Hillgrove Resources (HGO) Q2 2025 earnings summary

Executive summary

• Achieved key operational and strategic milestones, including a 10.7% increase in mine development to 2,011 metres and an 11.7% increase in tonnes processed to 353,000 tonnes compared to the previous quarter.

• Copper production decreased to just under 2,600 tonnes at a grade of 0.77% due to delayed access to higher-grade ore, tracking toward the lower end of full-year guidance.

• First ore from Nugent mined and processed ahead of schedule, with accelerated development to address production bottlenecks.

• Focused on execution, cost discipline, and proactive development to support long-term value creation and a strong operational base for the second half.

Financial highlights

• Net revenue from metal sales was $39.1 million for the June 2025 quarter.

• Produced just under 2,600 tonnes of copper for the quarter, with payable copper sold decreasing to 2,572 tonnes from 2,909 tonnes in the previous quarter.

• Average realized copper price increased to $14,340/tonne from $14,137/tonne sequentially.

• Operating mine cash flow was $6.4 million; net mine cash flow was -$4.8 million after $11.2 million in capital expenditure.

• Cash, receivables, and unsold concentrate totaled $24 million at quarter end, up from $20.9 million in March.

Outlook and guidance

• Mill throughput expected to increase from 1.4 million tonnes to 1.8 million tonnes in H1 2026.

• Full-year all-in cost guidance maintained at $3.40–$3.90 per pound, with expectations to remain at the higher end and excluding Nugent Acceleration project.

• Production expected to increase in future quarters as higher-grade zones are accessed and development capital reduces.

• Anticipates a step change in production and free cash flow as major capital works conclude in the next two quarters.

• Annual mineral resource and ore reserve update planned for Q4 2025.