BTR has commenced ore processing at Genesis Minerals’ Laverton mill under the Ore Purchase Agreement. The initial ore parcel of 60kt @ 2.0g/t has been sourced from a combination of the Second Fortune underground and low-grade stockpiles from Lord Byron. We expect the first ore parcel to yield ~3.5koz of gold assuming a 90% recovery rate. BTR should become a consistent producer from this point, with ore parcel volumes expected to increase each month under the initial 15-month ore purchase agreement. The release of the Laverton & Menzies study presents a key near-term catalyst for BTR. Cash flow from the Ore Purchase Agreement should enable BTR to refurbish its Laverton process plant and develop the Lord Byron and Cork Tree Well open pits. These projects have the capacity to produce ~45kozpa for 5-6 years. Sandstone remains BTR’s core project, containing over 50% of its 3.0moz of gold in resource. Exploration is at an early stage, and advancing Sandstone towards production remains the key value creation opportunity. We reiterate our SPEC BUY rating and A$0.05 price target on BTR.
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