Key Highlights

• BMC's updated 2026 feasibility study puts an after-tax NPV of US$1.7 billion.

• The project is Kudz Ze Kayah in Yukon, Canada.

• The study uses consensus forecasts from June 2026.

• The silver price assumption is a major driver of the value.

BMC Minerals (ASX:BMC) has put an after-tax net present value of US$1.7 billion, in its updated 2026 feasibility study for the Kudz Ze Kayah project in Yukon, Canada, on a silver, zinc, gold and copper mine that is not yet funded or fully permitted.

What investors hold

BMC securities trade on the ASX as CHESS Depositary Interests, or CDIs. These are Australian-traded instruments that give holders the economic benefit of the underlying shares in the company, which operates in Canada. ASX classes BMC in the materials sector, and its about page lists inclusion in the S&P/ASX All Ordinaries index.

The company listed in December 2025 following a prospectus dated 10 November 2025.

The study

The study, released on 2 November 2026, covers the ABM deposit at Kudz Ze Kayah in the Finlayson Lake district. It describes a mine of about nine years, processing 2.0 million tonnes of ore a year, with 89 per cent of reserves in open pit and 11 per cent underground from year three.

Steady-state output is about 22 million ounces of silver equivalent a year, including 7.9 million ounces of silver, 58,000 ounces of gold, about 109,000 tonnes of zinc, 14,000 tonnes of copper and 25,000 tonnes of lead.

At a 5 per cent real discount rate, the study shows a pre-tax NPV of US$2.64 billion and an after-tax NPV of US$1.70 billion. After-tax internal rate of return is 54.0 per cent, with payback 1.4 years after processing starts. Life-of-mine EBITDA is about US$4.58 billion.

Pre-production Capital is US$665 million including 20 per cent contingency, excluding US$90 million of lease-financed equipment. Sustaining capital is US$245 million. All-In Sustaining Cost is US$20.47 per payable silver-equivalent ounce.

Context matters. The study uses consensus forecasts from June 2026, including a long-term silver price of US$50.80 an ounce, against US$22.60 in the earlier prospectus assessment. BMC says reserves, mine plan and physical production are unchanged, so much of the uplift appears to reflect prices and costs rebased to 2026. The ore reserve is classed as probable, not proved.

Permits and funding

A decision document was received on 10 April 2026 and a Type B water licence on 21 July 2026. The Quartz Mining Licence and Type A water licence are pending, and the company expects 12 to 18 months from the decision document.

BMC targets a final Investment decision in late 2027, alongside financing and permitting. It plans a mix of equity, Debt and other Capital Markets solutions, and warns funding is uncertain and may be dilutive. For a US$665 million build, that is the central hurdle.

The September 2026 Quarterly Report showed cash of US$41.8 million, down from US$50.3 million at 30 June, after net operating outflows of US$8.6 million.

Exploration and ownership

About 19,000 metres of a planned 20,000-metre 2026 diamond drilling programme was complete at the time of the quarterly report. At Rhyolite Peak, assays from the first nine of fifteen holes returned significant mineralisation, with thicknesses of about 2.3 to 7.2 metres, and the zone remains open.

In early July 2026, major Shareholder BMC (UK) No.1 sold 29,534,808 CDIs at A$2.85 each, about 10.8 per cent of issued capital. It retains 53.9 per cent, subject to Escrow periods of 12, 18 and 24 months, so future sales or their expiry could affect Supply of CDIs.

Risks and next steps

Principal risks are metal prices, particularly silver, capital cost inflation, outstanding permits, financing and the cost of a remote Yukon build. The study excludes inferred resources, which keeps the Economics conservative on that point.

Next steps include the remaining Rhyolite Peak assays, updated technical studies targeted for later in 2027 and the permitting timetable.