BMC Minerals ASX IPO: Kudz Ze Kayah capex and mine plan notes for engineers
Reviewed by Joe Ashwell

First reported on MINING.com
30 Second Briefing
BMC Minerals raised A$100 million in an oversubscribed IPO and debuted on the ASX at A$2.00 per CDI, closing 25% higher at A$2.50 for a market capitalisation of about A$550 million. Funds will advance the 100%-owned Kudz Ze Kayah polymetallic project in Yukon, where the 372 km² package hosts ABM and Kona deposits with over 20 Mt indicated, including 200,000 t copper, 1.15 Mt zinc and 87 Moz silver. A 2020 feasibility study for ABM outlines a nine-year mine, US$492 million initial capex and 32.2 Moz silver-equivalent per year, with 95% of first five years’ concentrate output under offtake.
Technical Brief
- Updated 2020 feasibility for ABM assumes a 9‑year mine life and 7% discount rate NPV.
- After-tax NPV is quoted at US$835 million using relatively conservative gold and silver price decks.
- ABM is planned to produce three concentrate streams: silver/gold, copper and zinc concentrates.
- Binding offtake contracts already secure about 95% of concentrate production for the first five operating years.
- YESAB identified potential adverse impacts on caribou, water systems and traditional land use, imposing conditions for approval.
- Kudz Ze Kayah tenure covers 372 km² and includes two defined deposits, ABM and Kona.
- Combined indicated resources exceed 20 Mt containing 200 kt Cu, 450 kt Pb, 1.15 Mt Zn, 890 koz Au and 87 Moz Ag.
- BMC plans early‑stage drilling on several high‑priority exploration targets to test underexplored parts of the licence.
Our Take
With an after-tax NPV of US$835 million against initial capex of US$492 million, Kudz Ze Kayah sits in the upper tier of Yukon polymetallic projects in our database on NPV-to-capex ratio, which should help BMC Minerals defend the A$550 million market capitalisation implied on ASX debut.
The 372 km² land package and the presence of both ABM and Kona deposits mean the current nine-year mine life at Kudz Ze Kayah is likely a base case; in our coverage of Yukon projects, similar VMS-style camps often see incremental discoveries extend life materially once construction capital is committed.
Among the 290 Mining stories and 596 tag-matched ‘Projects’/‘Contract Award’ pieces in our database, relatively few feature zinc-dominant polymetallic assets with such large silver credits in Canada, suggesting Kudz Ze Kayah could become a reference project for Yukon permitting and financing pathways, especially given its YESAB history and the recent British Columbia court determination noted in the metrics.
Prepared by collating external sources, AI-assisted tools, and Geomechanics.io’s proprietary mining database, then reviewed for technical accuracy & edited by our geotechnical team.
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