Hillgrove Resources (HGO) Q1 2025 TU earnings summary

Executive summary

• Achieved commercial production at Kanmantoo in July 2024, with copper production rising 12% to 2,952 tonnes and copper recovery reaching 94.2%, driving a 92% increase in mine operating cash flow to $12.7 million for the March 2025 quarter.

• Declared maiden underground ore reserve and a 96% increase in copper mineral resource endowment in October 2024.

• Total liquidity increased to $20.5 million, supporting accelerated development at Nugent and regional growth initiatives.

• Appointed Bob Fulker as CEO, bringing experience from Evolution Mining and OZ Minerals.

Financial highlights

• Net revenue from metal sales reached $43.9 million for the March 2025 quarter.

• Operating cash flow of AUD 12.7 million for the quarter, with cash, receivables, and unsold concentrate totaling $20.5 million at quarter end.

• C1 operating cost was $4.19/lb; all-in sustaining cost (AISC) at A$5.47/lb (US$3.79/lb); all-in cost (AIC) reduced to $3.79/lb.

• Share price at $0.037, market cap $94M, cash balance $15M as of March 2025, and no debt.

• $18 million raised via placement and oversubscribed SPP to fund Nugent acceleration and exploration.

Outlook and guidance

• On track to deliver 2025 guidance of 12,000–14,000 tonnes copper at all-in cost of US$3.40–$3.90/lb, with June quarter copper production expected to exceed March.

• First ore from Nugent expected in December 2025 quarter; production capacity to increase ~25% to 1.8Mtpa in H1 2026.

• Major CapEx for Nugent acceleration to continue in the next quarter, normalizing after breakthrough in December quarter.

• 60,000 metres of resource and extensional drilling planned for 2025, targeting multiple exploration opportunities.

• Free cash flow generation expected to increase as CapEx drops in 2026 and production ramps up.