Polymetals Posts $36.8M Q1 FY27 Revenue as Silver Misses Plan, December Rebound Next
Key Takeaways
- Polymetals produced 230,256oz of silver and A$36.8M in revenue in Q1 FY27, well short of the 330koz plan after a 10-day ventilation shutdown and the shift to RND Resources contract labour.
- The first 11 days of October processed 17,622t and recovered 60,762oz of silver, an early sign the operational reset is working.
- First UML ore, at 234 g/t silver, 8.5% zinc and 6.0% lead, is expected in the December Quarter, with a 40,000 tonnes per month combined UML and UNL target.
- Only A$8.0M of the A$36.0M cash balance is unrestricted, with A$28.0M locked behind the Rehabilitation Bond and A$17.7M of debt outstanding.
- An updated Ore Reserve is due in the December Quarter and underpins a ~$50M financing facility targeted to close in H1CY2027.
Q1 FY27 preliminary results: 230,256oz silver and A$36.8M revenue
In its preliminary Q1 FY27 update (the September Quarter 2026), Polymetals Resources Ltd (ASX: POL) recorded 230,256oz of silver and A$36.8M in sales revenue from its Endeavor Mine in the Cobar Basin, New South Wales. The company processed 68,334t of ore.
Output came in below plan. Executive Chairman Dave Sproule said the quarter involved two deliberate decisions that weighed on production. Full reconciled figures are due in the September Quarterly Report later in October 2026, so treat these numbers as preliminary.
| Metric | Q1 FY27 preliminary | Plan |
|---|---|---|
| Ore processed | 68,334t | 93kt |
| Silver produced | 230,256oz | 330koz |
| Zinc produced | 1,713t | n/a |
| Lead produced | 1,146t | n/a |
| Revenue | A$36.8M | n/a |
Costs for the quarter were in line with previous quarters. Because of the shortfall, some planned production has moved into the December Quarter.
For investors, that means the gap was a timing issue the company is attempting to recover, not a change in the plan itself. Whether it does so is the test ahead.
Why output fell short
The announcement attributes the shortfall mainly to two factors:
- A 10-day suspension of underground mining to upgrade ventilation ahead of Upper Main Lode (UML) development, with a particular focus on managing sulphur gases generated within the mine.
- The transition to contract underground mining labour through RND Resources, expected to be completed by the end of calendar year 2026. Polymetals is retaining a number of its own mining personnel.
Sproule said the changeover disrupted mining during the quarter, but the company is already seeing a noticeable increase in productivity.
Dave Sproule, Executive Chairman
“…We recognise that confidence in Endeavor will be earned through consistent operating performance.”
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Balance sheet, Rehabilitation Bond and financing plans
At 30 September 2026, Polymetals held A$36.0M in cash, comprising A$8.0M of unrestricted cash and A$28.0M of restricted cash supporting the Rehabilitation Bond. Debt at quarter end was A$17.7M, and both cash and debt increased over the quarter.
The restricted cash sits in an interest-bearing Macquarie Bank account. In practical terms, only the A$8.0M is freely available for day-to-day operations.
The $28M Mine Rehabilitation Bond was exchanged in July, completed from cash flow, and was the final step in the acquisition of 100% of the Endeavor Project. The exchange saw the release of the Cobar real estate portfolio, independently valued at $19M, which includes 42 houses, 4 blocks of units (45 rooms total) and industrial land.
Offtake partner Ocean Partners provides concentrate prepayments and loan facilities that support Endeavor’s working capital requirements. The company said lower production and revenue, together with the need to cash-back the Bond, have increased the focus on disciplined working capital and cash management.
On financing, the company said it will progress to secure an enlarged financing facility (~$50M). The facility would enable cash to be released from the Bond as well as additional working capital flexibility, with the process planned to commence during the December Quarter and a targeted close in H1CY2027.
What is an Ore Reserve and why does it matter?
A Mineral Resource is an estimate of mineralisation in the ground. An Ore Reserve is the portion of that material that is economically mineable, which is why it matters for mine planning and for lenders assessing a project.
Polymetals is progressing an updated Ore Reserve estimate covering all Endeavor orebodies, following the Endeavor Mine 2026 Mineral Resource released on 7 September 2026. The update is planned for release during the December Quarter, and the company links the completed Ore Reserve statement to its progress on the ~$50M facility.
The current underground Mineral Resource (JORC 2012) is below. JORC is the Australasian code for reporting resources and reserves.
| Category | Mt | Zinc % | Lead % | Silver g/t |
|---|---|---|---|---|
| Measured | 5.9 | 7.6% | 4.6% | 82 |
| Indicated | 11.1 | 7.5% | 4.3% | 86 |
| Inferred | 3.7 | 7.4% | 3.1% | 70 |
| Total | 20.7 | 7.5% | 4.2% | 82 |
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December Quarter outlook and high-grade UML catalysts
Key points from the outlook include:
- October, first 11 days: 17,622t of ore processed, recovering 60,762oz of silver, 540t of zinc and 338t of lead, which the company described as providing early evidence of improving operating momentum.
- December Quarter plan: 105,000–115,000t of ore processed and more than 350,000oz of silver recovered.
- UML: First UML ore is expected during the December Quarter. The UML resource is 1.6Mt @ 234 g/t Ag, 8.5% Zn and 6.0% Pb.
- Mining rate: A combined minimum of 40,000 tonnes per month of high-grade ore is planned from the UML and Upper North Lode (UNL) areas, which would enable Endeavor to achieve its targeted metal output.
- Reserve and drilling: An updated Ore Reserve is scheduled for the December Quarter, near-mine drilling continues and regional drilling has commenced.
All underground personnel are now using respirators, ahead of the statewide implementation across NSW underground mines from 1 December 2026.
For investors, the December Quarter is the key proof point. Early October figures are only 11 days of data, so delivery against the 105,000–115,000t plan will show whether the operational reset is working.
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