BPM Minerals Logo.png

BPM Minerals Ltd Limited


Last Price:


Our Investment Summary

Date of
Initial Coverage


Entry Price


Returns from
Initial Entry


Investment Memo: BPM Minerals Ltd (ASX:BPM) - LIVE

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.

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 in 2022?

Objective #1: First Lead/Zinc drill holes in the Earaheedy Basin.

  • The Hawkins Project sits ~40km along strike from the Rumble discovery and is the highest priority project for BPM in this region.
  • We want to see the company rapidly define drill targets and then drill them this year.


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:

  • 5,000m of AC drilling at the Santy gold project
  • 2,500m of RC drilling at the Nepean nickel project
  • 5,000m of AC drilling at the Claw gold project.


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:

  • Invest early (way before the main, initial drilling event)
  • Patiently wait till the drilling event approaches (late 2022)
  • Free carry and take some profit prior to the initial drill results
  • Hold a position into the result
  • Reassess the plan based on the initial results.

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.

Investment Milestones for BPM

Initial Investment: @20c
Top Slice
🔲 Free Carry
Increased Investment: @20c
🔲 Free Carry
🔲 Take Profit
🔲 Price increases 300% from initial entry
🔲 Price increases 500% from initial entry
🔲 Price increases 1000% from initial entry
12 Month Capital Gain Discount
🔲 Hold remaining Position for next 2+ years

Our Past Commentary on BPM Minerals Ltd

Date Title
23-Jul-2022 $ 0.145 Our new Investment. Battery materials bottom? Summary of the key media events this week.
19-Jul-2022 $ BPM Sees Lead-Zinc Along Strike From Rumble, Assay Results Next
02-Jul-2022 $ 0.155 Tax loss selling over, market back in August?
30-Jun-2022 $ BPM drilling restarted - tiny market cap leveraged to success
14-May-2022 $ 0.175 Small caps in a shocking market
10-May-2022 $ $10M capped BPM drilling now, 40km along strike from $223M capped Rumble Resources
11-Apr-2022 $ 0.215 Why we invest in IPOs and our investment approach
26-Feb-2022 $ 0.240 The War Begins, Cybersecurity, Food Security, Energy Independence and Precious Metals
21-Feb-2022 $ 0.270 Why we invest in Oil & Gas and Precious Metals
16-Feb-2022 $ BPM Side-Bet: Nickel EM targets picked up in MLEM surveys - fast tracked AC drilling next week
05-Feb-2022 $ 0.270 The "Lesser Kown" Energy Transition Metals: Copper, Aluminium, Graphite, Helium, Rare Earths
04-Feb-2022 $ BPM’s Lead-Zinc Project Finally Granted - Now They Can Drill It
27-Nov-2021 $ 0.260 New COVID strain, Santa Rally, Market Thoughts
25-Oct-2021 $ 0.325 Lockdown lifts, Two stocks to watch: MNB and ONE
20-Oct-2021 $ 0.280 Three stocks to watch for the next few weeks
16-Oct-2021 $ 0.310 Mainstream media casts a big spotlight on Green Hydrogen
12-Oct-2021 $ BPM's Lead-Zinc Projects now Underway with Key Permits Secured
25-Sep-2021 $ 0.290 Managing a market crash - lessons from March 2020
20-Sep-2021 $ 0.300 ONE, VUL all grown up… BPM, LCL finding targets. PUR drilling again.
18-Sep-2021 $ 0.300 Why uranium stocks are soaring, one good movie recommendation
13-Sep-2021 $ 0.300 Quick fire commentary on the six stocks making progress today
07-Aug-2021 $ 0.340 Market swings back up as small caps scramble towards the end of the year
24-Jul-2021 $ 0.355 Why stocks go into "Quiet Execution Mode", how to spot a cap raise, stock "Confession Season"
10-Jul-2021 $ 0.385 Breaking News: Stellantis signs offtake MoU with VUL
03-Jul-2021 $ 0.430 End of Financial Year, and what happened to 88E's share price?
01-Jul-2021 $ 0.365 BPM’s Big Boots Bet Boosted by Bullish Baby Bets
05-Jun-2021 $ 0.470 What did our investmensts do this week? BPM, VN8, IVZ, and more...
03-Jun-2021 $ 0.485 BPM Completes Earaheedy Site Visit, Bigger Neighbour has released more drilling results
19-May-2021 $ Welcoming ASX: BPM to our Portfolio

Investor Presentation

Critical minerals quickly becoming a priority in the EU

Sep 20, 2022

Macro: Commodities

Readers who follow our Investment Portfolios will know that we have been making strategic Investments in commodities that have made critical minerals lists for the EU, USA, Japan, India and Australia.

