Key Highlights

  • Endeavor processed 40,790 tonnes of ore in October 2026, 79.1% above the September quarter monthly average.
  • Ore mined rose to 39,331 tonnes from a monthly average of 21,915 tonnes.
  • Silver recovered rose 19.7% to 91,905 ounces.
  • A US$10 million Working Capital Facility was added on 22 October, bringing the total to US$20 million.

Polymetals Resources (ASX:POL) processed 40,790 tonnes of ore at its Endeavor mine near Cobar in New South Wales in October 2026, 79.1% above the September quarter's monthly average of 22,778 tonnes. Ore mined rose to 39,331 tonnes from a monthly average of 21,915.

Metal output rose too. Silver recovered increased 19.7% to 91,905 ounces, zinc rose 58.8% to 907 tonnes and lead climbed 69.6% to 648 tonnes. The company valued October's concentrate at A$11.9 million, net of treatment and refining charges at average October prices.

The labour change behind it

Executive chairman Dave Sproule attributed the improvement to underground contract labour supplied by RND Resources, which he said had increased productivity. The transition reached about 77% of target in October and is on track for completion by the end of 2026, with RND personnel working alongside retained Polymetals employees.

Contract Mining can lift productivity quickly when a contractor brings experienced crews and equipment, though it typically comes at a higher unit cost than owner-operated mining. The the announcement did not include cost data, so the effect on margins is not yet clear.

Grades moved the other way

The tonnage gain came with lower grades. October silver grade was 99.3 grams per tonne, against a September quarter average of 156.5 g/t, while zinc fell from 3.2% to 2.7% and lead from 2.3% to 2.0%. Polymetals said this reflected blending of remaining 9750 Main Lode stope ore, which made up 70% of feed, with Upper North Lode ore.

Recoveries partly offset the lower grades, improving to 71% for silver, 82% for zinc and 80% for lead. That is why silver output rose by about 20% even though ore processed rose by almost 80%.

What is still needed

December quarter guidance is unchanged at 105,000 to 115,000 tonnes milled for more than 350,000 ounces of silver. October's 91,905 ounces is roughly a quarter of that target, so November and December need to deliver materially more silver per month.

The company expects higher grades to do the work. November ore is scheduled to come almost entirely from the high-grade Upper Lodes, and development of the Upper Main Lode began on 9 October, with 84.5 metres completed in the month and first development ore due in November. Sproule said the quarter was shaping up as forecast. Investors should treat the grade uplift as a plan until monthly results confirm it.

The diesel question

Polymetals also addressed fuel supply, a sensitive issue for miners given recent Volatility in oil markets. Endeavor uses less than 10,000 litres of diesel a day, and the company says Supply is secured through an established, large-scale distributor based in Dubbo. That reduces the risk of operational disruption, although fuel price movements still affect costs. No direct shipping ore was shipped in October.

Funding and risk management

On 22 October, Polymetals added a US$10 million working capital facility with offtake partner Ocean Partners, bringing the total to US$20 million, of which US$11.3 million was drawn at the end of October. The company also fixes metal prices at the time of concentrate prepayment, removing exposure to price falls during settlement periods of up to three months. That reduces downside risk but also limits upside if prices rise.

Exploration and next steps

Exploration drilling totalled 3,812 metres in October, including regional Reverse Circulation Drilling at Northern Cobar Basin targets such as No. 4 Tank and Boundary Tank, and near-mine drilling at PSX, two kilometres east of Endeavor.

An updated 2026 Ore Reserve is due this quarter, alongside rising Upper Lodes production and completion of the labour transition. An expanded reserve could support a longer mine life and financing options. The reserve update and November grades will show whether Endeavor can sustain both higher tonnes and stronger metal output.