Hillgrove Resources (HGO) Q2 2026 earnings summary

Executive summary

• Achieved fifth consecutive quarter-on-quarter increase in copper production, reaching 3,170 tons for the June 2026 quarter and sustaining a 1.8Mtpa run rate at Kanmantoo.

• Operating mine cash flow was AUD 23.3 million, with net mine cash flow of AUD 11.2 million after capital and rehabilitation expenses, and a 37% margin.

• Cash balance increased by 28% to AUD 32.2 million at quarter end, up AUD 7.0 million quarter-on-quarter.

• All-in sustaining cost (AISC) reduced to AUD 5.76 per pound, at the lower end of 2026 guidance.

• Emily Star development approved post-quarter, establishing a third underground mining front.

Financial highlights

• Revenue rose 18.4% quarter-on-quarter to AUD 63.8 million, driven by higher copper sales, prices, and increased by-product credits.

• Net group cash flow was AUD 8.3 million for the quarter, up 71% quarter-on-quarter.

• Average realized copper price increased to AUD 17,096 per ton.

• Mine operating costs increased 2.9% to AUD 40.4 million, mainly due to higher activity and fuel/transport costs.

• Sustaining capital expenditure rose to AUD 8.2 million, reflecting development at Nugent and Kavanagh.

Outlook and guidance

• On track to meet 2026 production and cost guidance, with full-year AISC expected at the lower end of the $5.75–6.25/lb range.

• Major capital guidance for 2026 increased to AUD 15–17 million, reflecting Emily Star and Mutooroo PFS costs.

• Production and cost guidance for 2026 reaffirmed, with higher gold grades anticipated in the second half due to Nugent ore.

• Emily Star development to commence stoping in the second half of 2027.

• All major 2026 capital programs to be funded from operating cash flow.