These minerals are considered critical to the digitisation and decarbonisation macro thematic and include lithium, graphite, cobalt, nickel and PGE’s, to name a few.

Over the weekend, the following speech from the president of the European Commission, Ursula von der Leyen, gave a speech announcing that the EU would look to pass a “European Critical Minerals Act”.

The aim is to avoid the position Europe finds itself in with oil and gas, where it relies on a single trading partner like Russia.

The act would see the EU put in place:

  1. Agreements with partners like Chile, New Zealand, Mexico, India and Australia for the supply of critical minerals.
  2. Identification of strategic projects across all along the supply chain from mine sites to processing/refining projects.
  3. The act would also see the setting up of strategic reserves of these critical minerals.

All of this bodes well for our Investments across commodities identified as “critical minerals” giving these projects strategic importance on the world stage.

To see a list of all the critical minerals in the Australian Critical Minerals strategy document, check out the following link.

Here is a snippet from that speech:

Drilling underway at WA gold project

ASX:BPM Sep 19, 2022 Announcement

Investment Memo: BPM IM-2022
Objective 1: Side bets: Drilling at the company’s other projects.
Milestone 1: Drilling program at the Santy gold project

Drilling is now underway at our exploration Investment BPM Minerals’ (ASX:BPM) Santy Gold Project in WA.

The company reported that the 100-hole (totalling 3,500 metres) program has commenced and is expected to take three weeks to complete.

The program will comprise both RC and AC drilling with holes to be completed at both gold and base-metal targets.

RC drilling will target a 2.2km-long structural target from which BPM has previously returned 100g/t rock chips and where mineralisation remains open in all directions.

Historical exploration at BPM’s Santy project was targeting base-metal targets, nickel, cobalt and platinum group elements.

Our primary focus is the assay results that are pending from the Hawkins Project next door to Rumble Resources’ lead/zinc discovery.

This was one of the key reasons we first Invested in BPM back in May 2021.

At the moment, BPM has XRF readings confirming lead-zinc mineralisation at Hawkins across five key areas of interest from depths of only 40-100m.

Drilling samples have been sent to the assay labs, and upon receipt of final assays BPM expects to undertake follow-up exploration.

As a result, we had set our expectations as follows:

  • 🔄 Bull case = BPM proves there is enough potential to warrant follow up drilling works over the project.
  • ✅ Base case = Traces of lead-zinc mineralisation across the project area.
  • ❌ Bear case = No mineralisation and no planned follow up drilling programs.

Ground granted along strike $1.3BN Capricorn Metals.

ASX:BPM Sep 07, 2022 Announcement

Investment Memo: BPM IM-2022
Objective 1: Side bets: Drilling at the company’s other projects.
Milestone 1: Drilling program at the Claw gold project

This morning our exploration Investment BPM Minerals (ASX: BPM) confirmed that its exploration licenses at its Claw Gold project had been granted.

BPM’s gold project sits adjacent to Capricorn Metals (capped at $1.3BN) Mount Gibson gold project, where the company has a 2.1M ounce gold resource and is currently drilling less than ~1.5km away from BPM’s ground.

More importantly, BPM already has two high priority drill ready targets right near the southern border of the Capricorn Metals project.

  1. The Lewie anomaly - Covers an area measuring 1,200m x 400m
  2. The Chickie anomaly - Covers an area measuring ~1,000m x 500m.

We recently saw the following presentation from Capricorn Metals at the ‘Diggers and Dealers’ conference, where the management team laid out a masterplan for the project and the areas surrounding it.

As a sign of this intent, the company completed ~80,000m of drilling and then committed to over 20,000m more of drilling with a view of making a final investment decision on redeveloping the project by the end of the year.

Our view is that what’s good for Capricorn will be good for the look through valuation of BPM’s ground.

You can see that presentation here starting from 14:47 onwards:

Next for BPM’s gold project:

BPM will complete some geochemical sampling before putting together the highest priority drill targets for an RC/aircore drilling program at the project.

