Hillgrove Resources (HGO) Noosa Mining Investor Conference summary

Strategic vision, positioning, and market context

• Aims to become Australia's next mid-tier, multi-asset copper producer, operating in South Australia with production from the Kanmantoo mine, and targeting near-term shareholder returns.

• Positioned to benefit from rising global copper demand driven by electrification, decarbonisation, and urbanisation, with a favorable supply gap due to declining global copper grades and underinvestment in new mines.

• Market capitalization seen as undervalued relative to growth opportunities and current production, with enterprise value at $88M, no debt, and $11M cash as of June 2025.

• Current EV/EBITDA ratio of 4x based on 2024 cash flow, with expectations for a market rerate and multiple catalysts identified for growth.

• Australian copper companies are in high demand, with ongoing sector consolidation.

Operational highlights, performance, and financials

• Owns 100% of the Kanmantoo Copper-Gold Mine, with underground production restarted in 2024 and first production achieved 18 months ago.

• Generated $19.1 million operating cash flow in H1/June 2025 half, investing $17.7 million in mine development.

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

• All-in cost (excluding Nugent) at US$4.10/lb, with costs expected to decrease as operations scale and new supplier contracts take effect.

• Guidance for CY25: 12-14kt copper at US$3.40-3.90/lb all-in cost.

Growth initiatives and exploration

• Newgen Acceleration Project and Nugent development to increase production by 25% and reduce costs by 15-20% by 2026, targeting a 1.7-1.8Mtpa run rate.

• Resource extensional drilling ongoing at Ballantyne, Critchlea, Cavanagh, Emily Star, Valentine, Kavanagh, and Nugent, with 20,000 meters/20km planned in 2025.

• 2024 Kanmantoo Mineral Resource Estimate: 19.3Mt at 0.77% Cu and 0.14g/t Au, a 96% increase in contained copper and 138% in gold since 2022.

• 2024 Maiden Ore Reserve: 2.8Mt at 0.91% Cu and 0.15g/t Au.

• Plant capacity at 3.6Mtpa, currently underutilized at 40%.