Hillgrove Resources (HGO) Q3 2024 TU earnings summary

Executive summary

• Achieved commercial production at Kanmantoo as of July 1, 2024, rejoining Australian copper producers and driving operational improvements across all metrics.

• Copper production rose 13% quarter-over-quarter to 2,923 tonnes, with mining and processing rates also increasing.

• Focused on ramping up production, improving efficiency, and engaging more with shareholders.

• Strong safety culture recognized with the Chairman's Award at the 2024 South Australian Mines and Emergency Response Competition.

• Maiden Ore Reserve and a 96% increase in copper Mineral Resource announced, highlighting significant growth potential.

Financial highlights

• Net revenue for the quarter was AUD 36.9 million from metal sales.

• Cash, receivables, and unsold concentrate totaled AUD 12.2 million at quarter end, with cash and cash equivalents at AUD 7.8 million.

• Operating cash flow for the quarter was AUD 3.2 million.

• Copper production at Kanmantoo reached 2,923 tonnes at an all-in cost of US$3.71/lb.

• C1 cash cost decreased to US$2.01/lb from US$2.16/lb in the previous quarter.

Outlook and guidance

• Expectation of continued strong copper demand driven by global trends and decarbonization.

• Production expected to increase further in coming quarters as development opens new mining areas.

• Additional financial flexibility secured via a AUD 10 million stand-by debt facility.

• Ongoing drilling and resource definition expected to further grow Mineral Resources.

• Focus on converting mineral resources to ore reserves and extending reserve life beyond two years.