Noosa Mining Investor Conference round-up

Jul 22, 2022

Macro: Commodities

Spanning three days on the pristine Sunshine Coast of Queensland, the Noosa Mining Investor Conference kicked off its 12th year on Wednesday. Attracting a diverse and large spread of corporates, brokers, retail and institutional investors, this year’s event featured over 60 companies presenting and over 1,000 people in attendance, all hosted within the coastal town's Peppers Resort.

At the event, we caught up with a number of executives from our Investment companies (including AKN, AOU, BPM and PFE) as well as companies of interest, either as potential additions to one of our Portfolios, or to gain expert insight to macro and regional headwinds impacting the markets.

The conference is held in the ideal location to mix work with pleasure, and meet a host of CEOs of ASX juniors. Each day ends with a short ‘business at the bar’ session that quickly morphs into talking tactics about where to eat and drink. On Thursday and Friday nights, many head to the Noosa Surf Club for its networking sessions, enjoying its glassed indoor area and open deck to the beach.

We look forward to providing updates on companies we met with down the road.

China considering US$1.1 trillion infrastructure stimulus

Jul 15, 2022

Macro: Commodities

China plans to make up to US$1.1 trillion in financing available for infrastructure spending, which we think will increase commodity demand. Read the following Bloomberg article for details.

Read the full article here.

Below are our key takeaways:

  • China is making 7.2 trillion yuan ($1.1 trillion) in funds available for infrastructure spending.
  • According to Citigroup, infrastructure investment in 2022 is likely to rise by 7.7% versus 2021.
  • President Xi Jinping has called for an “all out” effort to increase infrastructure spending this year to fuel economic growth and meet a GDP growth target of around 5.5%.

The Bloomberg article touches on the impacts of China’s COVID induced lockdowns on the domestic economy.

With economic growth tipped to slow, the Chinese government is getting ready to lean on fiscal stimulus through infrastructure investment to spur economic growth.

We think this type of fiscal stimulus is likely to become a common theme in China and the West, with macro themes like decarbonisation requiring massive CAPEX.

This infrastructure spending forms part of our “commodities supercycle” investment thesis, where we see increased fiscal stimulus and CAPEX investment spurring higher demand for commodities already facing supply shortages.

China considering US$220Bn in infrastructure stimulus

Jul 08, 2022

Macro: Commodities

The following Bloomberg article highlights China’s plan to spend up to US$220 billion to spur economic growth through infrastructure spending.

All of this new infrastructure will require more commodities.

Read the full article here.

Below are our key takeaways:

  • China’s Ministry of Finance is considering US$220 billion of infrastructure funding aimed at shoring up the country’s beleaguered economy.

  • The funding is to be brought forward from next year’s quota, marking the first time the issuance has been brought forward due to concerns around the dire state of the world’s second largest economy.

  • The funding would primarily be used on infrastructure spending to boost an economy hit by Covid lockdowns and a housing downturn.

  • Commodities rallied in European trading hours following the news, with copper moving 3.6% higher on the London Metal Exchange.

For over two years, we have been writing about an upcoming commodities supercycle brought about by infrastructure spending, following decades of underinvestment in the “real economy”.

All this investment in the “real economy” requires raw materials, which is why we think the macro backdrop for commodities over the next decade is strong.

The Bloomberg article highlights the readiness of the Chinese government to lean on fiscal stimulus to spur economic growth at a time when the Chinese economy is slowing down.

Generally, governments would try to respond to slowdowns in economic growth by cutting interest rates. With this tool exhausted after the COVID pandemic, we think infrastructure spending will become the new policy of choice for governments worldwide.

Again, this infrastructure spending will increase demand for commodities which we expect will take commodity prices higher.

VW CEO breaks down batteries and supply chain issues

Jul 08, 2022

Macro: Commodities

The following Bloomberg article showcases the moves major carmaker Volkswagen is making in the batteries industry.

Read the full article here.

Below are our key takeaways:

  • VW is pressing forward with investments along its battery supply chain, commencing construction at a new cell factory in Salzgitter, Germany, one of five facilities in Europe under the carmaker’s PowerCo subsidiary.
  • Salzgitter is home to VW’s main motor factory, and it is where the company last year opened an $80 million facility to research, develop and test EV batteries.
  • Roughly $2 billion will be invested in the new cell factory, where production is scheduled to begin in 2025.
  • VW expects its battery business to generate €20 billion in revenue by the end of this decade.
  • VW CEO Herbert Diess said, “We are invested in some startups and we are looking forward to a joint venture together with Bosch for the machine tools and equipment for those plants, so we’re really gearing up to become one of the bigger battery cell producers”.

