BPM is capped at just $5.3M trading with an enterprise value close to ~$2M at the moment. We think BPM’s valuation here is leveraged to exploration success.
$0.092
Opened: 21-Aug-2025
Shares Held at Open: 4,335,000
Options Held at Open: 850,000
What does BPM do?
BPM is a junior exploration company with an option to acquire a gold project in the same region as the 8 million ounce Tropicana gold project.
What is the macro theme?
WA remains one of the world’s hottest gold exploration spots, underpinned by tier-1 geology and previous discoveries (like the 8 million ounce Tropicana discovery).
Investors understand WA gold and many have made money from company-making discoveries in the region.
Our Big Bet for BPM
“BPM discovers and defines a large resource, leading to a long term re-rate in the company’s share price by >1,000%”
NOTE: our “Big Bet” is what we HOPE the ultimate success scenario looks like for this particular Investment over the long term (3+ years). There is no guarantee that our Big Bet will ever come true. There is a lot of work to be done, many risks involved, including development risk, country risk and commodity price risk - just some of which we list in our BPM Investment Memo.
Success will require a significant amount of luck. Past performance is not an indicator of future performance.
Why did we invest in BPM?
Tiny market cap, leveraged to exploration success
BPM is capped at just $5.3M trading with an enterprise value close to ~$2M at the moment. We think BPM’s valuation here is leveraged to exploration success.
BPM’s new gold project sits on similar geology to the 8 million ounce Tropicana discovery.
The current owners of Tropicana once held BPM’s ground
AngloGold Ashanti (who discovered Tropicana) drilled BPM’s ground looking for Tropicana 2.0 back in the early 2000s.
BPM first company to do modern exploration over the project
Anglo eventually pivoted back to near-mine exploration when the gold price fell, leaving this area untouched since ~2009. BPM will be the first to do modern exploration here
Large land package, regional scale
BPM’s land package covers 630km^2 of ground which means that if a discovery is made, it will have the defensible land position to drill it out.
Previous hits found visible gold
Anglo hit visible gold in some of its drilling including a 9.7m of gold at 4.5g/t hit. None of this has been followed up yet.
BPM’s project is close to existing infrastructure
BPM’s new asset is within 200km of ~ three operating mills which will make it easier for BPM to develop any discovery it makes. It could also mean any big discovery attracts corporate interest…
Incoming project vendor team have made discoveries before
Project vendors Dr. Ross Chandler and Luke Blais joined BPM as technical advisor and exploration manager respectively. Both were part of the Dreadnought Resources team which made the Yin rare earths discovery back in 2021-2022 (Dreadnought was capped at ~$440M post-discovery). The two also received AMEC’s 2023 Prospector Award for their role in that discovery.
What do we expect BPM to deliver?
Objective #1: Drilling at Gold Project
We want to see BPM sign heritage agreements and receive final drilling approvals for its first drill program. Here we want to see BPM follow up (and hopefully) extend the gold mineralisation found at Beachcomber. This was where Anglo hit 9.7m at 4.5g/t gold
Milestones
Heritage Agreement
Heritage Survey
Drilling permits
Drilling starts
Drilling results (final assays)
Objective #2: Maiden resource estimate at Gold Project
Once drilling is complete we want to see BPM announce a maiden resource on the Beachcomber target area.
Milestones
Maiden resource estimate
Objective #3: Target generation on regional targets
We want to see BPM run sampling/surveying programs and high priority regional targets.
Milestones
Geochemical sampling (soils, trenching)
Geophysical surveys
Identify drill targets
Objective #4: Drill regional targets
Finally, we want to see BPM drill its highest priority regional target (and hopefully make a new discovery).
Milestones
Licenses to be granted.
Drilling permits
Drilling starts
Drilling results
Objective #5: Decide on option on rare earths project
BPM also has an option on a rare earths project in WA
Milestones
Exploration permits granted
Decision on rare earths option
What could go wrong?
Exploration risk
BPM is still a long way from a discovery, and even further from defining a resource.
Just because AngloGold drilled a few holes back in the day, it doesn’t guarantee BPM will hit anything significant in its follow-up drilling.
BPM is an early-stage exploration company, and could come up empty-handed.
Heritage delay/permitting
BPM has given guidance for its first drill program to start in Q3-2025.
Given we are more than half way through the quarter and BPM hasn’t received any heritage clearance as yet, there is always a chance that the timelines for the initial program are delayed.
Significant delays could be negative for BPM’s share price as it would burn down the company’s cash balance and bring the company to a position where it needs to raise more capital and dilute existing shareholders.
Deal risk
BPM has picked up the project under a 12 -month option, which means there are still a few hurdles to clear before it formally owns the asset.
There’s also always a chance that BPM walks away after the 12 months if the drilling doesn’t deliver, which would mean time and cash spent on a project that BPM may choose not to advance.
Funding risk/dilution risk
As a pre revenue explorer BPM is dependent on capital markets to fund ongoing drilling and development.
That could come at discounted prices and further dilute existing shareholders.
Commodity price risk
The performance of commodity stocks are often closely linked to the value of the underlying commodities they are seeking to extract. Should gold prices fall, this could hurt the BPM share price.
Market risk
Broader market sentiment could deteriorate, and shares as an investment class trade lower, taking BPM’s share price with it. Alternatively, there could be further sector specific pain ahead where junior explorers suffer a lot more than the broader market.
