Polymetals Resources has resumed operations at its Endeavor Mine following a tragic incident, completing first concentrate shipments and securing $34.4 million in new capital to support exploration and ramp-up.
- Fatal incident in October led to operational suspension and independent investigation
- First zinc and silver-lead concentrate shipments completed during the quarter
- Mining commenced at high-grade Upper North Lode, boosting production outlook
- Institutional placement raised $34.4 million to strengthen balance sheet
- Exploration expanded with increased drilling capacity and new rigs
Tragic Incident and Operational Pause
Polymetals Resources’ December 2025 quarter was marked by a sobering event, the unintended detonation of a ballistic disc at the Endeavor Mine on 28 October resulted in the deaths of two employees and injury to another. This tragic incident led to a temporary suspension of operations as the company undertook an independent investigation and a comprehensive review of its explosives handling procedures. The cause remains under investigation by NSW authorities.
During this period, Polymetals prioritised the welfare of its workforce and the affected families, providing psychological support and managing workforce disruptions including resignations and compensation-related absences. Operations recommenced in mid-November with a staged ramp-up to continuous mining by the end of the month.
Resumption of Production and First Shipments
Despite the challenges, Polymetals achieved key operational milestones. The company completed its first shipment of zinc concentrate in October, followed by the first silver-lead concentrate shipment in December. Logistics and handling processes have now been established as routine, with concentrate transported from the mine to Adelaide and onward to the Korea Zinc Onsan smelter in South Korea.
Mining from the high-grade Upper North Lode (UNL) commenced during the quarter, expected to extend over two years and significantly enhance production and cash flow, especially given the current silver price, which is nearly three times the company’s modelled price.
Exploration and Growth Initiatives
Exploration efforts intensified with near-mine drilling at the Carpark prospect expanding to double shifts and a second rig mobilised for regional targets across the North Cobar Basin. While recent drill results have yet to deliver major discoveries, they continue to refine geological understanding and prioritise targets for future testing.
Regional exploration is progressing with geophysical surveys designed to identify new mineralised systems, focusing on several high-priority targets for upcoming drilling campaigns.
Financial Strengthening and Corporate Developments
To support operational recovery and exploration acceleration, Polymetals secured additional working capital facilities, including a $5 million interest-free loan from the Chairman’s family and a $10 million bridging facility from Ocean Partners. A successful institutional placement raised $34.4 million, strengthening the balance sheet and providing liquidity with approximately $30 million cash on hand and $15 million undrawn finance at quarter-end.
The company also managed a leadership transition with the resignation of Endeavor Mine’s General Manager and appointment of an acting replacement, signalling continuity in operational management.
Looking Ahead
Polymetals has outlined clear priorities, maintaining safety and care for its people, ensuring consistent and reliable operations, disciplined financial management, and focused exploration to drive future growth. With production expected to ramp up significantly in the March quarter, particularly from the UNL, the company aims to rebuild momentum and deliver long-term value despite the recent setbacks.
Bottom Line?
Polymetals’ recovery at Endeavor is underway, but the path to steady production and exploration success remains closely watched.
Questions in the middle?
- What will the final investigation reveal about the cause of the ballistic disc detonation?
- How quickly can workforce stability and production efficiency return to pre-incident levels?
- Will exploration results near Endeavor translate into significant resource extensions?