The news is just another sign that downstream investment in battery supply chains is showing no signs of slowing down.

VW is one of the world's largest carmakers and is heavily investing in downstream production capacity. It expects this part of its business to generate over €20 billion in revenues by the end of the decade.

This is a situation where investment in midstream/downstream (manufacturing/battery industry) is far ahead of upstream investment (mining), this leads to the supply/demand imbalances for the raw materials required to produce batteries only becoming worse.

The imbalance comes from the timing of these mega projects. Building a downstream / midstream facility could take 1-4 years whereas it takes around 7 years on average to bring a new resource discovery into the production stage.

As a result, we think that raw materials prices will remain high for at least the next decade whilst the mining industry catches up to demand.

Earaheedy basin drilling along strike from Rumble restarted

ASX:BPM Jun 22, 2022 Announcement

Investment Memo: BPM 2022

Key Objective #1: First lead-zinc drill holes in the Earaheedy Basin

This morning our exploration Investment BPM Minerals (ASX: BPM) announced that drilling at its Hawkins Project in the Earaheedy basin had been restarted after a brief pause due to unexpected extreme weather in the Pilbara.

The exploration program is for a total of ~7,500m of drilling comprising both aircore and RC drilling. This will mean BPM can drill with the aircore rig first and then follow up any interesting deeper prospective targets with the heavier RC rig concurrently.

The drilling program is being done approximately 40km to the northwest along strike from $168M capped Rumble Resources lead-zinc discovery.

To get a better idea of the context for BPM’s drilling program and to get our deep dive into what we what we think BPM are targeting, check out our last note on BPM here: $10M capped BPM drilling now, 40km along strike from $223M capped Rumble Resources

Assays received from nickel targeted drilling program

ASX:BPM Jun 07, 2022 Announcement

Investment Memo: BPM 2022

Key Objective #2: Drilling at the company’s other projects.

Today, our exploration Investment BPM Minerals (ASX: BPM) confirmed that all of the assays from its aircore drilling program at its Nepean nickel project had been received.

The assays come after BPM started a 42 hole (~1,887m) drilling program in late February of this year, which was designed to specifically test 11 different EM targets before ranking these for future follow up RC/Diamond drilling programs.

As expected BPM didn't make a new discovery here, but the confirmation of a western cluster of conductors that warrant drill testing with heavier drill rigs is a positive sign.

Whilst our focus with BPM is on the Hawkins Project we don't mind seeing small, cost effective drilling programs like this one to put together future exploration targets at BPM’s side bet projects.

Wet weather timetable in the Earaheedy Basin

ASX:BPM Jun 07, 2022 Announcement

Investment Memo: BPM 2022

Key Objective #1: First lead-zinc drill holes in the Earaheedy Basin

This morning our exploration Investment BPM Minerals (ASX: BPM) announced that drilling at its Hawkins Project in the Earaheedy basin had been paused due to “Unseasonal and record rainfall in the Pilbara”.

BPM confirmed that the drill rig is still on site and the entire drilling program will start back up as soon as it is completely safe to be back on site.

The program is for a total of ~7,500m of drilling comprising both Aircore and RC drilling. This will mean BPM can drill with the aircore rig first and then follow up any interesting deeper prospective targets with the heavier RC rig concurrently.

To get a better idea of the context for this round of drilling and for a deeper dive into what we are looking for check out our last note on BPM here: $10M capped BPM drilling now, 40km along strike from $223M capped Rumble Resources

Zinc price going ballistic, great time to drill

ASX:BPM Apr 13, 2022

Our exploration investment, BPM Minerals (ASX:BPM), is getting mighty close to drilling its main project in the Earaheedy basin.

The zinc market is currently straining under the pressure of high prices:

Drilling at the Hawkins project is scheduled to begin in “mid-April” and BPM is looking to find a lead-zinc deposit similar to Rumble’s Chinook discovery.

It’s been a long time coming, but as investors we are excited to see what BPM might turn up.

Importantly. BPM will be using a portable X-Ray Fluorescence (XRF) Analyser which will give them much needed optionality in their 7,500m AC/RC drill program.

If the XRF picks up anomalies in the drill cores, BPM will be able to respond immediately with infill and deeper RC drilling.

Should BPM produce good lead-zinc grades, we think that they will be well received by the market.

