Hillgrove Resources (HGO) H2 2024 earnings summary

Executive summary

• Achieved first underground copper production at Kanmantoo in February 2024, reaching commercial production by July 2024, marking a major operational milestone.

• Produced 8,971 tonnes of copper and 1,813 ounces of gold in 2024, with strong organic growth and a 96% increase in contained copper resources.

• Appointed a new CEO and Managing Director, Bob Fulker, in July 2024, bringing extensive operational experience.

• Focused on sustainability, including a 14% reduction in TRIF, elimination of onsite diesel generation, and significant progress in revegetation and community engagement.

Financial highlights

• Revenue for 2024 was $112.4 million, driven by copper, gold, and silver sales.

• EBITDA reached $22.5 million, a turnaround from negative EBITDA in 2023.

• Net loss after tax was $24.0 million, compared to a $16.3 million loss in 2023, impacted by high depreciation, amortisation, and finance costs.

• Operating cash flow was $21.0 million, reflecting the commencement of production.

• Total assets increased to $107.4 million, with net assets of $41.6 million at year-end.

Outlook and guidance

• Copper production for 2025 is forecast at 12,000–14,000 tonnes, with all-in costs expected to improve to US$3.40–3.90/lb.

• Focus remains on ramping up production, cost efficiencies, and further exploration to extend mine life.

• Positioned to benefit from robust copper market demand driven by the global energy transition.