How Will SSH’s New Xinhai Partnership Fuel Its 17% Revenue Growth?
SSH Group Ltd reports a robust 17% revenue increase for Q3 2025, bolstered by a $2.53 million strategic placement from Xinhai Mining Services, advancing key gold projects and expanding its mining services footprint in Western Australia.
- 17% revenue growth driven by Mining and KMH divisions
- $2.75 million equity placement completed in August 2025
- Strategic $2.53 million placement from Xinhai post-quarter
- Profit Share Mining Agreement secured for Wagtail Gold Deposit
- Operational progress at Mt Fisher Gold Project and active WA tenders
Operational Momentum and Project Advancements
SSH Group Ltd (ASX, SSH) has delivered a strong quarterly performance for the three months ending September 30, 2025, reporting a 17% increase in revenue compared to the prior corresponding period. This growth reflects solid operational execution across its vertically integrated Mining and KMH divisions, underpinning the company’s evolving presence in Western Australia's mining services sector.
Significant operational milestones include the commencement of site preparation works at the Mt Fisher Gold Project, where SSH mobilised its in-house team to manage historic stockpiles and tailings. This activity supports an integrated drilling and metallurgical testing program aimed at validating historical recoveries and optimizing processing pathways. Concurrently, SSH formalised a Profit Share Mining Agreement with High-Tech Metals (ASX, HTM) for the Wagtail Gold Deposit, securing a 25% share of net project profits and positioning SSH to deliver mining services under a cost-plus contract if the project proceeds.
Capital Raising and Strategic Partnership
Financially, SSH strengthened its balance sheet through a $2.75 million equity placement completed in August 2025, attracting institutional and sophisticated investors, including a senior mining and civil sector executive as a cornerstone participant. This capital injection supports project mobilisation, operational expansion, and strategic growth initiatives.
Post-quarter, SSH announced a transformative $2.53 million strategic placement from Hong Kong Xinhai Mining Services Limited and its Australian arm, Australia Xinhai Mining Services Pty Ltd. This investment will grant Xinhai approximately a 15.5% equity stake and a board seat, with free-attaching options subject to shareholder approval. The alliance aligns SSH’s Hire | Mine | Own business model with Xinhai’s global engineering, procurement, construction, management, and operation expertise, enhancing SSH’s technical capabilities and international reach.
Corporate Developments and Forward Outlook
On the corporate front, SSH experienced leadership transitions with the resignation of Non-Executive Chairman Bruce Lane and the completion of Interim CFO Anna Lane’s tenure. The company has since consolidated financial oversight under its Managing Director and Group Financial Controller. Additionally, SSH relocated its principal office to Belmont, Western Australia, reflecting its operational growth.
Looking ahead, SSH is actively tendering for multiple surface and underground mining contracts across Western Australia and evaluating further joint venture and profit-share opportunities. The company’s strategic focus remains on disciplined growth through vertical integration, advancing key projects like Mt Fisher and Wagtail toward production readiness, and leveraging its strengthened balance sheet to capture value in the expanding mining sector.
Bottom Line?
SSH’s strategic partnership with Xinhai and operational progress set the stage for accelerated growth, but execution risks remain as project tenders and approvals unfold.
Questions in the middle?
- How will Xinhai’s board representation influence SSH’s strategic direction and project execution?
- What are the timelines and key hurdles for advancing Mt Fisher and Wagtail projects to production?
- Can SSH sustain its positive operating cash flow amid expanding project commitments and capital expenditures?
