Barton Gold is an Australian gold developer with 100% ownership of the only regional gold mill in the renowned central Gawler Craton of South Australia. Currently, it has JORC mineral resources of c 1.6Moz Au and is targeting future gold production of c 150,000oz annually.

We value Barton’s mill at A$0.46/share ‘as new’ and A$0.23/share ‘as is’. Hence, this asset alone almost covers Barton’s share price. Separately, we estimate Tunkillia’s pre-tax NPV (7.5%) of A$512m at c A$322.6m post-tax, or A$1.48/share. Based on EV/NPV multiples and adjusting for development stage etc, this translates into a further value of A$0.42–0.50/share, which is similar to the A$0.51/share NPV (10%) of dividends if the company were to raise equity to develop the project at its current share price. Therefore, we value Barton at A$0.65-0.96/share today. If it is able to extend its operations’ lives open-endedly via exploration (eg recently at Tarcoola), we calculate a possible valuation in excess of A$2.50/share.