This particular Reuters article caught our attention recently:

Key takeaways:

  • A raid on LME zinc stocks has seen available tonnage fall to two-year lows
  • The exchange's European warehouses hold just 500 tonnes and the US just 550 tonnes
  • Could replicate what happened with the nickel contract in March if upwards price pressure continues

Here is why we invested in BPM and what we expect them to achieve in 2022 - BPM Investment Memo.

$3M cash raised ahead of Hawkins drilling

ASX:BPM Apr 05, 2022 Announcement

This morning BPM came out of a trading halt having raised $3M via a well supported placement @21c per share to leading domestic institutional investors and high-net-worth investors. The placement also came with 1 free option that will be exercisable @28c with a two year expiry.

We like that the funds have been earmarked to drive “aggressive exploration” at the Hawkins lead-zinc Project, at which BPM has planned a 7,500m Air Core/Reverse Circulation drilling program later this month.

The shares from the capital raise will be issued as follows:

  1. $2.6M of the shares issued on 11 April.
  2. $400k of the shares + the options issued after shareholder approvals in May.

In our 2022 Investment Memo, we mentioned that the Hawkins Project which sits along strike Rumble Resources’ lead/zinc discovery in the Earaheedy Basin. We are primarily invested in BPM to see it attempt to replicate the success of Rumble in this part of WA.

The placement follows an announcement a few weeks ago, that BPM is moving forward with the 7,500 metre Aircore/RC drilling program that’s planned for mid-April.

As you can see, this drilling program was the primary objective that we wanted to see BPM achieve this year.

What’s next: we’ll be looking for confirmation that the drilling program has begun, ahead of any updates on drilling progress/results.

To see why we think the Hawkins Project is BPM’s best drilling prospect check out our previous note on BPM here.

Aircore drilling in the Earaheedy near Rumble Resources

ASX:BPM Mar 28, 2022 Announcement

BPM today confirmed that it will commence a first pass aircore drilling program at the Hawkins Earaheedy Project in mid-April. It also said that ~1,887m of aircore drilling has now been completed at the Nepean Nickel Project.

The main reason for our investment in BPM was to see it drill the Hawkins Project, which sits next door to $257M capped Rumble Resources’ Chinook discovery in the Earaheedy basin.

The Hawkins drilling program will comprise ~7,500m of aircore drilling to identify higher priority targets that can be followed up with RC/diamond drilling. Essentially, this drilling program is more about ranking follow up drill targets and less about actually making a new discovery.

Drilling will be done over the blue lines on the map below. We are particularly interested in seeing if BPM can prove up drill targets near the “Pinnacles” prospect and around the deep EM targets that sit right near the two major fault lines in the area.

BPM also confirmed today that it has completed ~1,887m of aircore drilling at the Nepean Nickel Project. Results are expected in the next 10-12 weeks. We wrote about these targets in our last note which you can read here.

As we noted above, our main reason for investing in BPM was its lead-zinc drilling at its Hawkins Project, so we are less focused on these nickel results, but if anything were to come from them it would be a pleasant surprise.

To see all of the reasons why we hold BPM and what we want to see the company achieve in 2022 check out our 2022 Investment Memo here.

Next, we will be watching to see drill rigs mobilise on site at the Hawkins project.

Heritage surveys ongoing at the Hawkins zinc/lead project

ASX:BPM Mar 16, 2022

Yesterday, BPM announced that heritage surveys had commenced across its Hawkins zinc/lead project in the Earaheedy basin in preparation for the 7,500-metre air core drilling program, scheduled for ~early April.

We are not expecting BPM to make a discovery with the air core drilling program but instead want to see the company throw up enough follow-up drill targets to warrant deeper RC/diamond drilling later in the year.

In our 2022 Investment Memo, we highlighted that the Hawkins project was the main reason we continue to hold BPM in our portfolio, With the project sitting ~40km away from Rumble Resources (capped at $269M) Chinook discovery.

It has been a long time coming for the Hawkins project but today’s announcement is the final step before BPM can start to tackle objective #1 from our 2022 Investment Memo and begin exploration works across the project.

Drilling commenced at nickel targets

ASX:BPM Feb 23, 2022

Last week we put out a note on BPM’s Nickel targets identified next door to our other portfolio company Auroch Minerals nickel project.

Today BPM announced that drilling had commenced across the 11 identified EM conductors. To read more about these 11 targets, read our last note here.

The 3,000m of Aircore drilling is expected to take a few weeks and we don't anticipate any assays coming in for at least another 4-6 weeks after that.