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BHP’s (ASX:BHP) private sector answer to state exploration incentive schemes, the Xplor program, includes Firetail Resources (ASX:FTL) for 2025.
The market liked what it heard on Monday morning and shares in the <$20M capped company jumped 5.3%, to 6cps.
However, this was contextualised against the backdrops of considerable illiquidity on Monday, an issue Firetail has been dealing with. As of early Monday, 4W average volumes are around 130,000 shares trading hands per day, according to a third-party service that ports Morningstar data.
At any rate, BHP will now effectively help support exploration activities at Firetail’s Peru-based Picha copper project, to the tune of A$800M.
The company’s choice of jurisdiction may be an influential factor in BHP’s decision.
The Peruvian resources sector has been of interest to some Western nations in recent history, evidenced by an MOU between Peru and the U.S. ahead of a mining conference in October 2024. Peru has also slowly been touching up its environmental compliance procedures in recent history.
Maybe (or maybe not) more pertinently, Peru is also a leading exporter of copper after China; against the geopolitical backdrop of our current moment, the rationale for broad interest in the South American country is obvious. So too that of BHP’s.
‘We have always sought to operate at the cutting edge of exploration practices and it’s pleasing to be recognised for our approach by BHP Xplor, a clear industry leader,” Firetail MD Glenn Poole said, spruiking the big Aussie’s very own EIS-style program.
BHP Xplor head Marley Palin, meanwhile, pointed to the hurdles Firetail had to jump to be considered.
“Successful applicants had to demonstrate not only that their critical-mineral projects were highly prospective but also that they were committed to pushing industry boundaries in their geological concepts and data-gathering, testing and processing to realise the project,” Palin put it to punters on Monday.
“Firetail and their Picha Project more than met these criteria and we look forward to partnering with them.”
FTL last traded at 6cps.
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