Polymetals (ASX:POL) Announcement Overview

Polymetals Resources Ltd (ASX:POL) has successfully secured a Pre-payment / Loan facility of US$20 million (~A$30 million) to fund the restart of the Endeavor mine, along with favorable offtake terms for the delivery of zinc and silver-lead concentrates starting in H1 2025. The mine restart work has already commenced and is on track to generate cash flow during H1 2025, with a robust mine plan projecting a pre-tax NPV% of A$414m, IRR of 345%, and free cash flow of A$609m over the 10-year mine plan. The company has also established a strategic partnership with global commodity trader Ocean Partners, providing flexibility to pursue organic growth and other opportunities.

Executive Commentary

Completion of the project financing and offtake arrangement is the last hurdle in supporting the restart of Endeavor production, remaining on track for first concentrate output and cash flow during H1 2025. Surface and underground refurbishment work is underway, and we very much look forward to realizing the significant Endeavor asset with its substantive remaining ore reserves and exploration potential. The strategic partnership with Ocean Partners builds upon an existing 20-year relationship between us, with Endeavor being a perfect fit for our respective capability and experience. The intent is to build a platform for growth, and the flexibility provided by the Ocean Partners facility allows us to execute this strategy. The path to production is now secure, and we remain laser-focused on delivering on our commitment to our shareholders and the Cobar Region.

Summary and Outlook

Polymetals Resources Ltd (ASX:POL) has successfully secured funding and favorable offtake terms for the restart of the Endeavor mine, positioning the company to deliver cash flow during H1 2025. The strategic partnership with Ocean Partners provides flexibility to pursue organic growth and other opportunities, enhancing the company's growth prospects. With a robust mine plan projecting significant pre-tax NPV, IRR, and free cash flow over the 10-year mine plan, Polymetals is focused on realizing the substantial potential of the Endeavor asset. The company's strong exploration portfolio further underlines its commitment to long-term, profitable base and precious metal production, with potential for additional discoveries. The completion of the definitive documentation for the Prepayment / Loan facility and Offtake arrangement within the next 4 to 6 weeks will mark a significant milestone in the company's path to production.