Broken Hill Mines has delivered a standout December quarter with record mining rates at Rasp Mine, strong exploration results, and a robust financial position, setting the stage for accelerated growth in 2026.
- Record quarterly mining rate at Rasp Mine with 60% capacity utilisation
- Accessed high-grade Main Lode ore body, ramping up production
- Strong high-grade silver-lead-zinc intercepts from Rasp and Pinnacles drilling
- Positive operating cash flow of A$1.6 million and A$45.1 million cash on hand
- Transition to owner-operator mining expected to reduce costs by 25-30%
Operational Breakthroughs at Rasp Mine
Broken Hill Mines (ASX – BHM) has marked its first full quarter as a listed company with a series of operational milestones that underscore its growing momentum. The December 2025 quarter saw the Rasp Mine achieve its highest quarterly mining rate since mid-2020, reaching approximately 60% of its 750,000 tonnes per annum capacity. This ramp-up was driven by successful access to the high-grade Main Lode ore body after a year of meticulous planning and development, with processing of development ore commencing in October and first stoping ore processed in December.
Underground development advanced by 11% quarter-on-quarter, with capital development metres increasing to open new mining levels in Blackwoods South, North, and Western Min. Importantly, Broken Hill Mines is transitioning from contractor Byrnecut to owner-operator mining at the end of January 2026, a move expected to deliver significant cost savings of 25-30% per development metre.
Exploration Success Fuels Resource Growth Prospects
Exploration drilling at both Rasp and Pinnacles mines has yielded exceptional high-grade silver-lead-zinc intercepts, reinforcing the company’s resource growth strategy. At Rasp, assays revealed spectacular grades, including intercepts exceeding 60% zinc equivalent with silver grades surpassing 400 grams per tonne. Meanwhile, the Pinnacles Mine’s maiden Phase 1 drill program, expanded to 8,500 metres, confirmed consistent mineralisation across multiple zones, with highlights such as 7.9 metres at 56.4% zinc equivalent and 921 grams per tonne silver.
These results underpin the ongoing 42,000-metre 2026 exploration program, aimed at targeted Mineral Resource upgrades scheduled for the second half of the year. The company is also advancing technical studies to optimise mining at Pinnacles, with open pit operations expected to restart in the June 2026 quarter.
Financial Strength and Strategic Capital Management
Financially, Broken Hill Mines reported a 71% increase in sales revenue to A$30.1 million and turned positive operating cash flow of A$1.6 million, a 124% improvement from the prior quarter. The company ended December with a strong cash balance of A$45.1 million and total liquidity of A$90 million, bolstered by a recent A$38.5 million capital raise and a US$25 million financing facility with Hartree Partners.
Commodity prices have also played a favourable role, with the average silver price received during the quarter at US$56 per ounce, now nearly doubled to a spot price of approximately US$114 per ounce. This price tailwind is expected to further enhance cash flow as production scales up.
Infrastructure and Leadership Enhancements
To support its growth trajectory, Broken Hill Mines is progressing the Front End Engineering Design for a tailings dewatering plant, targeted to be operational by the end of 2026. This facility will eliminate costly solar drying of tailings and enable the mill to return to its nameplate capacity of 750,000 tonnes per annum.
The company has also strengthened its leadership team with the appointments of Fran Burgess as Processing Manager and Sarah Collis as Geology Manager, both bringing extensive experience to drive operational ramp-up and resource expansion initiatives.
Looking Ahead
With the Rasp Mine ramping up and Pinnacles poised for production restart, Broken Hill Mines is well positioned to capitalise on its high-grade resource base and favourable market conditions. The transition to owner-operator mining and infrastructure upgrades are expected to improve cost efficiency and throughput, setting a solid foundation for growth in 2026 and beyond.
Bottom Line?
Broken Hill Mines’ record quarter and strategic initiatives position it for a transformative year ahead, but execution risks remain as it scales operations and integrates new assets.
Questions in the middle?
- How quickly will the transition to owner-operator mining translate into realised cost savings?
- What impact will ongoing exploration results have on resource upgrades and mine life extension?
- How sensitive is Broken Hill Mines’ cash flow to fluctuations in commodity prices, especially silver?