Hillgrove Resources (ASX:HGO) Announces Equity Raising and Production Guidance
Equity Raising
Hillgrove Resources is conducting a two-tranche placement to raise approximately $13 million. This involves issuing around 371.4 million new fully paid ordinary shares at $0.035 each. The funds will accelerate underground development at the Nugent deposit and extend mine life.
Operational Achievements
The company achieved a 1.4Mtpa ore mining rate, aiming for a 25% increase in ore processed. Ramp-up began in January 2024, with commercial production starting in July 2024. This generated $21 million in operating cash flow.
Financial Performance
For CY24, Hillgrove reported revenues of $112.4 million and operating cash flow of $21.0 million. EBITDA was $22.5 million. The net loss after tax was $24.0 million due to increased D&A and royalty revaluation.
Future Outlook
Hillgrove forecasts 2025 copper production of 12,000 to 14,000 tonnes at all-in costs of US$3.40 to US$3.90 per pound. The company plans to accelerate Nugent development to achieve a 1.7-1.8Mtpa run rate by 2026. Extensive exploration near the Kanmantoo mine will continue.
Sustainability
The company focuses on safety and environmental stewardship. The Total Recordable Injury Frequency decreased from 15.5 to 13.1 in CY2024. Hillgrove completed significant rehabilitation and engages stakeholders through the Callington Community Consultative Committee.
Motley Fool contributor Abbie Stokes has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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