Brookmount Explorations, Inc. (OTC:BMXI)
Company Analysis
1. Company Overview
Brookmount Explorations, Inc. (BMXI) is a gold production and exploration company incorporated in Nevada. It owns and operates gold mining assets in:
● Indonesia (2 producing sites in Sulawesi)
● North America (Moosehorn Project – Yukon, and McArthur Creek – Alaska)
Strategy: Expand high-grade gold production, increase throughput, and consolidate ownership.
Recent Development: As of December 2024, the company assumed full operational control of its Indonesian joint ventures.
2. Risk Summary
Operational Risks
● High dependency on Indonesian production (single-region concentration)
● Exposure to natural, regulatory, and geopolitical risks in emerging markets
● Logistical and environmental complexity in remote rainforest mining
Financial Risks
● Heavy reliance on convertible debt financing for working capital
● Share dilution risk due to frequent discounted conversions
● Cash position declined from $339k (Nov 2024) to $57k (May 2025)
● Negative cash flow from operations in Q2 2025
Governance Risks
● Pending litigation from Director Jeffrey Pittman seeking board oversight and appointment of a receiver (as of May 2025)
● Concentrated control among insiders and related entities (e.g., Leonite Capital, Seminal Church, Gennex)
3. Shareholder Report
Major Shareholders (as of May 31, 2025)
| Name | Role | Shares Owned | Ownership % |
| Jeffrey Pittman | Director (via Seminal Church) | 7,500,000 | 4.53% |
| Errin Kimball | Director (via Gennex Corp) | 4,750,000 | 2.87% |
| Nils Ollquist | CEO | 4,684,210 | 2.83% |
| Christopher Lim | CFO (via Pty Ltd) | 1,050,000 | 0.63% |
| Nicholas Medway | Secretary | 841,707 | 0.51% |
Share Structure
● Outstanding Shares:
○ Nov 2023: 75.5M
○ May 2025: 180.9M (+139% increase)
● Public Float: ~114M shares (as of May 2025)
● Frequent equity issuance and debt conversions to Leonite Capital and AES Capital
4. Debt and Liquidity Assessment
Summary (as of Q2 2025)
● Convertible Notes (Total): $819,199
● Accounts Payable: $642,000
● Cash: $57,000
● Total Liabilities: $1.79M
● Interest Expense (Q2): $81,000
● Numerous convertible promissory notes issued to Leonite Capital and AES Capital
● Most notes carry low conversion prices (~$0.75/share)
● Land Usage Rights increased from $12.6M to $45M due to transfer of JV assets to Brookmount’s full control
● Cash flow from operations (Q2 2025): negative ($47k)
5. Key Financial Highlights
FY 2024 (Ending Nov 30)
● Revenue: $18.45M
● Net Income: $9.17M
● Total Assets: $53.6M
● Cash: $339k
Q2 FY 2025 (Ending May 31)
● Revenue: $3.75M
● Net Income: $1.19M
● Cash: $57k
● Inventory: $2.13M
● Funds Held by JV ($30.5M) transferred to Land Usage Rights
6. Stability and Risk Opinion
Risk Rating: HIGH
Justification:
● Liquidity Stress: Declining cash and negative operating cash flow signal short-term financing pressure
● Governance Concerns: Active internal litigation; rising influence of related entities (Leonite, Gennex, Seminal)
● Financial Leverage: Ongoing debt issuance and conversions, limited refinancing options
● Operational Focus: Overdependence on Indonesian operations without fully commercialized North American assets
● Share Dilution: 2.4x increase in shares within 18 months indicates pressure on shareholder value
7. Recommendations for Investors
● Monitor future share issuances or debt conversions, particularly involving Leonite Capital and AES Capital
● Watch the progress of Jeffrey Pittman’s litigation
● Track development progress of North American assets (Moosehorn and McArthur Creek)
● Review Land Usage Rights for valuation accuracy and reclassification implications
● Consider dilution risks and financial sustainability before investing
Email Reach us anytime.
Investor Relations – ir@bmxigold.com
Corporate – corporate@brookmountgold.com
Phone – +1 775 234 5221
Office – 1 East Liberty Suite 600,Reno, NV 89501
https://www.brookmountgold.com/
