“Edison is the go-to for a new investor to get full understanding of the investment case and business. Edison’s distribution reaches investors that we want to connect with directly.”
Join us for investment knowledge across your choice of sectors and equities.
To continue reading, log in or create a free account below.
Close
Close
Close
Create An Account
If you have an account with us, please click the sign in button below.
Stock of the month – Barton Gold
Energy & Resources
Stock of the month – Barton Gold
Barton Gold is an Australian gold developer transitioning to production against the backdrop of record-high gold prices – Edison values BGD at A$2.84/share base case (A$3.71 at spot gold), versus A$0.88 in market.
In focus: Transition from explorer to developer – Barton has grown its consolidated JORC resource base by c 648koz (+41%) in 22 months to 2.24Moz Au plus 3.1Moz Ag, anchored by 100% ownership of the fully-permitted Central Gawler Mill (CGM) in South Australia’s Gawler Craton, a tier-1 mining jurisdiction.
Momentum: A definitive feasibility study (DFS) is underway for ‘Stage 1’ CGM production targeting first site works in H2 CY26. Tunkillia ‘Phase 2’ resource upgrade drilling began in March 2026 with dual diamond rigs now turning, targeting a pre-feasibility study (PFS) and mining lease (ML) application by year-end 2026. BGD joined the ASX All Ordinaries Index in September 2025.
Valuation: In October, Edison valued BGD at A$2.84/share (base case) rising to A$3.71/share at the then spot gold price of US$3,830/oz, with further upside to A$7.45/share over the life of operations.
Catalysts ahead: Challenger JORC Ore Reserve declaration and Stage 1 DFS completion (H2 CY26); Tunkillia mineral resource estimate upgrade (August 2026); Tunkillia PFS and ML application (November 2026); CGM site works start (December 2026); and Tolmer high-grade silver drilling results through Q2 CY26.
What is next?
Key takeaway: Gold is trading above US$4,600/oz – c 38% higher than the US$3,333/oz used in Barton’s Tunkillia scoping study and well above the US$1,866/oz long-term price used in Edison’s base case. This leverage is not reflected in the share price, which has pulled back c 40% from January highs near A$1.45.
Drivers: The ‘real assets’ rotation theme remains intact. Central banks have bought more than 1,000t of gold annually for three consecutive years; foreign reserve managers now hold more gold than US Treasuries for the first time since 1996. US federal debt has passed US$38tn, reinforcing the case for non-fiat reserve assets and pulling capital into gold developers with near-term production pathways.
Current view: April 2026 drilling assays at Challenger returned intervals up to 170 g/t Au at Challenger Main and 60 g/t Au at Challenger West, underpinning the DFS mine plan. Pit optimisation drilling is complete; reverse circulation (RC) resource upgrade drilling delivered 8,065m across 112 holes by late March. The development story is de-risking on schedule while the share price has lagged the operational progress.
What’s next: Watch for Tunkillia Phase 2 RC assay results through Q2 CY26, Challenger JORC upgrade and Stage 1 DFS progress update in the coming months, credit financing discussions in mid-2026 (Bedrock Advisory Partners appointed to manage Stage 1 debt process) and first production from CGM targeted for CY27.
