Weekly Wrap: Majors Chase Natural Hydrogen, Gold Play Lands Star MD & The Don's Energy Revolution
BUS adds proven mine-builder as MD, Rio and BP back natural hydrogen, and what Trump's energy orders mean for ASX small-caps
This week saw the share price of our investment in Bubalus Resources (ASX: BUS) rocket on the appointment of an experienced managing director, while Donald Trump's return to the White House brought sweeping changes to US energy policy that could reshape opportunities for ASX-listed companies.
Before we dive into the week that was, here's what you need to know:
BUS shares up 22% on Brendan Borg MD appointment
Trump's six energy-focused executive orders signal policy shift
Rio Tinto and BP join natural hydrogen investment race
Plus, we're about to release our 10 Must-Watch ASX Resource Stocks For 2025
Let's get into it.
Bubalus Resources: Managing Director Appointed
Many will recall we added BUS to our portfolio in late 2024, attracted by their strategic position between two of Australia's highest-grade gold mines. At 13.5c and a $7 million market cap, this drill-ready explorer caught our attention for its combination of prime location and permitted drill targets.
One of the key factors in our investment was the appointment of experienced small-cap director Brendan Borg to the board. When BUS announced this week that Brendan would step up to managing director, the market response was clear - shares closed the week up 22% to 16.5c.
Brendan's track record speaks volumes:
In 2017, he took Celsius Resources from 2.8c to 24.5c, building a $200 million market cap in less than twelve months by drilling out a large cobalt deposit in Namibia.
Brendan joined the board of BGS, now LLL, in 2018 and saw the company go from junior lithium explorer all the way through to production and eventual sale in 2024.
With the appointment of Brendan, BUS now has a Managing Director with a proven history of shareholder return and the skill set to take a project from grassroots all the way through to production and eventual sale.
For those wanting a quick snapshot into why we invested in BUS, it is:
A valuation of only $7 million
Well funded with $3.5 million cash
Exposure to two in-demand metals - gold and antimony
Prime location in a proven tier-1 mining region
High-grade surface sampling results already in hand
Drill targets identified and permits secured
Led by a veteran small-cap director with multiple successes
With gold prices pushing USD$2,800 an ounce and trading at all-time highs, BUS's timing could hardly be better. Trump's calls for US interest rate cuts only strengthen the case for gold, as lower rates traditionally support precious metal prices.
It's an old rule of thumb: Lower rates typically drive investors away from the US dollar and into gold as a safe haven, driving up the gold price. It’s a pattern we've seen play out time and time again in markets.
Brendan taking the reins as managing director speaks volumes about what he sees in these Victorian gold projects. With drilling to begin in early April, we won't have to wait around long to find out.
Victoria's gold scene runs deeper than most realise. While the state might be known for footy and horse racing, it's home to some of the highest-grade gold mines you'll find in Australia.
The mammoth Fosterville gold mine, owned by $68 billion company AgnicoEagle Mines and Australia's second highest-grade producing gold mine, Costerfield, owned by $450 million Canadian listed Mandalay Resources, sit on either side of the $7 million BUS tenements.
Between Brendan's proven ability to build shareholder value and BUS holding some of the most coveted exploration ground in Victorian gold country, we see substantial upside for this $7 million company as drilling approaches.
Natural Hydrogen: Here Come The Big Boys
The natural hydrogen story took an interesting turn this week. Rio Tinto and BP, with combined market caps north of $175 billion, both invested in a private natural hydrogen company called Snowfox Discovery.
We've been beating the drum on natural hydrogen for months. While some remain sceptical about this emerging sector, having both a major miner and global energy giant put their money behind it adds serious weight to the story.
For anyone new to the natural hydrogen story, the big names are piling in. Bill Gates, Jeff Bezos, Mitsubishi Industries, Osaka Gas, and Fortescue were already in the game before Rio and BP joined the party this week.
It's rare to have a major mining company and a major energy company both investing in the same sector, adding in the likes of Gates and Bezos, and this becomes a battle for the billionaires to make a big discovery.
We've backed ASX small-cap Top End Energy (ASX: TEE), which is valued at a mere $25 million and calls some of the names above its neighbours with land located in Kansas, the global hot spot for natural hydrogen.
While the billionaires battle it out, TEE offers ASX investors a ground-floor opportunity in this emerging sector. Their strategic Kansas position puts them in the thick of the action at a fraction of the valuation of their neighbours.
If things fall into place, we could be sitting on many multiples of our current investment.
Trump: The Executive Order Changes
The Don is back in the Oval Office, and he’s hit the ground running, signing a barrage of executive orders in his first few days, with six directly targeting energy policy.
His declaration of a national energy emergency and signature "drill, baby, drill" mandate signal the most dramatic shift in US energy policy since the 1970s.
The six energy orders:
Withdrawal from the Paris climate agreement
Lifting LNG export restrictions
National energy emergency declaration to expedite fossil fuel infrastructure
Lifting Alaska oil and gas restrictions
Consumer price reduction mandate focusing on fuel costs
New restrictions on wind power development, both onshore and offshore
His announcement of the US $500 billion Stargate project, announced with OpenAI, Oracle and SoftBank, particularly caught our eye.
This massive investment in AI infrastructure and data centres creates interesting dynamics for ASX energy players.
Gas Players Could Benefit
The restart of US LNG export approvals turned our heads. Tamboran Resources (ASX: TBN) wasted no time, flying to Washington to pitch a US $5 billion data centre project powered by their Beetaloo Basin gas. With incoming Energy Secretary Chris Wright's Liberty Energy already backing their operations, Tamboran's timing looks strategic.
Critical Minerals Story Strengthens
While Trump's orders walked back EV mandates, they doubled down on securing supply chains outside of China. For ASX small-cap miners with advanced projects in rare earths, lithium and copper, this could accelerate off-take discussions with US partners.
While these policy shifts create opportunities, we're staying focused on small-caps with strong fundamentals that can benefit from, but don't depend on, US policy changes. The next few months should reveal which of these executive orders face legal challenges versus those that drive immediate market impact.
Top Stocks To Watch For 2025
This coming week, we will be dropping our Must-Watch Resource Stocks for 2025; we've got a mix of assets across the world.
Our 2024 picks delivered some standout results - De Grey Mining's (ASX: DEG) $5 billion takeover, Sun Silver's (ASX: SS1) 300% gain, and Asian Battery Metals’ (ASX: AZ9) high-grade copper discovery.
For 2025, we've focused mostly on small-cap explorers. These companies carry higher risk, but with that comes the potential for significant returns on successful exploration. The list drops this week - make sure you're subscribed to get it first.
