Why the BBX share price has rocketed 93% this month

The BBX share price has been on a stellar run since the start of September, we take a look at what's driving this phenomenal increase.

| More on:
miniature rocket breaking out of golden egg representing rocketing share price

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The BBX Minerals Ltd (ASX: BBX) share price was trading 35% higher this morning before the company entered into a trading halt. Here we explore what has been driving the amazing growth of the BBX share price this month.

What BBX does?

BBX is a mineral exploration and mining company listed on the Australian Securities Exchange. The company's major focus is Brazil, mainly in the southern Amazon. It is a region BBX believes is vastly underexplored with high potential for the discovery of world-class gold and copper deposits.

The company's principal focus is on developing a proprietary, transferable precious metals extraction process applicable to its Brazilian exploits. This unique and new hydrometallurgical extraction process is being developed by BBX Minerals using its own staff combined with a group of international experts bringing over 100 years of combined knowledge.

Once the development of this proprietary process is completed and verified through a planned metallurgical test plant, BBX will be able to efficiently extract the precious metals from its Brazilian deposits.

Market update

In early September, the BBX share price exploded as the company released a market update. The BBX share price has surged 92.86% since the update.

BBX announced consistent and repeatable analytical test results in regards to its assay method. Furthermore, the test results were obtained from the highly-regarded São Paulo State Research Institute.

Moreover, the company plans to adopt this assay method, exclusive to BBX, for future assaying of surface and drill-hole samples from both Ema and Três Estados.

To this tune, it was also announced that BBX has signed a contract for a 2500m diamond drill program with Canadian drilling contractor Energold Drilling Corp. The program, scheduled to commence at the end of September, comprises a total of 50 drill holes with an average depth of 50 meters, at both Ema and Três Estados. The holes are designed to infill, extend the previously drill-tested areas and conduct reconnaissance drilling.

What now for the BBX share price?

This is very positive news for the mining company as it provides it with the impetus to continue with the project in Brazil.

Commenting on the news, CEO Andre Douchane said:

On behalf of the BBX team I'm very pleased that Sao Paulo State Research Institute, an independent ISO-certified research and testing institute was able to refine and statistically certify an assay method for our mineralisation. This method allows BBX to begin assaying past drill holes and to begin building a resource model. Additionally, as this phase of our research comes to fruition we can now devote all of our time towards finalising our preferred hydrometallurgical extraction process.

Nonetheless, at the time of writing, the BBX share price won't be going anywhere. The company has been issued a speeding ticket and is expected to resume trading by 22 September at the latest.

Motley Fool contributor Daniel Ewing has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Share Market News

Two smiling work colleagues discuss an investment or business plan at their office.
Broker Notes

Which beaten down ASX 200 share did Goldman Sachs just upgrade to a buy rating?

The broker has become more bullish on this stock following last week's update.

Read more »

Hand holding Australian dollar (AUD) bills, symbolising ex dividend day. Passive income.
Best Shares

The best ASX shares to invest $1,000 in right now

Analysts think that putting your money into these stocks could be a smart move.

Read more »

green etf represented by letters E,T and F sitting on green grass
Share Market News

4 ASX ETFs to buy for FY25 and beyond

Could these ETFs be top options for investors looking for long term picks?

Read more »

A smiling woman sips coffee at a cafe ready to learn about ASX investing concepts.
Opinions

How I'd invest $10,000 in ASX shares right now

I’m bullish about the prospects of these stocks.

Read more »

A fortune teller looks into a crystal ball in an office surrounded by business people.
Share Market News

What's the outlook for shares vs. property in FY25?

Generally speaking, there is optimism among the experts for both shares and property in FY25.

Read more »

Happy shareholders clap and smile as they listen to a company earnings report.
Best Shares

Top ASX shares to buy before earnings season

It's almost time to take a look at the books!

Read more »

sad party goer sitting alone after celebration
Share Market News

Here are the top 10 ASX 200 shares today

The ASX 200 had a horrible end to its trading week this Friday.

Read more »

A young female investor sits in her home office looking at her ipad and smiling as she sees the QBE share price rising
Broker Notes

3 ASX shares brokers tip for significant outperformance in FY 2025

Leading brokers expect some significant outperformance from these three ASX shares.

Read more »