Broken Hill Mines Reports 56% Revenue Rise with $48.8M FY2026 Loss

Losses Mount as Acquisition Costs and Re-Listing Hit the Bottom Line

Broken Hill Mines Limited (ASX:BHM) reported a substantial net loss of $48.8 million for the year ended 30 June 2026, a sharp reversal from a $3.2 million profit in the prior year. This swing primarily reflects the acquisition of Broken Hill Mines Holdings Pty Ltd (BHMH) and associated re-compliance with ASX listing rules, which together accounted for significant non-recurring expenses including a $7.6 million deemed listing cost. Despite the loss, revenue surged 56% to $90.9 million, driven by increased production and sales from the Rasp Mine and the recommencement of mining at Pinnacles.

Operational Momentum Builds at Broken Hill Assets

The company’s transition from an exploration entity to an operating silver, lead, and zinc producer marked a key theme of FY2026. Production ramped up notably at the Rasp Mine, with 464,000 tonnes processed yielding 25,000 tonnes of zinc concentrate and 12,700 tonnes of lead concentrate. The introduction of high-grade ore from the Main Lode, mined for the first time since the 1970s, materially improved feed grades and plant throughput. Meanwhile, mining activities resumed at the Pinnacles Mine, delivering ore to the Rasp processing plant and marking the first mining since 2021.

Broken Hill Mines also advanced infrastructure projects, including front-end engineering for a tailings dewatering facility intended to replace the existing solar drying process and boost processing capacity towards the plant’s 750,000 tonnes per annum nameplate. Importantly, the company secured a long-term renewal of the Rasp CML7 mining lease through to 2047, securing tenure for its core operations.

Capital Raises and Financing Provide Liquidity for Growth

In the wake of the acquisition and relisting, Broken Hill Mines completed a $20 million re-compliance capital raise and a subsequent $38.5 million equity raise during the year, bolstering cash reserves. The company also secured a US$25 million silver-lead concentrate offtake agreement and associated finance facility with Hartree Metals LLC, with US$7.5 million undrawn at year-end. Post-year end, management announced a fully underwritten $90 million equity raise aimed at accelerating growth projects at both Rasp and Pinnacles, alongside a non-binding Letter of Intent with Ausinmet for the purchase of Rasp zinc concentrates and a US$30 million working capital facility.

Exploration Success Signals Potential Resource Upside

Exploration efforts intensified with a 42,000-metre drilling program across Rasp and Pinnacles. Notably, drilling at Pinnacles identified a continuous high-grade silver-lead-zinc zone at the Perseverance target, extending 350 metres down dip and up to 100 metres wide. At Rasp, new high-grade intersections in multiple ore bodies, including Blackwoods and British, suggest potential resource extensions. The company also announced a major new discovery at the Centenary orebody, located just 250 metres from current operations, representing a significant bulk tonnage, high-grade mineralisation zone that could materially expand the resource base. These developments underpin the company’s strategy to leverage its processing infrastructure to create a regional mining hub, exemplified by a Mining and Processing Cooperation Agreement with Kingfisher Mining Limited.

These exploration highlights dovetail with recent announcements of high-grade intercepts and resource expansions at both Rasp and Pinnacles, pointing to a promising pipeline of growth opportunities for Broken Hill Mines high-grade silver-lead-zinc intercepts and major new discovery at Centenary Zone.

Governance Refresh and Executive Remuneration Aligned with Growth

The year also saw significant board changes with the appointment of Executive Chair Patrick Walta and four new non-executive directors, bringing deep operational and financial expertise. The remuneration framework emphasizes pay-for-performance with a mix of fixed salary, short-term incentives tied to safety, production, and cost metrics, and long-term incentives linked to relative total shareholder return over three years. Executive KMP received performance rights subject to vesting conditions aligned to operational and shareholder value milestones.

Material Uncertainty on Going Concern Despite Strong Liquidity

The company’s auditors highlighted a material uncertainty regarding going concern due to the FY2026 loss and working capital deficit. However, directors remain confident in liquidity, citing $33.7 million cash on hand, $54.7 million total liquidity including undrawn debt and concentrate inventory, and the recent equity raise announcements. The operational ramp-up and diversified ore feed sources are expected to improve cash flows, while discretionary exploration and capital expenditures can be managed to preserve liquidity.

Investors should watch the execution of the $90 million equity raise, ramp-up progress at Rasp and Pinnacles, and commodity price fluctuations, all of which will be critical to the company’s financial trajectory and ability to convert its mineral resources into sustained cash flow.