Broken Hill Mines Faces Operational and Financing Risks After Major Acquisition
Broken Hill Mines Limited reported a $2.42 million loss for FY2025 amid a transformative acquisition of Broken Hill Mines Holdings Pty Ltd and a $20 million capital raise, marking its relisting on the ASX under the code BHM.
- Net loss of $2.42 million driven by acquisition and re-compliance costs
- Completed acquisition of BHMH, owner of Rasp Mine and Pinnacles Mine rights
- Raised $20 million through an upsized public offer at $0.35 per share
- Company renamed and relisted on ASX with new board appointments
- Secured environmental bond surety and pursuing $40 million offtake financing
A Year of Strategic Consolidation
Broken Hill Mines Limited, formerly Coolabah Metals Limited, has reported a net loss of $2.42 million for the financial year ended 30 June 2025. This result reflects significant one-off costs associated with the acquisition of Broken Hill Mines Holdings Pty Ltd (BHMH) and the company’s re-compliance with ASX Listing Rules following a major corporate restructuring.
The acquisition, completed in July 2025, represents a pivotal shift for Broken Hill Mines, transforming it from a junior explorer into a producer with operational assets. BHMH owns the Rasp Mine, a well-established zinc and lead-silver operation in the prolific Broken Hill region of New South Wales, and holds rights to 70% of net smelter returns from the nearby Pinnacles Mine under a profit-sharing agreement.
Capital Raising and Market Re-entry
To support this strategic consolidation, Broken Hill Mines successfully raised $20 million through an upsized public offer priced at $0.35 per share, reflecting strong investor demand. The capital raise, alongside the issuance of shares and options as consideration for the acquisition, significantly bolstered the company’s balance sheet, with cash reserves standing at over $21.8 million at year-end.
Following shareholder approval and regulatory compliance, the company changed its name to Broken Hill Mines Limited and was relisted on the ASX under the ticker BHM in July 2025. This relisting marks a new chapter, positioning the company to advance its growth strategy in one of Australia’s most renowned mining jurisdictions.
Operational and Financial Outlook
The Rasp Mine continues to generate positive cash flow, having produced approximately 450,000 tonnes per annum with capacity to increase to 750,000 tonnes. The company has secured a surety bond replacing a $17 million cash-backed environmental bond, releasing significant cash for development activities. Additionally, Broken Hill Mines is negotiating a $40 million financing facility linked to lead concentrate offtake agreements with Hartree Metals LLC, which, if finalized, would provide further financial flexibility.
Management has also implemented key governance changes, including the appointment of Executive Chair Patrick Walta and new non-executive directors with extensive mining and financial expertise. These leadership changes underscore the company’s commitment to operational excellence and strategic execution.
Risks and Challenges Ahead
Despite the positive momentum, Broken Hill Mines faces several risks typical of mining operations, including commodity price volatility, regulatory approvals for tenement renewals, and the inherent uncertainties of resource estimation. The company’s ability to convert mineral resources into profitable production remains a critical focus, alongside securing final terms for offtake financing.
Investors should also note that the acquisition was accounted for as a reverse takeover, with BHMH effectively acquiring the net assets and listing status of the company. This complex transaction structure requires careful integration and execution to realize anticipated synergies.
Bottom Line?
With its acquisition complete and capital raised, Broken Hill Mines is poised for growth, but operational execution and financing finalization will be key to unlocking value.
Questions in the middle?
- Will Broken Hill Mines finalize the $40 million offtake financing with Hartree Metals soon?
- How will the integration of BHMH’s assets impact operational performance and costs?
- What are the prospects for renewing critical tenements like CML7 beyond 2026?
