BPM owns Exploration Licenses right next door (40km along strike) to Rumble Resources who made the Chinook Lead/zinc discovery. BPM's projects share fundamental geological similarities with Rumble’s tenements in the region.
$0.060
Opened: 04-Feb-2022
Shares Held at Open: 1,670,000
What does BPM do?
BPM Minerals (ASX:BPM) is an exploration company aiming to make lead-zinc discoveries in the Earaheedy Basin in WA, Australia. BPM also holds other early stage gold-nickel projects across WA.
What is the macro theme?
Lead and zinc are two industrial metals that have moved higher due to an inflation-driven commodities supercycle. Lead is mainly used for Internal Combustion Engine (petrol car) batteries while zinc is primarily used for galvanising steel and making alloys. As fiscal and monetary stimulus increases infrastructure spending - we believe zinc in particular is primed to move beyond its current elevated price to all-time-highs.
Our Big Bet for BPM
BPM will return 10x by making a discovery and defining a deposit significant enough to move into development studies
Why did we invest in BPM?
Assets near Rumble Resources’ Chinook Discovery
BPM owns Exploration Licenses right next door (40km along strike) to Rumble Resources who made the Chinook Lead/zinc discovery. BPM's projects share fundamental geological similarities with Rumble’s tenements in the region.
Cap Structure
At the start of the year, BPM had only 49M shares and 38M options on issue with a market cap of just $13.7M. With ~$4.4M in cash in the bank and an enterprise value of $9.3M it is highly leveraged to a new discovery.
What do we expect BPM to deliver?
Objective #1: First Lead/Zinc drill holes in the Earaheedy Basin.
Milestones
Geochemical/geophysical surveys to generate drilling targets
Drilling permitting
Drilling commencement
Drilling results
Objective #2: Side bets: Drilling at the company’s other projects.
We expect BPM will make drilling progress on the company’s other projects, we are looking for:
Milestones
Drilling program at the Santy gold project
Drilling program at the Nepean nickel project
Drilling program at the Claw gold project
What could go wrong?
Permitting risk
There is always a risk with exploration projects that the necessary approvals or agreements like land access, heritage and native title agreements are not reached and permits can go un-granted.
Exploration risk
BPM's projects are at a very early stage, most are yet to have high-priority drill targets identified, any drilling programs done in the near-term could return no mineralisation.
Delay risk
We originally invested in BPM back in May 2021, hoping they would drill the Hawkins prospect before Christmas 2021… that definitely didn't happen so we now take BPM’s timelines with a grain of salt - timelines may be delayed.
Financing risk
BPM is a junior explorer with early stage projects. They still need to do a lot of target generation work before the projects are ready to drill, markets may lose momentum and funding for early stage higher risk exploration like this could dry up.
Commodity risk
We are primarily invested in BPM for the lead/zinc drilling at Earaheady, but the market may lose interest if lead and zinc prices cool off.
What is our investment plan?
Our investment plan for BPM is the same as for all our early stage, exploration investments:
Disclosure: The authors of this article and owners of Next Investors, S3 Consortium Pty Ltd, and associated entities, own 1,670,000 BPM shares and 850,000 BPM options at the time of writing this memo. S3 Consortium Pty Ltd has been engaged by BPM to share our commentary on the progress of our investment in BPM over time.
BPM announces new gold intercepts on BOTH sides of discovery hole - time to go deeper.
Oct 23, 2024
Oct 23, 2024 |
9 min
Gold hit another all time high today… Overtaking the all time high that it set only a few days ago… which beat the previous all time high only a few days before that… An excellent time to be drilling for and making new gold discoveries… Our $7.1M capped (with ~$3.85M pro forma cash) gold exploration Investment BPM Minerals (ASX: BPM) announced a new gold discovery only a few weeks ago.
BPM drill results due any day now. Last day before loyalty option ex date.
Oct 10, 2024
Oct 10, 2024 |
8 min
A few weeks ago BPM Minerals (ASX: BPM) hit high-grade gold at its greenfields exploration project directly next door to $2.2BN Capricorn Metals. The drillhole returned 30m @ 1.84g/t gold from 25m, inc. 5m @ 7.12g/t gold from 35m. A classic ‘discovery hole’ - and at the perfect time - with the gold price at all time highs.
