Hillgrove Resources (HGO) Q4 2025 earnings summary

Executive summary

• 2025 copper production reached 11,315 tonnes, within guidance, with all-in costs at US$4.29/lb and strong operating cash flow of AUD 35.8 million.

• Major capital and sustaining investments expanded the mining footprint, setting up for increased production in 2026.

• Nugent stope ore production commenced ahead of schedule, connecting Nugent and Kavanagh mining areas and providing a second ore source.

• Highest quarterly copper production in Q4 2025 at 2,962 tonnes, a 5% increase quarter-on-quarter.

• Significant increase in Ore Reserve and Mineral Resource Estimates, supporting long-term growth.

Financial highlights

• December quarter operating mine cash flow was AUD 12.7 million, with a year-end cash balance of AUD 20.6 million.

• All-in costs for 2025 were US$4.29/lb, at the lower end of guidance, and AISC for Q4 was AUD 6.30/lb (US$4.03/lb).

• 3,121 tonnes of payable copper were sold in the December quarter at an average realized price of AUD 14,754 per tonne.

• Equity capital raise of AUD 28 million completed in September, with AUD 26.2 million net received.

• Gold and silver production increased 6% and 3% quarter-on-quarter, strengthening by-product credits.

Outlook and guidance

• 2026 copper production is forecast at 12,750–14,000 tonnes, with AISC set between AUD 5.75 and AUD 6.25 per pound.

• Major capital expenditure in 2026 is forecast at AUD 8–10 million, focused on Emily Star and North Kavanagh exploration.

• Mining rates expected to reach 1.7–1.8 million tonnes per annum in H1 2026, with cost reductions anticipated in H2 2026.

• Gold production is expected to rise significantly in 2026, especially in the second half due to higher grades from Nugent.

• Decision on Stage Two Emily Star development expected after H2 2026 drilling and assessment.