How Polymetals’ Endeavor Mine Achieved Operating Cost Break-Even in One Month
Polymetals Resources reports its Endeavor silver zinc mine in NSW has met operating costs from cash flow within a year of acquisition, marking a key milestone as production ramps up.
- Endeavor mine meets operating costs in first full production month
- July production of 5,398 dry metric tonnes of silver-lead and zinc concentrates
- Second concentrate prepayment of A$11.6 million secured
- Mining of high-grade Upper North Lode silver ore to start in August
- Zinc concentrate shipment scheduled for early September
A Milestone Achieved
Polymetals Resources Ltd (ASX, POL) has announced a significant operational milestone at its Endeavor silver zinc mine in the Cobar Basin, New South Wales. Just twelve months after acquiring the project, the company reports that the mine’s cash flow has met its operating costs in its first full month of production. This achievement underscores the success of Polymetals’ redevelopment efforts and signals a promising step towards sustainable profitability.
Production and Prepayments
In July, Polymetals produced 5,398 dry metric tonnes of silver-lead and zinc concentrates. The company secured a second prepayment of A$11.6 million from its offtake partner, reflecting strong market confidence in the mine’s output. Transport of zinc concentrate is set to commence mid-August, with the first ocean shipment planned for early September, marking the transition from production to revenue realisation.
Ramping Up and Future Prospects
The ramp-up of operations continues to progress according to plan, with weekly improvements in mining and processing performance. Notably, access to the high-grade silver Upper North Lode has been established, and mining from this zone is scheduled to begin in August. This development is expected to significantly enhance cash flows and further strengthen the mine’s financial position.
Strategic Outlook
Executive Chairman Dave Sproule highlighted the company’s pride in reaching a self-sustaining operational status within a year. He emphasised the shift in focus towards optimising mining and milling to establish a consistent, long-term profitable enterprise. The board’s optimism about unlocking further value from the Endeavor mine reflects confidence in both the asset and the company’s strategic direction.
Broader Implications
Polymetals’ progress at Endeavor is a noteworthy example of how targeted redevelopment and operational discipline can revive a mining asset. As the company moves into mining higher-grade ore and increasing shipments, investors will be watching closely to see if these early positive signs translate into sustained financial performance and growth.
Bottom Line?
Endeavor’s break-even cash flow marks a turning point, but the real test lies ahead as high-grade ore mining begins.
Questions in the middle?
- How will the commencement of Upper North Lode mining impact overall profitability?
- What are the company’s plans for further exploration and resource expansion in the Cobar Basin?
- Can Polymetals sustain and grow cash flow amid fluctuating silver and zinc prices?
