Hillgrove Resources (HGO) H2 2024 earnings summary

Executive summary

• Transitioned to copper producer with first underground production at Kanmantoo in February 2024 and commercial production in July 2024.

• Produced 8,971 tonnes of copper and 1,813 ounces of gold in 2024, with strong organic growth and resource expansion.

• Achieved a 96% increase in contained copper and 138% increase in contained gold in the 2024 Mineral Resource estimate.

• Secured a $10 million standby debt facility to enhance financial flexibility.

• Appointed Bob Fulker as CEO and Managing Director in July 2024.

Financial highlights

• Revenue for 2024 was $112.4 million, up from $0 in 2023 due to the commencement of production.

• EBITDA reached $22.5 million, a turnaround from negative $14.1 million in 2023.

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

• Operating cash flow was $21.0 million, compared to a $9.5 million outflow in 2023.

• Total assets increased to $107.4 million, with net assets at $41.6 million.

• Cash and cash equivalents at year-end were $3.3 million.

Outlook and guidance

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

• Focus remains on ramping up production, improving cost efficiencies, and extending mine life through exploration.