Ballard Faces Execution Risks as It Raises A$50M for Baldock Development

Capital Raising to Fuel Growth

Ballard Mining Limited (ASX, BM1) has announced a significant capital raising initiative, seeking to raise approximately A$50 million through a placement of around 62.5 million new shares at an issue price of $0.80 each. This price represents a 14% discount to the last closing price, reflecting a strategic move to secure funding for the next phase of development at its Baldock gold project in Western Australia’s Eastern Goldfields.

The placement, which is not underwritten but led by Argonaut Securities with several co-managers, will see new shares issued representing about 16.5% dilution to existing shareholders. The company also reserves the right to accept oversubscriptions up to an additional A$10 million, providing flexibility to capture further investor interest.

Advancing the Baldock Project

Ballard’s Baldock project is fully permitted for both open pit and underground mining, with approvals in place for a 2.0 million tonnes per annum processing plant and tailings storage facility. The company holds a robust mineral resource base, including a 10 million tonne resource at 3.3 grams per tonne gold, equating to 1.1 million ounces, with the Baldock deposit alone accounting for 930,000 ounces at 4.1 grams per tonne.

The capital raised will primarily fund an ambitious 220,000 metre drilling program planned for 2026, comprising 170,000 metres of reverse circulation and 50,000 metres of diamond drilling. This extensive exploration effort aims to convert inferred resources to indicated status, extend mineralisation, and underpin the delivery of a maiden ore reserve at Baldock targeted for mid-2026.

Early Works and Feasibility Studies

Beyond drilling, funds will support early works including upgrades to the accommodation village, bore field development, and a public road diversion around the mining area. These initiatives are designed to facilitate a seamless transition to a final investment decision (FID) and eventual project construction.

Concurrent studies in mining, metallurgy, and geotechnical engineering are underway, with the company aiming to deliver a definitive feasibility study (DFS) that supports standalone project economics and a mine life of five to six years initially. Ballard’s management emphasises alignment of workforce incentives with corporate goals, underscoring a focused drive towards resource growth and project advancement.

Financial Position and Risks

As of 31 December 2025, Ballard held a strong cash position of A$28.8 million, which combined with the placement proceeds, will provide a total funding base of nearly A$79 million to execute its 2026 work program. However, the placement is not underwritten, introducing some execution risk, and the company faces typical sector challenges including commodity price volatility, regulatory approvals, and operational uncertainties.

Notably, Ballard’s gold interests are held under a Mineral Rights Deed with Delta Lithium Limited, which introduces contractual dependencies and potential risks related to tenement access and management. The company also acknowledges environmental, native title, and permitting risks inherent in mining operations.

Looking Ahead

Ballard’s strategic focus for 2026 is clear, deliver resource growth through aggressive drilling, convert resources to reserves, complete feasibility studies, and prepare for a final investment decision that could unlock the value of the Baldock project as a standalone gold mine. The coming months will be critical in demonstrating the project’s potential and securing investor confidence amid a competitive and dynamic gold sector.