Broken Hill Mines Limited (ASX:BHM): Rasp Silver Output and the Next Processing Milestones

Aditi Sarkar

28 October 2026 03:52 PM AEDT

Broken Hill Mines Limited (ASX:BHM): Rasp Silver Output and the Next Processing Milestones

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Highlights

Rasp processed 129,084 tonnes of ore during the September 2026 quarter.
Silver output reached 102,922 ounces, with lead and zinc also produced.
Pinnacles and Main Lode are supplying ore alongside Western Mineralisation.
FY26 revenue increased, although the company reported a net loss.
The tailings dewatering plant remains scheduled for the first half of calendar 2027.

Broken Hill Mines Limited (ASX:BHM) operates the Rasp silver-lead-zinc mine in Broken Hill, New South Wales, and develops additional ore supply from the nearby Pinnacles mine. The company’s September 2026 production update showed higher ore processing and silver output as work continued to expand the feed sources available to the Rasp plant. Its operational progress sits alongside the financing and earnings pressures disclosed in the FY26 accounts.

September Quarter Production at Rasp

In its 15 October 2026 preliminary production release, Broken Hill Mines Limited (ASX:BHM) reported 129,084 tonnes of ore processed during the September quarter. That was 8.2% above the June 2026 quarter’s 119,320 tonnes. The September rate equates to approximately 516,000 tonnes annually, against Rasp’s stated processing capacity of 750,000 tonnes per annum.

Silver production increased from 95,787 ounces in the June quarter to 102,922 ounces in September, a 7.4% quarterly rise. Lead output was 2,381 tonnes, compared with 2,376 tonnes in June. Zinc output decreased from 3,330 tonnes to 3,024 tonnes. These figures are preliminary, with the company indicating that reconciled quarterly production and financial data would follow later in October 2026.

Additional Ore Sources and Plant Development

Broken Hill Mines Limited (ASX:BHM) has been developing ore feeds from Main Lode and Pinnacles to supplement its Western Mineralisation operations. At Pinnacles, the company reported accessing a clean high-grade bench and commencing mining and trucking of ore to Rasp.

The company has also progressed drilling and development at Centenary, which it identifies as a potential further source of feed. Updated mineral resource estimates for Rasp and Pinnacles were planned for late 2026. BHM also reported that the tailings dewatering plant was on budget and scheduled to be available in the first half of calendar 2027. That facility is part of its pathway towards greater use of Rasp’s installed processing capacity.

FY26 Financial Position and Capital Raising

For the year ended 30 June 2026, Broken Hill Mines Limited (ASX:BHM) reported revenue of A$90.879 million and a net loss after tax of A$48.827 million. The company held A$33.657 million in cash and cash equivalents at year-end, with A$26.447 million in borrowings and A$9.807 million in lease liabilities.

During August 2026, the company announced an A$85 million institutional placement within a proposed A$90 million funding package. Subsequent announcements recorded withdrawal of the separate share purchase plan, so the original A$90 million proposal should not be treated as fully completed. The placement provided funding for mine development and operational expansion, but new equity also increases the number of shares on issue.

Operating and Financial Uncertainties

Expansion depends on the timing and quality of ore delivered from different deposits, plant performance and the completion of supporting infrastructure. The September quarter’s zinc decline illustrates how individual metal outputs need not move in line with total processed tonnage. In its FY26 financial statements, Broken Hill Mines Limited (ASX:BHM) also disclosed a material uncertainty relating to going concern. The directors nevertheless prepared the accounts on a going-concern basis.

Key Insights

Rasp’s September 2026 figures establish a higher quarterly processing level and silver production milestone for Broken Hill Mines Limited (ASX:BHM). Further reconciled quarterly figures, ore grades from Pinnacles and Main Lode, resource updates and completion of the tailings project will provide additional evidence about operational capacity and funding needs.

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