Polymetals Positioned for Strong Cash Flow in H1 2025

2 min read | November 08, 2024 03:41 PM AEDT | By Team Kalkine Media

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Polymetals Positioned for Strong Cash Flow in H1 2025 — Image source: Shutterstock

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Highlights:

Polymetals Secures US$20 Million Funding: The company has secured a pre-payment loan facility from Ocean Partners to support the redevelopment of the Endeavor Silver-Zinc-Lead Mine.

Endeavor Mine Redevelopment Progressing: The funding will support the ongoing efforts to bring the Endeavor Mine back online, with first concentrate production expected in H1 2025.

Strong Mine History and Assets: The Endeavor Mine, acquired by Polymetals in 2023, has historically produced significant quantities of silver, zinc, and lead, and is equipped with a fully operational underground mine and processing plant.

Polymetals Resources (ASX:POL) has secured a significant pre-payment loan facility worth US$20 million (approximately $30 million) for the redevelopment of the Endeavor Silver-Zinc-Lead Mine in New South Wales. The loan, provided by Ocean Partners, is now available for Polymetals to draw upon as needed to meet capital requirements for the mine’s restart.

The company, with a market capitalisation of $144.1 million, has formalised the funding arrangement, marking a major step towards resuming production at the Endeavor Mine. Polymetals' Executive Chairman, Dave Sproule, confirmed that the company continues to meet its redevelopment objectives on schedule, with the senior management team focused on getting the Endeavor Mine back online. First concentrate production and cash flow are anticipated in the first half of 2025.

In conjunction with the loan agreement, Polymetals will issue Ocean Partners 2.5 million options, exercisable at $1 within 24 months. These options are part of the terms set for the funding arrangement.

The Endeavor Mine, located 40 kilometers north of Cobar in central-western New South Wales, has a long operational history, producing 2.6 million tonnes of zinc, 1.6 million tonnes of lead, and 92 million ounces of silver between 1982 and 2020. Silver, zinc, and lead are currently trading at favorable prices, with silver above US$32 per ounce, zinc priced at US$2,955 per tonne, and lead at $2,003 per tonne.

Polymetals acquired the Endeavor Mine in 2023, and the project is now poised for redevelopment with a fully equipped underground mine and a 1.2-million-tonne-per-annum processing plant in place. This redevelopment is a key part of Polymetals' growth strategy in the resources sector.

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