Broken Hill Mines Posts 148% Silver Jump in Q1 FY27 as Plant Throughput Hits 2020 High
Key Takeaways
- Silver production hit 102,922oz in the September 2026 quarter, up 148% year on year and the first quarter in the five-quarter series above 100,000oz.
- Rasp processed 129,084t, the highest since June 2020, yet that is only about 69% of the 750,000tpa plant capacity.
- Pinnacles has delivered its first clean high-grade bench, with up to 50,000t of ore remaining in the pit floor and trucking to Rasp (about 15km) underway.
- Zinc was the soft spot, down 9.2% on the June quarter to 3,024t, and all figures remain preliminary until the late October reconciliation.
- Catalysts ahead include Centenary's Exploration Target, further Pinnacles assays and a late-2026 MRE update drawing on more than 85,000m of drilling.
Q1 FY27 highlights: record throughput and 102,922oz silver
In its Q1 FY27 production update for the September 2026 quarter, Broken Hill Mines (BHM) recorded ore throughput of 129,084t at its Rasp Mine plant, the highest since June 2020. That equates to 516,000tpa on an annualised basis, or ~69% of plant capacity.
Silver production reached 102,922oz, the highest since June 2022. It is the first quarter in the five-quarter series above 100,000oz, which makes the silver production milestone the headline for the period.
The figures are preliminary. BHM said its full September 2026 quarterly production and financial data is scheduled for release in late October, pending completion of customary reconciliation.
Five-quarter production performance
The table below reproduces the Rasp preliminary plant performance data as presented by the company.
| Metric | Jun ’26 Qtr | Sep ’26 Qtr | Qtrly change | Annual change |
|---|---|---|---|---|
| Ore processed (t) | 119,320 | 129,084 | +8.2% | +10.1% |
| Silver production (oz) | 95,787 | 102,922 | +7.4% | +148% |
| Lead production (t) | 2,376 | 2,381 | +0.2% | +67.7% |
| Zinc production (t) | 3,330 | 3,024 | -9.2% | +4.9% |
Zinc was the one soft spot, falling 9.2% on the June quarter, though it remained 4.9% higher year on year.
The bigger story is silver, up 148% on the September 2025 quarter (41,479oz) while throughput rose 10.1%. For you as an investor, that gap suggests output is rising faster than the volume of ore going through the plant.
When big ASX news breaks, our subscribers know first
Pinnacles ramps up as multiple ore feeds come online
The restart of Pinnacles is the first operation at the site since 2020. Initial work focused on the existing Edwards Open Pit, where BHM mined and processed residual lower grade ore as part of clean up and pit redesign works.
The company has now accessed its first clean high grade bench of Pinnacles ore, and mining and trucking to Rasp (~15km away) has commenced. Significant mineralisation, up to 50,000t of ore, remains directly in the pit floor.
Since its listing in July 2025, BHM has established two additional ore feeds for the Rasp Plant, Main Lode and Pinnacles, alongside regular operations from Western Min. Centenary, which the company describes as a major new discovery of bulk tonnage ore, is a high potential fourth ore feed target.
The Centenary drilling results to date, including a thick high-grade intercept at the Rasp Mine, underpin the company’s view that the zone could become a fourth ore feed for the plant.
What catalysts are coming?
The company flagged several near-term items:
- Further Pinnacles drilling assays, for both open pit and underground targets, due for completion in the near term.
- Further Centenary drilling results and an Exploration Target, which BHM expects to finalise and release in the near term.
- An update to the Rasp and Pinnacles Mineral Resource Estimates (MREs) in late 2026, incorporating >85,000m of additional drilling completed by BHM to date.
An MRE is the formal estimate of how much mineralised material a deposit contains, so the update will show whether the drilling has added to the resource base.
How is Pinnacles structured?
BHM holds a binding joint venture agreement (HOA) for mining operations at Pinnacles. Under its terms, BHM is the exclusive operator, with mined ore transported to the Rasp plant for processing.
Profits are shared approximately 70% BHM / 30% Pinnacles via an agreed net smelter return calculation with applicable deductions.
How plant utilisation drives metal output
Metal output comes down to two inputs: how much ore goes through the plant, and how much metal that ore contains (its grade). Double either one and, all else equal, metal produced rises.
Plants also carry costs that do not shrink when throughput is low, so running closer to capacity generally spreads those costs across more output.
At about 69% of its 750,000tpa capacity, the Rasp plant has room to grow. BHM said quarterly average silver, lead and zinc grades are expected to grow with additional Pinnacles and Main Lode ore feed, including the opportunity for material gold and copper credits.
Market conditions are also supportive. BHM noted zinc and silver prices are significantly above long term averages, and treatment charges for zinc and lead concentrates remain negative, resulting in payments back to BHM for concentrate smelting.
The next major ASX story will hit our subscribers first
Funded for the FY27 expansion
BHM said its completed $85M capital raise has strengthened the balance sheet and provided optionality to expedite activities for increased metal production and sales. The announcement does not disclose pricing or terms for the raise.
The company said it maintains a clear pathway to full 750,000tpa plant utilisation, with the Tailings Dewatering Plant on budget and schedule for availability in 1H CY2027.
What should investors watch?
- Full quarterly production and financial data, due in late October
- The Rasp and Pinnacles MRE update, expected in late 2026
- The Centenary Exploration Target and further drilling results
- Further Pinnacles drilling assays
BHM’s stated outlook is that it is well positioned to unlock substantial latent capacity for metal production over the course of FY27, with multiple ore bodies ramping up to execute its throughput and grade expansion strategy. Because the September figures are preliminary, the late October reconciliation will confirm how firmly the numbers hold.
Don’t Miss the Next ASX Silver Breakout
Join 30,000+ investors getting FREE breaking ASX mining news within minutes of release, complete with in-depth analysis. Click the “Free Alerts” button at Big News Blast to stay ahead of the market and see the next silver and base metals mover the moment news breaks.