Bill Beament's mining story
Bill Beament's mining story
Bill Beament created a 1000 bagger for investors with Northern Star Resources (NST). His career began at the young age of 13 when he set his sights on a mining
Bill Beament created a 1000 bagger for investors with Northern Star Resources (NST)
His career began at the young age of 13 when he set his sights on a mining career, defying his family's expectation for him to take over their farm machinery business. His ambition led him to Kalgoorlie, the heart of mining education in Australia, where he studied mine engineering.
After finishing his education, Beament spent 8 years in underground gold mining, starting as a miner and advancing to management roles. He excelled at Barminco, where he became the general manager of WA operations in Perth, overseeing 13 mine sites and 1,000 employees.
NST was far from a market favorite when Beament joined in 2007. The share price was a mere $0.008, and the mcap stood at $800K. Beament oversaw a greenfields exploration project in the Kimberley region, an unconventional choice for a mining engineer. Jubilee Mines, the cornerstone investor, provided initial support, but unexpected events, like the 2008 financial crisis and Xstrata's acquisition of Jubilee, brought instability to the company.
Beament and his team took proactive measures, selling assets, downsizing the tenement package, and securing deals to keep the company afloat. It was a tumultuous period, but they persevered.
In 2009, as the company's financial situation became really dire, Beament received a warning from the ASX, questioning whether NST was still a going concern. The market cap had plummeted to $800K, and cash reserves were nearly depleted.
The turning point came in 2010 when NST announced the Paulsens gold mine acquisition for $27M. However, just before finalizing the deal, the seller insisted on a higher price, ultimately securing $40M. The deal was funded through debt, with the idea to pay it off from the production proceeds. “They thought I was mad, but I knew we’d got a bargain,” Beament said.
Over the next few years, NST went on a buying spree, acquiring several gold mines in Australia. The major breakthrough came at the end of 2013 when the gold price plummeted to $1,200/oz, leading prominent mining companies like Barrick and Newmont to cut costs and reduce debt.
This created a unique opportunity for Beament, and over the following 2 years, NST embarked on a series of strategic acquisitions. They started with Barrick's Plutonic mine, followed by 2 more Barrick mines, Kanowna Belle & East Kundana. Later, they sealed a deal to acquire Newmont's Jundee mine.
In just a few years, NST allocated $200M to exploration efforts, resulting in an increase of 5Moz in reserves and over 9 Moz in resources. This remarkable performance was reflected in the company's market cap, which surged to an impressive $12B by 2020.
In 2021, Beament left NST to lead the recapitalization of copper junior Venturex (now Develop Global). Under his leadership, the company's share price surged from $0.50 to $3.50.
Develop focusses on copper, zinc, and lithium, aiming for a $3B valuation. They tap into the energy transition demand, with Beament foreseeing a "tsunami" in critical minerals.
Bill Beament's journey from engineer to industry titan showcases resilience and strategic thinking. With new ventures in lithium and critical minerals, his career is far from over, solidifying him as a force in the mining world.