Broken Hill Mines Limited reported a $29.94 million loss for the half-year ending December 2025, driven by acquisition and re-compliance costs. Despite this, the company advanced production at its Rasp Mine and secured significant financing to support growth.
- Half-year loss of $29.94 million due to acquisition and listing expenses
- Mining and exploration progress at Rasp Mine and Pinnacles Project
- Sales revenue reached $48 million with notable concentrate production
- Completed $38.5 million capital raise and secured US$25 million finance facility
- Transition to owner-operator development model announced post-period
Financial Overview and Acquisition Impact
Broken Hill Mines Limited (ASX: BHM) released its half-year results for the period ending 31 December 2025, revealing a net loss of $29.94 million. This downturn contrasts with a profit of $11.48 million in the prior corresponding period, reflecting significant one-off costs associated with the reverse acquisition of Broken Hill Mines Holdings Pty Ltd and the re-compliance with ASX listing rules. The reverse acquisition, completed in July 2025, positioned Broken Hill Mines Holdings as the accounting parent, reshaping the company’s financial structure and operational reporting.
The loss includes a $7.57 million listing expense and $1.91 million in share-based payments, both non-cash items that obscure the underlying operational performance. Despite these costs, the company reported $48.14 million in revenue, driven by the sale of zinc, lead, and silver concentrates mined primarily at the Rasp Mine in Broken Hill, NSW.
Operational Progress at Rasp and Pinnacles
Operationally, Broken Hill Mines made steady advances during the half-year. The company mined 253,000 tonnes of ore, including high-grade material from the Blackwood ore body, the first main lode ore processed at Rasp since the 1970s. Production milestones included 12,000 tonnes of zinc concentrate and 5,000 tonnes of silver-lead concentrate, underpinning the $48 million sales revenue figure.
Exploration and development efforts continued at both the Rasp Mine and the Pinnacles Project, with a total underground development of 2,438 metres. These activities demonstrate the company’s commitment to expanding its resource base and improving operational throughput.
Capital Raising and Financing Initiatives
To support its growth trajectory, Broken Hill Mines successfully completed a $38.5 million capital raise in October 2025. Additionally, the company secured a US$25 million finance facility with Hartree Metals LLC, linked to a silver-lead concentrate offtake agreement. The facility, drawn in tranches, provides crucial liquidity and flexibility, with a 12-month repayment grace period and no covenants, reflecting confidence from financiers in the company’s prospects.
The company also converted all outstanding options (BHMO) into ordinary shares by December 2025, simplifying its capital structure and potentially enhancing shareholder value.
Corporate and Governance Developments
Broken Hill Mines underwent significant corporate restructuring during the period, including a name change from Coolabah Metals Limited and the acquisition of Broken Hill Mines Holdings Pty Ltd. The Board saw new appointments with Patrick Walta assuming Executive Chair and several new non-executive directors joining in July 2025, signalling a refreshed leadership team focused on delivering operational and strategic objectives.
Post-reporting period, the company announced the termination of its contract with Byrnecut Australia Proprietary Limited, transitioning to an owner-operator development model from February 2026. This move aims to enhance operational control and cost efficiency at the Rasp Mine.
Outlook and Considerations
While the half-year loss highlights the financial impact of corporate restructuring and acquisition-related costs, Broken Hill Mines’ operational progress and strengthened balance sheet position it for potential growth. The company maintains a positive working capital surplus of $18.5 million and continues to invest in exploration and mine development. However, investors should monitor the execution of the owner-operator model and the company’s ability to convert exploration success into sustainable cash flow.
Bottom Line?
Broken Hill Mines is navigating the costs of transformation while laying groundwork for operational growth, next steps will test its ability to convert potential into profit.
Questions in the middle?
- How will the transition to an owner-operator model impact operational costs and production efficiency?
- What are the prospects for resource expansion at the Pinnacles Project and Blackwood ore body?
- How will the company manage its debt and capital structure amid ongoing development and exploration expenditures?