionof industry legend Barry Fitzgerald;
- A gear shift -we are now pursuing Stage 1 production from 2026;
- A 'scale' acceleration - with an expedited Tunkillia's Optimised Scoping Study;
- A Tolmer high-grade silver discovery - withfurther high-grade extensions; and
- A record gold price re-based at US$3,000 underwriting our long-term strategy.
For the BGD team it has been 5 years of diligent and careful work preparing for this exact moment. We are now moving to unlock the deep value we have built into our assets.
We believe that most of the market is yet to register the BGD story - and that we are still in the early days of the 'awareness curve'. Our 'nearest and purest' ASX comparable, Astral Resources (ASX:AAR), has a ~$200m Enterprise Value - roughly 2x our EV - but not a fully-permitted mill which they can cheaply leverage to cash-flowing operations.
As we advance our work - and deliver more news detailing our Stage 1 production plan - we expect to see continued, rapidly growing interest from new investors. With our existing mill we have an attractive, low-dilution pathway to 150,000oz production - one which, uniquely, we control through a low-cost step from 'explorer' to 'earnings multiples'.
Coming up
As noted above, the market has risen to meet our long-term strategy, and we've accelerated on all fronts. We have an excellent team of South Australian professionals grinding away on a half dozen different fronts. Key near-term catalysts will include:- Tunkillia:
- Optimised Scoping Study -imminent;
- Accelerated long-lead ML application / PFS studies -imminent;
- Tarcoola:
- Expedited Tolmer high-grade silver drilling -imminent;
- 'Stage 1' JORC Resources upgrades -next 3 months;
- 'Stage 1' production:
- mill configuration / capex studies, and production plan -next 3-6 months;
- production startup -targeting mid-2026.
The value proposition to existing and new shareholders over the next 12 months is therefore very strong, and we are well positioned withnot only $7m cash, but a $12m track record of self-funding via asset monetisation.
As we shift gears, our Central Gawler Mill (CGM) is a significant leverage point offering a short, lower-cost/risk path to operations, a re-rating to 'producer' status, and cash flows to fund Tunkillia's development.It is also existing, fully-permitted, above-ground infrastructure - offering real security value for non-dilutive funding pathways.
Our leadership will be presenting at this week'sRIU Resources Roundup Conferencein Sydney. If you are attending, please do come and meet the team working as hard for your investment as you did. We will also be presenting on 15 May at theJane Morgan Management Virtual Gold Forum - investor registration is free.
We've never been more excited for the future. Thank you for joining us on the journey.
Regards,
Alexander Scanlon
Managing Director & CEO |
|
(20min delay)