Brockman Mining (ASX:BCK) share price rockets 240% today

If you're looking for today's biggest mover, you're probably eyeing the Brockman Mining Ltd (ASX: BCK) share price. Its going bonkers today!

| More on:
A miner reacts to a positive company report mobile phone representing rising iron ore 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

sdf

If you're looking for today's biggest mover, you'll probably be eyeing Brockman Mining Ltd (ASX: BCK) shares.

At its highest point today, the Brockman Mining share price had rocketed 361% higher than yesterday's closing price.

At the time of writing, shares in the company are trading at 8.8 cents, representing a still mammoth 238% gain. 

What's lit the fire under the Brockman Mining share price? Let's take a look.

Farm-in and joint venture agreement

Today, Brockman Mining announced its farm-in and joint venture agreement with Mineral Resources Ltd (ASX: MIN) has come to fruition.

The deal was first announced in 2018, but today's news is that the companies are finally signing the joint venture portion of the agreement. 

The deal is between subsidiaries of both companies. Brockman's Brockman Iron and Mineral Resources' Polaris are representing their ASX-listed parent companies.

Originally, the deal would have seen Polaris securing 50% of Brockman's Marillana Iron Ore Project. Today, it's been updated to also include Brockman's Ophthalmia Project.

Under the agreement's terms, Polaris began a farm-in venture at Brockman's Marillana Iron Ore Project. Once Polaris had met its farm-in obligations, the companies would form a joint venture, each owning half of the Marillana Project.

The farm-in agreement's obligations include Polaris providing Brockman with a $10 million loan, spending $250,000 to explore and develop Marillana, and completing a mine site plan.

There's also an agreement that another subsidiary of Mineral Resources would pay for and build a rail and port system from the project to Port Hedland ­– a distance of around 270 kilometres.

According to Mineral Resources, the project will mine iron ore to be sold in China.

Brockman Mining share price snapshot

The company is dual-listed on both the ASX and the Hong Kong Stock Exchange and, while it's prone to volatility, today's moves are next level.

Currently, the Brockman Mining share price is up by around 47% year to date. It's also up by 340% over the last 12 months.

The company has a market capitalisation of around $241 million, with approximately 9.2 billion shares outstanding.

Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned.

The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Resources Shares

A man wearing a hard hat and high visibility vest looks out over a vast plain where heavy mining equipment can be seen in the background.
Resources Shares

Is the Fortescue share price a buy for passive income?

Let’s dig into the potential of this mining giant.

Read more »

Female miner standing next to a haul truck in a large mining operation.
Resources Shares

Major miners fall as iron ore prices continue to sink

Waning Chinese demand and oversupply concerns push iron ore prices lower.   

Read more »

A mining worker clenches his fists celebrating success at sunset in the mine.
Resources Shares

Would I buy Pilbara Minerals shares?

Are investors missing an opportunity with this lithium stock?

Read more »

Three miners looking at a tablet.
Resources Shares

Here's the earnings forecast out to 2029 for BHP shares

Let’s dig into the predictions.

Read more »

A smiling miner wearing a high vis vest and yellow hardhat does the thumbs up in front of an open pit copper mine.
Broker Notes

Why Macquarie expects this ASX All Ords copper stock to soar 48% in a year

Macquarie forecasts another big year of gains ahead for this ASX All Ords copper stock. But why?

Read more »

Female miner standing smiling in a mine.
Broker Notes

Why Macquarie predicts Pilbara Minerals shares could surge 71%

Macquarie forecasts a big rebound ahead for Pilbara Minerals shares. Let’s find out why.

Read more »

Two mining workers in orange high vis vests walk and talk at a mining site.
Resources Shares

ASX All Ords mining stock sinks on US silver acquisitions

Investors are bidding down the ASX All Ords miner on US acquisition news. But why?

Read more »

Image from either construction, mining or the oil industry of a friendly worker.
Resources Shares

How these 2 tailwinds could boost the BHP share price into 2026

A leading expert forecasts that BHP shares are set to recover. But why?

Read more »