How Is Brockman Mining Navigating HK$34.6M Loss While Advancing Marillana?

Financial Performance and Liquidity

Brockman Mining Limited reported a consolidated net loss after tax of HK$34.6 million for the fiscal year ended 30 June 2025, a significant increase from the HK$13.4 million loss recorded in the prior year. The loss was primarily driven by ongoing exploration and evaluation expenses associated with its iron ore projects in Western Australia, including its share of joint operation costs. Notably, the Group recorded no revenue during the year, reflecting its status as a development-stage miner.

Despite the losses and operating cash outflows of HK$18.6 million, Brockman has taken steps to bolster its liquidity position. The Group secured extensions and increases to loan facilities from a substantial shareholder, including an increase of a US$4.3 million facility to US$6.8 million, with undrawn balances available to meet working capital needs. These loans bear a high interest rate of 17% per annum and are repayable by the end of 2026.

Project Development Progress

The Group’s flagship asset, the 50%-owned Marillana Iron Ore Project, continues to advance through critical technical and environmental milestones. The joint operation with Polaris Metals Pty Ltd has completed confirmatory metallurgical testwork, demonstrating improved yields exceeding 45% compared to previous estimates. Environmental management plans and hydrological studies are underway, supported by ongoing consultation with Traditional Owners to address social and cultural considerations.

Infrastructure development remains contingent on key approvals and final investment decisions (FID). The project benefits from a port capacity allocation at the Port of Port Hedland’s Stanley Point 3 facility, managed through a joint venture between Mineral Resources Limited and Hancock Prospecting. However, the timing of infrastructure construction and FID remains uncertain, hinging on regulatory consents and agreements with native title and landholders.

Resource Base and Exploration Outlook

Brockman holds substantial mineral resources and ore reserves, with Marillana boasting over 1.5 billion tonnes of hematite mineralisation and probable ore reserves exceeding 1 billion tonnes. The Ophthalmia project, also 50% owned, contains a mineral resource of approximately 341 million tonnes. Exploration activities continue at regional projects such as Punda Springs, where initial drilling has returned promising iron grades, with further drilling planned to delineate resource continuity.

The Group maintains a disciplined approach to capital expenditure, with no development or capital expenditures recognised during the year. This cautious stance reflects the need to align spending with funding availability and project readiness.

Governance, ESG, and Risk Management

Brockman emphasizes strong corporate governance and environmental, social, and governance (ESG) practices. The Company complies with relevant listing rules on both the ASX and SEHK and maintains a comprehensive ESG reporting framework. Safety and community engagement are priorities, with ongoing efforts to manage environmental impacts and foster positive relationships with Traditional Owners and local stakeholders.

Nonetheless, the Group acknowledges material uncertainties regarding its ability to continue as a going concern, given its reliance on external funding and the inherent risks of project development. Commodity price volatility, regulatory approvals, and infrastructure access remain key risks that could affect future operations and financial performance.