Australia's Abra silver-lead mine in Western Australia, which underwent administration in April 2024, was acquired by private equity firm Taurus Fund Management and is now operated by Endurance Mining, having achieved profitability. The silver price has doubled from its lows to around $85 per ounce, significantly improving the mine's economics. Endurance Mining plans an initial public offering (IPO) by the end of 2026, aiming to list on the ASX as a mid-tier, multi-asset silver mining company.
Since Taurus's involvement, Endurance Mining has invested capital to streamline operations, including completing upgrades to the surface workshop, camp, and roads. The December 2023 quarter report showed the mine achieved EBITDA of $19.5 million, free cash flow of $8.8 million, produced 253,000 ounces of silver and 19,800 tonnes of lead, with all-in sustaining costs falling to a record low of A$1.02 per pound. This makes Abra the sixth-largest silver mine in Australia, with other major silver mines controlled by international companies.
Managing Director Matthew Hine stated: "Taurus and management are motivated to take this asset to market. It makes sense. We want to build a sustainable business, and my thinking is multi-asset, two to four operating mines... History shows that's the sweet spot." In addition to expanding Abra, Endurance Mining is also seeking merger and acquisition opportunities to enhance its market competitiveness.
While the surge in silver prices has aided the business recovery, Hine noted its impact is limited: "Over the past six months, we have sold over 500,000 ounces of unencumbered spot silver, but you'll see the average price for the December quarter... was $50-$60 per ounce. In January, we sold at $110 per ounce, which is why this quarter will be better. Silver still only accounts for about 30% of our revenue." Most revenue comes from lead, whose price is near a five-year low. Hine is optimistic about a lead price rebound, expecting it to return to historical levels of $2,000-$2,100 per tonne.
On the ASX, silver producers are relatively scarce. Endurance Mining's IPO plan aims to fill this market gap while also focusing on popular commodity assets like copper and gold. Hine emphasized the strong long-term fundamentals of silver: "Industrial uses account for about 70% of demand. The supply side hasn't changed in five years, with most silver production being a co-product or by-product. Demand for silver used in AI is increasing; it's used in electrification. Samsung just announced a silver battery, currently a prototype, but they plan to commercialize it in 2027."
Endurance Mining has improved its offtake agreement with commodity trading giant Trafigura, extending it to December 2027 and optimizing payment terms. Abra's strategic importance is highlighted, with Hine saying: "Abra is a strategically important asset not just for the state but for the country. That was a driver in working with Trafigura." The mine's lead production this year is expected to surpass that of Glencore's Mt Isa mine, placing it among the top five globally.
Future expansion plans include studying the addition of a dense media separation circuit to improve grade and unlock value from low-grade stockpiles, with an estimated capital expenditure of $20 million. Endurance Mining also plans to explore surrounding areas for copper, gold, and silver resources. Hine added: "Some of the funds will be used to repay debt. We don't want to carry a heavy debt burden, and I think the market has that appetite. Taurus is certainly supportive of holding an equity stake for a period if necessary."
