Hillgrove Resources (HGO) Diggers & Dealers Mining Forum 2025 summary

Strategic vision, positioning, and market context

• Aims to become a mid-tier, multi-asset copper producer in Australia, leveraging a strong operational base and organic growth opportunities.

• Operates in a Tier 1 jurisdiction near Adelaide, with no debt and $11M cash as of June 2025.

• Market capitalisation is $94M with an enterprise value of $83M; major shareholders include Freepoint Metals & Concentrates (18.9%) and Ariadne Australia (10.3%).

• Positioned to benefit from global copper demand driven by decarbonization, electrification, and urbanisation, with copper demand forecast to rise 70–100% by 2050.

• Sees current market capitalization and EV/EBITDA ratio as undervaluing the business, especially with ramp-up and future earnings.

Operational highlights and financials

• Owns 100% of the KEMIN II (Kanmantoo) copper-gold mine, transitioned to underground mining in 2024, with first production achieved.

• Produced 5,545t copper, 1,285oz gold, and 44,501oz silver from 669kt at 0.88% Cu in the June 2025 half.

• Generated $19.1M operating mine cashflow in H1 2024/June 2025 half, with $17.7M invested in development.

• All-in cost (excluding Nugent) was US$4.10/lb, with costs expected to decrease as operational improvements and contract renegotiations take effect.

• Guidance for CY25 is 12–14kt copper at US$3.40–3.90/lb all-in cost, with Nugent development expected to reduce unit costs by 15–20%.

Growth initiatives and exploration

• Accelerating Nugent development to achieve a 1.7–1.8Mtpa run rate in 2026, with early breakthrough of the Nugent Decline.

• Nugent acceleration initiative targets a 25% production increase and 15–20% cost reduction within 6–12 months.

• 20,000 meters of exploration drilling in 2024 and 20km planned in 2025, targeting expansion at Valentine, Kavanagh, Nugent, and Emily Star.

• 2024 Kanmantoo Mineral Resource Estimate: 19.3Mt at 0.77% Cu and 0.14g/t Au, containing 150kt Cu and 82koz Au—a 96% increase in copper and 138% increase in gold from 2022.

• 2024 Maiden Ore Reserve: 2.8Mt at 0.91% Cu and 0.15g/t Au, containing 26kt Cu and 14koz Au, with economic extraction planned from Sept 2024 to April 2027.