BPM Announces New High Grade Gold Discovery at Claw Project
Sep 23, 2024
Sep 23, 2024 |
7 min
A great time for a new gold discovery. With the gold price on the rise and now at all times highs of US$2,631/oz. And finally, it looks like the market has got a taste for small cap gold stocks. On Wednesday last week, our Investment, BPM Minerals (ASX: BPM) announced a drill intercept of 30m at 1.8g/t of gold at its Claw project.
$5.2M microcap BPM is now drilling it’s Claw gold project - 500m from $1.6BN capped gold miner
Feb 1, 2024
Feb 1, 2024 |
10 min
BPM Minerals (ASX: BPM) is a tiny $5.3M capped explorer that has just started exploration drilling 500m away from a 3.24 million ounce gold resource.
Assays in - What does $6.5M capped BPM do next?
Nov 30, 2022
Nov 30, 2022 |
10 min
BPM recently put out their much anticipated lead-zinc project assays, next to Rumble Resources which is capped at $137M. While the company did confirm lead-zinc traces, the grades were not high enough to commit money to another drill campaign. In this article, we uncover what is next for BPM which has a strong cash balance of $5.3M, giving it a tiny Enterprise Value. The company can now turn its focus on its two gold projects (an unloved sector that we think will see some strength in 2023).
BPM gets permits for second drill program at WA gold discovery
Nov 6, 2024
Nov 6, 2024 |
2 min
Today, our gold exploration Investment BPM Minerals (ASX: BPM) has announced it has received approvals to undertake further RC drilling at its promising Louie gold discovery within the Claw project area in Western Australia.
BPM completes oversubscribed placement to advance gold exploration
Oct 5, 2024
Oct 5, 2024 |
1 min
Earlier this week BPM Minerals (ASX: BPM) completed a $1.675M capital raise. The raise was done at $0.10 (discount of 4.8%), there were no options and it was heavily oversubscribed.
BPM hits 30m of gold at 1.8g/t next to $2.4BN Capricorn Metals
Sep 18, 2024
Sep 18, 2024 |
3 min
Our micro cap Investment BPM Minerals (ASX: BPM) may have just hit a new gold discovery… BPM hit 30m at 1.8g/t of gold at its Claw project - which borders $2.4BN Capricorn Metals Mount Gibson mine.
BPM starts phase 2 drilling next to $2.2BN Capricorn Metals
Aug 19, 2024
Aug 19, 2024 |
2 min
Our micro cap exploration Investment BPM Minerals (ASX: BPM) just kicked off its second phase of drilling at its Claw gold project.
BPM picks up WA rare earths project
Jul 3, 2024
Jul 3, 2024 |
3 min
Our micro-cap exploration Investment, BPM Minerals (ASX: BPM), just picked up options to acquire a rare earths project in WA.
Market Optimism Peaks Ahead of the Holidays
Nov 16, 2024
Nov 16, 2024 |
11 min
The world is still digesting what exactly the US election result will mean for the next four years. The weeks after an election is often a “honeymoon phase”.
Why Small Caps Stand to Benefit from Precious Metals Push
Oct 26, 2024
Oct 26, 2024 |
25 min
Can you feel it? The small end of the market is… feeling good again? It’s being led by gold and silver price rises that are (finally) driving serious interest into a few smaller gold and silver stocks. And people are remembering how it feels when small stocks deliver price rises on high volumes.
Major Announcements Driving Volatility in Small Caps
Oct 12, 2024
Oct 12, 2024 |
15 min
The mood is good in small cap land. Cautious… but good. It was another positive week, with plenty of green across the board.
Rising Precious Metals Prices Fuel Optimism in Small Cap Markets
Sep 21, 2024
Sep 21, 2024 |
13 min
What a week for precious metals. Both silver and gold clocking in yet ANOTHER price rise overnight. And the market clearly has a growing appetite for precious metals stocks. Which is FINALLY trickling into small cap silver and gold stocks this week.
How will the Restrictions Impact the Critical Metals Market?
Aug 24, 2024
Aug 24, 2024 |
19 min
Could China’s latest export restrictions on critical metal antimony be the reminder the market needs? A reminder that new, domestic mines to supply “critical metals” need to be developed ASAP? And for the critical metals theme to cycle back on?
