SmallCaps Spotlight: Polymetals Resources (ASX: POL) — Endeavour mine restart, cashflow ramp and high-grade drilling

## Episode snapshot - **Who:** Linden Sproule, Polymetals Resources (ASX: POL) - **Topic:** Endeavour mine restart progress, production ramp-up, and high-grade drilling results

## Key themes ### 1) Deal milestone: Endeavour acquisition formally completed - Polymetals explains the long-running acquisition process, including the completion of the **environmental bond replacement/payment**. - With **100% ownership** now in place, the project is positioned to move forward without the prior senior security overlay.

### 2) Why Endeavour matters for the Cobar Basin story - Endeavour is a **long-history Cobar Basin mine** (discovered 1974; developed 1982; continuous operations until care and maintenance in 2020). - A major factor behind restart economics was resetting a previous **royalty structure** (from 100% silver streaming to a smaller **net smelter royalty** over silver, lead and zinc), helping restore mine viability.

### 3) Production ramp-up and early cashflow - Management highlights that the restart is now roughly around its **first year of production** and that the operation is still **ramping up**. - Polymetals also notes that the business delivered its **first quarter of net free cash flow** after months of production.

### 4) Mill capacity and “feeding the beast” - The mill has **nameplate capability of ~1.2Mtpa**, but the operation is currently running **~30–40% of nameplate**. - The team is looking to bring **additional ore sources** into the existing deposit and mill system.

### 5) High-grade main-load drilling: adjacent intercepts - Polymetals discusses strong high-grade drilling from the **main load**. - A key planning point: mineralised intercepts begin **very close to drill cuttings’ starting points** (adjacent positioning), supporting the case for **fast monetisation** into the mine plan. - The company is working towards an **updated resource**, then transitioning into **updated reserve and mine-plan** work.

### 6) Near-term planning and bottlenecks - The biggest operational bottleneck is framed as **securing enough ore feed** to match the mill’s capacity. - The company is de-risking through **underground drilling and mine-plan re-modelling**, with a focus on confidence to provide market guidance. - Management expects key technical work to complete **over the next ~two months**, supporting guidance development.

## What to watch over the next 90 days - **More drill releases** over the coming months following two recent drill updates. - **Updated resource/reserve and mine-plan outputs** feeding into how quickly additional mineralisation can be brought into production.

## Investor takeaway Polymetals’ near-term narrative is centred on turning high-grade drilling success at Endeavour into a clearer production pathway—supported by (1) a completed acquisition milestone, (2) mill capacity optionality, and (3) mine-planning work to enable stronger, more consistent guidance as the ramp progresses.

## Guest - **Linden Sproule** — Polymetals Resources (ASX: POL)

## Host - **James Whelan** — Small Caps

## Disclaimer

This podcast is for educational and entertainment purposes only and should not be considered financial advice. All investments carry risk, including the potential loss of principal. Listeners should conduct their own research and consider seeking professional financial advice before making investment decisions.

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