Azzet reports on two ASX small caps trading double-digits higher following updates today.
Brightstar rallies on a high-grade update
Shares in Brightstar Resources (ASX: BTR) surged for the second consecutive day after the gold company announced that the second processing campaign under the Ore Purchase Agreement (OPA) with Genesis Minerals Ltd (ASX: GMD) has commenced and is expected to conclude later this month.
What’s clearly sunken in over night is the significance of yesterday's update, which saw the share price jump an initial 15%.
Since 14 May, the share price has risen around 25% to $0.68.
First the numbers: From ore sourced from the high-grade Second Fortune underground mine and existing lower-grade stockpiles from Brightstar's Laverton Hub, the company has delivered 55kt @ +2.0g/t Au to Genesis' Laverton Mill.
Today’s update follows an initial parcel of 56,449t of ore which reconciled to a blended head grade of 2.51g/t gold.
As well as being higher than the initial blended estimate of +2g/t gold it also achieved a strong recovery rate of 94.25% to deliver 4297oz of gold.
Based on its ore purchase agreement, Brightstar plans to deliver, sell and process up to 500,000t of ore from the Laverton Hub through Genesis' Laverton mill over the calendar year (CY) 2025 and Q1 CY26.
The company is hedge-free, allowing it to benefit from the current high gold prices of about US$3185 ($4955) per ounce.
Commenting on yesterday’s update, Brightstar’s managing director, Alex Rovira reminded investors that recent developments underpin the company’s goal of becoming a growing, material gold producer in the WA Goldfields.
Brightstar aims to be a +200koz p.a. gold producer within five years.
Fish development
In the meantime, development of the Fish underground mine continues on schedule and budget.
Brightstar has developed 220m of decline and capital development, with an underground drill platform being established in the coming weeks to support extensional and infill drilling at depth within the Fish orebody.
“The Fish underground mine is advancing well, with mining of first ore on track for June which is set to add high-grade Fish tonnes into future processing campaigns under the OPA,” said Rovira.
“Our definitive feasibility study work is nearing finalisation on the Menzies and Laverton assets that will position Brightstar to become a multi-asset gold producer across multiple mines and locations.”
Next steps
Brightstar will provide a detailed update to the market on the May processing parcel’s performance, including final recovered ounces, following the completion of metallurgical reconciliation within the next four weeks.
Meanwhile, mining and haulage activities continue at Second Fortune, Fish and Jasper Hills to prepare for a third processing parcel for the Laverton Mill, scheduled for Q3 CY25.
The Company’s Definitive Feasibility Study on its broader Laverton-Menzies development strategy is progressing well, with delivery on track for in 1H CY25 to further delineate Brightstar’s path to becoming a significant, multi-mine ASX-listed gold producer.
Brightstar has a market cap of $321 million; the share price is up over 70% in one year and up 36% year to date.
The stock appears to be in a long-term uptrend confirmed by multiple indicators.
Consensus is Strong Buy.
Etherstack soars on strong five month update
Shares in Etherstack (ASX: ESK) were up around 12% at noon after the small-cap tech stock signalled strong project execution across its global portfolio.
Today’s update revealed the company had received more than US$7 million in cash during the first five months of FY25 - the highest half-year operating cash inflow since listing.
Management flagged confidence in a “solid H1 and full FY2025 profit result.”
Revenue for the six months to 30 June 2025 is expected to significantly exceed the previous corresponding period and is now on track to surpass its full-year FY24 revenue total in the first half alone.
Project revenue aside, Etherstack is also growing its recurring income base through ongoing support contracts and its new “Communications as a Service” (CaaS) offering.
Underpinning medium-term profitability, these recurring revenue streams are expected to rise to over US$4.5 million by FY26.
The company also expects likely near-term multiple material orders from existing and long-term clients to “put Etherstack on path for an outstanding FY25” if secured.
Etherstack delivers essential wireless technology to the emergency services, utilities, the military and telcos.
The core focus is on a high-reliability infrastructure that functions during disasters.
With a business model combining hardware licensing and long-term support contracts, the company benefits from sticky, recurring revenues — sometimes spanning over 15 years.
The company has R&D facilities in Reading, Sydney, New York and Yokohama.
Etherstack’s market cap is around $43 million; the share price is up 32% in one year and up 47% year to date.
The stock’s shares appear to be in a near-term uptrend, confirmed by the relationship between the 5- and 20-day moving averages.
Consensus does not cover this stock.
This article does not constitute financial or product advice. You should consider independent advice before making financial decisions.
