Key Highlights:

  • Forrestania has more than doubled its share count since August to fund a $300 million gold deal, and its Takeover of Zenith Minerals has drawn a Takeovers Panel finding.
  • Solstice Minerals joined the All Ordinaries on 21 September after a rise of several hundred per cent, and has slipped back from its 52-week high.
  • Both are Western Australian explorers whose valuations depend on sentiment, drilling results and funding news.
  • Upcoming company updates and execution against stated plans remain central to the next phase for both stocks.

Forrestania Resources and Solstice Minerals have both eased from their recent highs in September 2026, but for different reasons. Forrestania is working through heavy share issuance and a contested takeover of Zenith Minerals, while Solstice appears to be consolidating after a huge 12-month run and its new place in the All Ordinaries.

Small-cap resources after a strong run

Western Australian small-cap resources stocks have had a strong 2026, helped by high metal prices. Gold was trading at around US$4,400 an ounce in early September, near record levels, and ASX gold shares rose about a third in the month to 1 September, . Stocks that rise that far can give back gains quickly.

The broader market has been mixed. On 22 September, the S&P/ASX 200 rose 0.30% and the All Ordinaries gained 0.36% , though investors were uneasy about interest rates ahead of the Reserve Bank of Australia's 29 September meeting.

Index changes also play a part. In the September 2026 quarterly rebalance, announced on 4 September and effective before the open on 21 September, Solstice was added to the All Ordinaries. Forrestania was not part of those changes. Market coverage has previously described it as an All Ordinaries constituent.

Forrestania Resources (ASX:FRS): a new gold producer carrying a much larger share count

Forrestania was a gold explorer until recently and is now trying to become a producer. On 4 September it completed its $300 million purchase of the Edna May gold project from Ramelius Resources. it paid $210 million in cash and 225 million Forrestania shares valued at $90 million, which works out to about 40 cents a share. The cash came from a roughly $310 million two-tranche placement. Shareholders approved the $215 million second Tranche on 28 August.

That funding explains much of the pullback. about 1.59 billion shares on issue in early August. now shows about 2.43 billion, with the stock at 33 cents and a Market Value of about $800 million. That is below the implied 40-cent value of the Ramelius shares and below the 43-cent close on 29 June. Issuing this much new stock often brings selling pressure.

The Zenith Minerals takeover adds uncertainty. On 28 August, the Takeovers Panel declared unacceptable circumstances in Forrestania's all-scrip offer of one Forrestania share for every 4.3 Zenith shares . Among its findings, the Panel said Forrestania lodged a substantial holding notice late. After Forrestania confirmed it was complying with the Panel's orders, its shares fell 5.26% to 36 cents . At that point it held a 58.33% relevant interest in Zenith. The offer has been extended for the ninth time and now closes on 21 October.

The company also has positive news. The British Hill resource grew 21% to 212,400 ounces at 1.60 g/t gold in a late-September update, and Indicated ounces now make up more than half the total. show executive chairman David Geraghty bought more than 13 million shares in September at prices of roughly 33.5 to 37.7 cents.

Solstice Minerals (ASX:SLS): a copper-gold discovery after a large rerating

Solstice explores in Western Australia's Eastern Goldfields and Murchison. Its share price has been driven by the Nanadie copper-gold project, about 95 kilometres south-east of Meekatharra. In February, first-pass drilling returned 62 metres at 1.55% copper and 0.66 g/t gold, and the shares rose about 148% in four days . In April the company raised $32.6 million at $1.00 a share, with specialist North American resource funds among the investors.

Drilling results have continued to come in. On 28 August, Solstice reported mineralisation extending to 722.3 metres depth at 0.44% copper . On 16 September it reported 52 metres at 0.71% copper outside the existing 40.4-million-tonne resource. The company has about $45 million in cash and no debt.

Pricing is where the pullback shows. the shares at about $2.52 early on 23 September, up from a $2.48 close the previous day. That is below the 52-week high of about $2.75 and gives a market value of around $435 million. in August that the stock had risen 764% over 12 months. We could not find a specific negative announcement behind the latest softness, which appears tied to consolidation and small-cap flows.

What links the pair, and where they differ

Both are Western Australian resources companies that went from micro-cap to mid-tier small-cap within about a year, funded by large share issues. Solstice's April Placement at $1.00 is still well below its current price, whereas Forrestania trades below the implied value of the shares it issued to Ramelius.

Their risks differ. Forrestania faces execution risk in refurbishing plants and restarting production while the Zenith bid runs. Solstice's value rests largely on whether Nanadie keeps growing with each set of assays.

What investors could watch next

For Forrestania, the key dates are the 14 October notice on the status of the Zenith offer conditions and the 21 October offer close. Updates on refurbishment at Edna May and Lake Johnston will also matter, as the company targets combined milling capacity above 6 million tonnes a year. More British Hill drilling and progress on a milling route are also due.

For Solstice, results from 16 diamond holes and more than 20 RC holes were still pending as of mid-September. A deep hole of about 850 metres is testing a large electromagnetic conductor, co-funded by the WA Government. Both stocks remain exposed to gold and copper prices, the RBA decision on 29 September and general risk appetite in small caps.

The bottom line

The two stocks are pulling back for different reasons. Forrestania's slide reflects a larger share base, the Zenith dispute and the work still needed to restart production. Solstice's easing looks more like consolidation after a strong discovery-led rally and its index inclusion. For both, the next round of results and corporate milestones is likely to matter more than the recent pullback.