Hillgrove Resources Charts Growth Path at Noosa Mining Conference
Hillgrove Resources outlined its operational progress and growth strategy at the Noosa Mining Investor Conference, highlighting strong cash flow and resource expansion at its Kanmantoo Copper Gold Mine.
- Kanmantoo mine production steady with 2025 guidance reaffirmed
- Nugent development to boost throughput and reduce costs
- 96% increase in contained copper in 2024 Mineral Resource
- Cash flow generation of $19.1 million in June half
- Multiple exploration targets and resource expansion plans
Operational Momentum at Kanmantoo
Hillgrove Resources, the Australian copper producer operating the Kanmantoo Copper Gold Mine in South Australia, presented a comprehensive update at the Noosa Mining Investor Conference. The company reaffirmed its 2025 production guidance of 12-14 kilotonnes of copper and an all-in cost range of US$3.40-3.90 per pound, underscoring steady operational performance since commencing underground production in 2024.
With a market capitalisation just under $100 million and a cash balance of $11 million as of June 2025, Hillgrove is generating positive cash flow, reporting $19.1 million in operating mine cashflow for the June half. This financial footing supports ongoing development and exploration activities aimed at extending mine life and increasing production.
Nugent Development as a Growth Catalyst
The company is accelerating development at its Nugent underground project, targeting a throughput increase from the current 1.4 million tonnes per annum to between 1.7 and 1.8 million tonnes in 2026. This expansion is expected to reduce mining and processing unit costs by approximately 15-20%, enhancing operational efficiency and profitability.
Recent capital expenditure of $17.7 million in the June half was directed towards this development, alongside renegotiated contracts and contractor demobilisation to streamline costs. The Nugent project is positioned as a key catalyst for Hillgrove’s next growth phase, with early drilling focused on resource extensions at Nugent, Kavanagh, and other nearby targets.
Significant Resource Expansion and Exploration
Hillgrove highlighted a substantial increase in its mineral resource base, with the 2024 Kanmantoo Mineral Resource Estimate showing a 96% increase in contained copper and a 138% increase in contained gold compared to 2022 figures. The maiden underground Ore Reserve announced in late 2024 further solidifies the mine’s long-term potential.
Exploration plans for 2025 include approximately 20 kilometres of drilling aimed at expanding resources and testing depth extensions at key deposits such as Valentine, Emily Star, and Critchley. These efforts reflect a strategic focus on organic growth to underpin future production and value creation.
Positioning Within the Global Copper Theme
Hillgrove is well positioned to benefit from the global copper demand driven by electrification, decarbonisation, and urbanisation trends. The company emphasized the supply gap caused by declining ore grades and underinvestment in new mines, reinforcing the strategic importance of its Kanmantoo asset in a tier 1 jurisdiction.
With multiple re-rating catalysts on the horizon; including throughput expansion, resource updates expected in Q4, and ongoing operational improvements; