Has Broken Hill Mines Limited Positioned Itself for a Stronger Second Half Despite a Statutory Loss?
Source: Kapitales Research
Highlights:
Broken Hill Mines Limited (ASX: BHM) reported AU$48.1 million in revenue for the half-year ended 31 December 2025, alongside a statutory net loss of AU$29.9 million.
Production at the Rasp Mine delivered 12,000 tonnes of zinc concentrate and 5,000 tonnes of silver-lead concentrate during the period.
Cash and cash equivalents rose to AU$45.1 million, strengthening liquidity following capital initiatives and financing arrangements.
Broken Hill Mines Limited Delivers Revenue Growth Amid Accounting Impacts
Broken Hill Mines Limited (ASX: BHM) recorded AU$48.1 million in revenue for the six months to 31 December 2025, reflecting a substantial increase compared to the prior corresponding period. Despite the stronger top-line performance, the Group reported a net loss of AU$29.9 million, primarily influenced by acquisition-related accounting charges, listing expenses and share-based payments during the half-year.
The period included the consolidation of newly acquired entities and the financial impact of corporate restructuring, which materially shaped the statutory result.
Operational Momentum at the Rasp Mine
Operationally, the Group continued to advance development and production at the Rasp Mine in Broken Hill, New South Wales. Underground development totalled 2,438 metres during the period, while 253,000 tonnes of ore were mined, including higher-grade material from the Blackwood ore body.
Production for the half-year comprised approximately 12,000 tonnes of zinc concentrate and 5,000 tonnes of silver-lead concentrate. Revenue was primarily generated from zinc, silver and lead sales, demonstrating a more active production phase compared to the prior period.
Exploration efforts at the Pinnacles Project also progressed, supporting longer-term resource growth initiatives.
Strengthened Balance Sheet and Liquidity
A notable feature of the half-year was the improvement in liquidity. Cash and cash equivalents increased to AU$45.1 million at 31 December 2025, compared to AU$2.4 million at the start of the period. This uplift was supported by capital raisings, debt facilities and operational cash inflows.
Total assets expanded to approximately AU$141.0 million, while net assets rose to AU$62.3 million. The Group also transitioned its convertible notes into equity during the period, simplifying its capital structure.
Borrowings at period end included a financing facility associated with an offtake agreement, providing additional funding flexibility to support ongoing mine development and working capital requirements.
Investment in Development and Growth
Mine development expenditure remained a central focus, with significant capital directed toward expanding underground access and advancing ore bodies. Mine development assets increased materially during the half-year, reflecting continued investment in sustaining and enhancing production capacity.
While statutory earnings were impacted by non-cash expenses and one-off accounting adjustments, underlying operational activity indicates a company transitioning from corporate restructuring toward scaled production.
Outlook: Operational Execution in Focus
Looking ahead, performance will hinge on sustained throughput at the Rasp Mine, cost discipline and effective deployment of capital. The strengthened cash position provides flexibility to manage development commitments and operational volatility.
The key question for investors is whether improving production metrics and enhanced liquidity can translate into positive operating cash flow in upcoming reporting periods. With expanded development activity and a more robust capital base, Broken Hill Mines Limited enters the second half positioned to convert operational progress into financial stability.
Disclaimer for Kapitales Research
The materials provided by Kapitales Research, including articles, news, data, reports, opinions, images, charts, and videos ("Content"), are intended for personal, non-commercial use only. The primary goal of this Content is to educate and inform readers. This Content is not meant to offer financial advice, nor does it include any recommendation or opinion that should be relied upon for making financial decisions. Certain Content on this platform may be sponsored or unsponsored, but it does not serve as a solicitation or endorsement to buy, sell, or hold any securities, nor does it encourage any specific investment activities. Kapitales Research is not authorized to provide investment advice, and we strongly advise users to seek guidance from a qualified financial professional, such as a financial advisor or stockbroker, before making any investment choices. Kapitales Research disclaims all liability for any direct, indirect, incidental, or consequential damages arising from the use of the Content, which is provided without any warranties. The opinions expressed by contributors or guests are their own and do not necessarily reflect the views of Kapitales Research. Media such as images or music used on this platform are either owned by Kapitales Research, sourced through paid subscriptions, or believed to be in the public domain. We have made reasonable efforts to credit sources where appropriate. Kapitales Research does not claim ownership of any third-party media unless explicitly stated otherwise.
Customer Notice:
Nextgen Global Services Pty Ltd trading as Kapitales Research (ABN 89 652 632 561) is a Corporate Authorised Representative (CAR No. 1293674) of Enva Australia Pty Ltd (AFSL 424494). The information contained in this website is general information only. Any advice is general advice only. No consideration has been given or will be given to the individual investment objectives, financial situation or needs of any particular person. The decision to invest or trade and the method selected is a personal decision and involves an inherent level of risk, and you must undertake your own investigations and obtain your own advice regarding the suitability of this product for your circumstances. Please be aware that all trading activity is subject to both profit & loss and may not be suitable for you. The past performance of this product is not and should not be taken as an indication of future performance.
Kapitales Research, Level 13, Suite 1A, 465 Victoria Ave, Chatswood, NSW 2067, Australia | 1800 005 780 | info@kapitales.com.au
x
Daily Dose of Buy, Sell & Hold recommendations before the market opens.
Start Your 7 Days Free Trial Now!
We use cookies to help us improve, promote, and protect our services.
By continuing to use this site, we assume you consent to this.
Read our
Privacy Policy
and
Terms & Conditions
Has Broken Hill Mines Limited Positioned Itself for a Stronger Second Half Despite a Statutory Loss?
Highlights:
Broken Hill Mines Limited Delivers Revenue Growth Amid Accounting Impacts
Broken Hill Mines Limited (ASX: BHM) recorded AU$48.1 million in revenue for the six months to 31 December 2025, reflecting a substantial increase compared to the prior corresponding period. Despite the stronger top-line performance, the Group reported a net loss of AU$29.9 million, primarily influenced by acquisition-related accounting charges, listing expenses and share-based payments during the half-year.
The period included the consolidation of newly acquired entities and the financial impact of corporate restructuring, which materially shaped the statutory result.
Operational Momentum at the Rasp Mine
Operationally, the Group continued to advance development and production at the Rasp Mine in Broken Hill, New South Wales. Underground development totalled 2,438 metres during the period, while 253,000 tonnes of ore were mined, including higher-grade material from the Blackwood ore body.
Production for the half-year comprised approximately 12,000 tonnes of zinc concentrate and 5,000 tonnes of silver-lead concentrate. Revenue was primarily generated from zinc, silver and lead sales, demonstrating a more active production phase compared to the prior period.
Exploration efforts at the Pinnacles Project also progressed, supporting longer-term resource growth initiatives.
Strengthened Balance Sheet and Liquidity
A notable feature of the half-year was the improvement in liquidity. Cash and cash equivalents increased to AU$45.1 million at 31 December 2025, compared to AU$2.4 million at the start of the period. This uplift was supported by capital raisings, debt facilities and operational cash inflows.
Total assets expanded to approximately AU$141.0 million, while net assets rose to AU$62.3 million. The Group also transitioned its convertible notes into equity during the period, simplifying its capital structure.
Borrowings at period end included a financing facility associated with an offtake agreement, providing additional funding flexibility to support ongoing mine development and working capital requirements.
Investment in Development and Growth
Mine development expenditure remained a central focus, with significant capital directed toward expanding underground access and advancing ore bodies. Mine development assets increased materially during the half-year, reflecting continued investment in sustaining and enhancing production capacity.
While statutory earnings were impacted by non-cash expenses and one-off accounting adjustments, underlying operational activity indicates a company transitioning from corporate restructuring toward scaled production.
Outlook: Operational Execution in Focus
Looking ahead, performance will hinge on sustained throughput at the Rasp Mine, cost discipline and effective deployment of capital. The strengthened cash position provides flexibility to manage development commitments and operational volatility.
The key question for investors is whether improving production metrics and enhanced liquidity can translate into positive operating cash flow in upcoming reporting periods. With expanded development activity and a more robust capital base, Broken Hill Mines Limited enters the second half positioned to convert operational progress into financial stability.
Disclaimer for Kapitales Research
The materials provided by Kapitales Research, including articles, news, data, reports, opinions, images, charts, and videos ("Content"), are intended for personal, non-commercial use only. The primary goal of this Content is to educate and inform readers. This Content is not meant to offer financial advice, nor does it include any recommendation or opinion that should be relied upon for making financial decisions. Certain Content on this platform may be sponsored or unsponsored, but it does not serve as a solicitation or endorsement to buy, sell, or hold any securities, nor does it encourage any specific investment activities. Kapitales Research is not authorized to provide investment advice, and we strongly advise users to seek guidance from a qualified financial professional, such as a financial advisor or stockbroker, before making any investment choices. Kapitales Research disclaims all liability for any direct, indirect, incidental, or consequential damages arising from the use of the Content, which is provided without any warranties. The opinions expressed by contributors or guests are their own and do not necessarily reflect the views of Kapitales Research. Media such as images or music used on this platform are either owned by Kapitales Research, sourced through paid subscriptions, or believed to be in the public domain. We have made reasonable efforts to credit sources where appropriate. Kapitales Research does not claim ownership of any third-party media unless explicitly stated otherwise.
Customer Notice:
Nextgen Global Services Pty Ltd trading as Kapitales Research (ABN 89 652 632 561) is a Corporate Authorised Representative (CAR No. 1293674) of Enva Australia Pty Ltd (AFSL 424494). The information contained in this website is general information only. Any advice is general advice only. No consideration has been given or will be given to the individual investment objectives, financial situation or needs of any particular person. The decision to invest or trade and the method selected is a personal decision and involves an inherent level of risk, and you must undertake your own investigations and obtain your own advice regarding the suitability of this product for your circumstances. Please be aware that all trading activity is subject to both profit & loss and may not be suitable for you. The past performance of this product is not and should not be taken as an indication of future performance.
Kapitales Research, Level 13, Suite 1A, 465 Victoria Ave, Chatswood, NSW 2067, Australia | 1800 005 780 | info@kapitales.com.au