Forrestania Resources' Gold Pathway Trades at a Deep Peer Discount

A Mineral Resources co-founder and billionaire backers are building toward a genuine production re-rate, with fund managers arguing the stock remains significantly undervalued.

1 Oct 2026 · 3 min read

Forrestania Resources has become one of the ASX's most closely watched gold development stories, led by Mineral Resources co-founder David Geraghty and backed by WA billionaire families including Stokes and Roberts, with a mill acquisition and pathway to production driving a rally that fund managers argue leaves the company still significantly undervalued relative to peers.

A credentialed management team with a rare pathway to production

Wilson Asset Management described Forrestania Resources as a Perth-based mineral exploration company targeting gold, lithium, nickel and copper deposits primarily in Western Australia's Eastern Goldfields, Forrestania and Southern Cross greenstone belts, led by executive chairman David Geraghty, who spent 30 years in the resources sector including 21 years at Mineral Resources, where he played a key role in its growth. Katana Asset Management called Forrestania an emerging gold explorer that recently purchased a mill providing a pathway to production, its best performing stock for the month as a new addition, noting stocks like it are not a common sight in the fund but that it has a rare combination of a well-known and highly rated management team, a clear strategy and a genuine pathway to production. The fund said management was rapidly growing the resource base, with the recently acquired processing plant providing a pathway to accelerated production, and later noted management had appointed engineers to bring the Lake Johnson plant back online, with gold production possible by December that year, which would lead to a material re-rate in valuation.

FRS has a rare combination of a well-known and highly rated management team, a clear strategy and a pathway to production.

— Katana Asset Management, Monthly Report, November 2025

Backed by WA billionaires, building a gold powerhouse

Regal Funds Management described Forrestania Resources, helmed by Dave Geraghty, a founding member of mining giant Mineral Resources, as backed by WA billionaires including the Stokes family and the Roberts family of Multiplex fame, aggressively building a gold powerhouse, with the immediate catalyst for the $800 million company being a looming tender process.

Western Australian gold explorer Forrestania Resources, helmed by Dave Geraghty, a founding member of mining giant Mineral Resources, is backed by WA billionaires including the Stokes family and the Roberts family of Multiplex fame, aggressively building a gold powerhouse.

— Regal Funds Management, Article, June 2026

A significantly undervalued production story

Wilson Asset Management called Forrestania a standout, significantly undervalued relative to peers as it approaches a 120,000 ounce production re-rate in the December quarter of 2026, doubling into the first half of 2027 as its recently acquired Edna May mill comes onstream, run by a highly credentialed executive, with gold hitting some near-term macro headwinds it views as manageable. Separately, Wilson Asset Management said Forrestania is on track to be a 220,000 ounce producer by the first quarter of calendar 2027, with comparable companies trading at 3 to 4 times its current market cap. In its annual report, Wilson Asset Management said that rather than solely taking a directional view on gold prices, it focused on company-specific catalysts capable of driving returns independent of the underlying commodity, with holdings like Forrestania reflecting that approach.

Forrestania Resources is a standout at current levels in our view, on track to be a 220koz producer by 1QCY27, with comparable companies trading at 3-4x its current market cap.

— Wilson Asset Management, Article, July 2026

What fund managers say they are watching next is delivery of the 120,000 ounce production re-rate targeted for December 2026, the Edna May mill coming onstream driving a doubling toward 220,000 ounces by the first half of 2027, resolution of near-term gold price macro headwinds, and whether the market closes the valuation gap versus comparable companies trading at 3 to 4 times Forrestania's current market cap.