Hillgrove Resources (HGO) Q4 2024 TU earnings summary

Executive summary

• Achieved record operational metrics at Kanmantoo, including development metres, ore tonnes mined, processed, and recoveries since underground operations began, setting a strong foundation for CY2025 operations.

• Ore mined increased 11% to 311kt, processed ore up 24% to 329kt, and copper production reached 2,637 tonnes at an all-in cost of US$3.97/lb.

• December quarter marked by lower copper production due to mining lower grade zones, in line with the block model, but set up for steady state production in 2025.

• Outstanding underground drilling results at Nugent, including high-grade copper and gold intercepts, support potential mine life extension and future growth.

Financial highlights

• Net revenue for the quarter was AUD 34.6 million, down 6% due to lower grades and production.

• Total site operating costs declined to AUD 23.45 million, down from AUD 35.7 million in the previous quarter.

• All-in cost per pound of copper was US$3.97 in Q4 2024 (Q3: US$3.71).

• Cash, receivables, and unsold concentrate at quarter-end totaled AUD 9.7 million.

• Company remains debt free with a AUD 10 million undrawn debt facility.

Outlook and guidance

• 2025 copper production guidance set at 12,000–14,000 tonnes, with all-in cost guidance of US$3.40–3.90/lb.

• Unit costs expected to improve as higher grade stopes are accessed and mining efficiency increases.

• Management aims to narrow cost guidance range mid-year as cost repeatability improves.

• Higher grade stopes expected to be accessed in Q1 2025, supporting increased production and revenue.