What is our investment plan?
We are Invested in BPM to make a discovery and define a gold discovery.
Our plan is to hold the majority of our position in BPM into the upcoming drilling program.
We may look to sell up to 20% of our holding if the company delivers on one or more of our Investment Memo objectives and/or the share price materially re-rates in line with our minimum hold conditions.
Disclosure: Disclosure: S3 Consortium Pty Ltd (the Company) and Associated Entities own 4,335,000 BPM Shares and 850,000 BPM Options at the time of publishing this Investment Memo. The Company has been engaged by BPM to share our commentary on the progress of our Investment in BPM over time. This information is general in nature about a speculative investment and does not constitute personal advice. It does not consider your objectives, financial situation, or needs.
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 discovers and defines a large resource, leading to a long term re-rate in the company’s share price by >1,000%”
NOTE: our “Big Bet” is what we HOPE the ultimate success scenario looks like for this particular Investment over the long term (3+ years). There is no guarantee that our Big Bet will ever come true. There is a lot of work to be done, many risks involved, including development risk, country risk and commodity price risk - just some of which we list in our BPM Investment Memo.
Success will require a significant amount of luck. Past performance is not an indicator of future performance.
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: Creeping up on rumours of WA gold M&A nearby?
Aug 21, 2025
Aug 21, 2025 |
17 min
Why has the $5.3M capped BPM Minerals (ASX: BPM) share price been edging up every day over the last 7 trading days? Hard to say…but it might be because of this: Back in early July, BPM acquired an option on a gold exploration project to the south of the 8M+ ounce Tropicana gold deposit in WA… (and BPM reckons they will be drilling it next month)
BPM: Drilling completed at Claw. Gold results due in a few weeks.
Dec 17, 2024
Dec 17, 2024 |
7 min
In September, our micro cap gold explorer BPM Minerals (ASX: BPM) made a new gold discovery in WA. BPM has just finished this deeper drilling - 6 RC holes. …and gold assay results are due in the coming weeks.
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.
BPM signs heritage agreement on WA gold project.
Sep 15, 2025
Sep 15, 2025 |
3 min
Our micro cap exploration Investment BPM Minerals (ASX: BPM) just signed a heritage agreement on its WA gold project.
BPM sells claw gold project for A$1.5M to Capricorn Metals
Jul 9, 2025
Jul 9, 2025 |
3 min
Today, our microcap gold exploration Investment, BPM Minerals (ASX: BPM) sold its Claw Gold project in WA to $4.1BN capped Capricorn Metals.
BPM acquires new WA Gold project
Jul 7, 2025
Jul 7, 2025 |
3 min
Our micro cap exploration Investment BPM Minerals (ASX: BPM) just announced the acquisition of an option to acquire a new gold project in WA.
BPM releases results from Claw gold project, flags potential new project acquisition
Apr 17, 2025
Apr 17, 2025 |
1 min
Our gold Investment, BPM Minerals (ASX: BPM) has announced results from its recent drilling program at the Claw Gold Project.
BPM - Drilling next door to $3.5BN Capricorn Metals complete, assays pending
Mar 20, 2025
Mar 20, 2025 |
1 min
Our gold exploration Investment BPM Minerals (ASX: BPM) just finished it’s latest aircore drill program on its project to the south of Capricorn Metals.
Gold Hits All-Time High, Silver Breaks Out, Is This the Big Run?
Sep 6, 2025
Sep 6, 2025 |
11 min
It’s very hard not to write about gold and silver yet again this week. Last weekend we said we’d be delighted if silver could touch US$40/oz during the week… Well, silver soared through US$40/oz on Monday and later in the week hit a new 14 year high of US$41.40/oz. Meanwhile gold hit a new all time high of US$3,598/oz last night.
Gold, Silver, Critical Metals… and Now Oil & Gas? The 2025 Small Cap Rally Heats Up
Aug 30, 2025
Aug 30, 2025 |
14 min
It’s starting to feel like the early beginnings of the 2020 bull market… It’s now week 8 of a buoyant mood in small ASX stocks. Most stocks are going up. Even 2020 “bull market darling” IVZ burst out of a long hibernation in spectacular fashion this week. IVZ was up over 300% in two days on extraordinary trading volumes…
Sunday Edition: 24th August
Aug 24, 2025
Aug 24, 2025 |
23 min
Monday looks set to be an interesting day on the markets with the US Federal Reserve indicating an interest rate cut is on the horizon. Both gold and silver prices have been up since Fed Chair Jerome Powell's speech on Friday night… and we will be eagerly anticipating how our gold and silver Investments will trade tomorrow.
Silver, Gold and US Critical Metals Macro Themes
Aug 9, 2025
Aug 9, 2025 |
14 min
We are now in week 6 of the small cap market being “back”… (we called it in June, finally got one right…hopefully it keeps going?) We always said the small cap market needed a strong macro theme to bring it back to life. To bring the sidelined investors back from years of hibernation.
Sunday Edition: 13th July
Jul 13, 2025
Jul 13, 2025 |
18 min
Here in our “Sunday Edition”, we send you a quick summary of what we wrote, read, and watched during the week. While we didn’t get the interest rate cut we were hoping for, and a few global trade deals are taking longer than the expected deadline, the small end of the market was still feeling pretty buoyant this week…
