Reporting season is in full swing for the big players. This is the time of year when producers report to us how much they made or lost in the previous financial year.
It’s not just busy at the big end of town either; we’re seeing plenty of action across the small-caps, too. Drilling updates, shifting government policies, and some significant financial headlines dominated the week, with exploration momentum remaining strong across the market.
This week’s highlights:
- FMR Resources prepares to drill one of the world’s last great undrilled copper porphyries
- Asian Battery Metals hits sulphides exactly where the geophysics predicted
- KoBold Metals secures lithium licences in the DRC, but what about AVZ?
- Burkina Faso wants a bigger slice of West African Resources’ gold project
- Mineral Resources posts $896m loss, with asset sales on the horizon
FMR Resources: Testing One of 2025’s Biggest Copper Targets
FMR Resources (ASX: FMR) is now just weeks away from answering a question that’s been keeping some copper bulls awake at night: what lies beneath Southern Porphyry?
The company’s maiden 4,000-metre drill program will test four targets in Chile that have lit up every exploration technique thrown at them. Geophysics, soil sampling, structural modelling – they’re all pointing to something substantial potentially sitting below surface.
Copper’s structural deficit story keeps getting louder as AI data centres and renewables suck up every bit of supply they can find. A discovery here would land in a market desperate for new supply.
A strong team led by MD Oliver Kiddie and non-executive director Justin Werner, backed by billionaire Mark Creasy, is well-positioned to take this from target all the way through to production if drilling is successful.
This is early-stage, high-risk exploration at its purest. But that’s where the big wins come from.
ASX Explorer AZ9 Hits Sulphides in Mongolia Copper Hunt
Asian Battery Metals (ASX: AZ9) continues to prove that good geology and systematic exploration still work. Friday’s update from the Oval discovery showed Phase 3 drilling hitting thick sulphide mineralisation right where the electromagnetic surveys said it would be.
That accuracy strengthens the company’s thesis that its targeting model works. Results are pending and will be released in the coming weeks.
The company’s approach feels familiar because we’ve seen it before. Sirius Resources followed a similar playbook back in 2012, methodically working through targets until they hit Nova-Bollinger. That story ended with a $1.8 billion takeover.
Phase 4 preparations are already underway for MS1, MS2, Quartz Hill and Bayan Sair. They sit in the same geological corridor and are all showing those same EM signatures that have been paying off at Oval.
If AZ9 can unlock a district-scale copper system, it could become one of the most exciting small-cap plays on the ASX.
KoBold Enters DRC Lithium Race as AVZ Dispute Drags On
The Bill Gates and Jeff Bezos-backed KoBold Metals made its move into the DRC this week, securing lithium exploration rights near the Manono project.
For AVZ Minerals’ shareholders who’ve been sweating bullets about their trapped investment, this actually looks like positive news.
The fear was always that KoBold might try to muscle in on AVZ’s permits while the company remains locked in its government dispute over the world’s largest hard-rock lithium asset.
Instead, KoBold made it clear they want the AVZ situation resolved before any serious development happens.
This is encouraging news for AVZ shareholders as it signals that KoBold, despite its size and backing, isn’t looking to exploit AVZ’s legal standoff or its historically strong relationships in-country.
In the DRC, where government relationships and historical claims matter more than most places, this suggests AVZ’s strategic value remains intact.
For shareholders who’ve been locked up since 2022, it’s a rare piece of encouragement in what’s been a brutal waiting game.
Burkina Faso Government Demands Bigger Gold Project Stake
When will West African governments stop trying to exploit companies that spend millions exploring and developing mines in their countries?
West African Resources (ASX: WAF) became the latest victim of the region’s deteriorating investment climate on Thursday, entering a trading halt after Burkina Faso demanded a bigger piece of its Kiaka Gold Project.
The government wants to jump from 15% to 35% ownership and receive a corresponding percentage of the profits for minimal development cost. It’s a considerable increase that has a material impact on WAF’s operational ability.
It’s becoming a pattern after Mali seized a Barrick Gold mine earlier this year, Leo Lithium was forced to hand over a big chunk of its project to keep operating, and now Burkina Faso wants its turn at the trough.
West African governments appear to have figured out they can squeeze foreign miners after the hard work’s been done. They’re betting companies will accept worse terms rather than walk away from sunk costs.
These jurisdictions might host world-class deposits, but when governments can rewrite the rules at will, even the best geology becomes nearly impossible to invest in.
Mineral Resources Posts $896m Loss and Hints at Asset Sales to Cut Debt
Mineral Resources (ASX: MIN) laid bare the cost of aggressive expansion in a falling lithium market this week: an $896 million loss and a debt pile that’s climbed to $5.3 billion.
The company’s operating cash flow fell to –$475 million, meaning it spent more cash running its core business than it generated during the year. A decline in lithium earnings and increased capital expenditure contributed to this shortfall.
MIN management alluded to a sale of non-core assets to restore financial flexibility. The company is likely to sell smaller or lower-return projects to reduce debt and focus on flagship high-margin assets.
MIN is in a tight spot; they’ve always backed themselves, and this will either be their greatest achievement or the undoing of a major player in the Australian mining industry. Weak lithium prices are real, and sentiment has shifted long-term towards iron ore.
The market seemed to think they’ll pull through – the share price finished up 1.5% for the week. Sometimes investors see opportunity where others see disaster.
ASX Small-Cap Exploration Drives Market Momentum
Markets have a bit of a pulse about them at the moment, and we’re encouraged by the substantial volume of exploration underway. Volumes in the small-cap end are decent and plenty of eyes are glued to the drill campaigns.
Sovereign risk and balance sheet stress are still hanging over parts of the sector, but the drills keep turning. AZ9 and FMR are lining up big swings, and the flow of results into year-end should keep things interesting.
For all the noise in the market – billion-dollar losses, African governments shifting the goalposts, boardroom stress – the rigs are still spinning. That tells you everything. Investors back the drill bit because the next discovery can make all the turbulence fade into background chatter.
Here’s hoping.
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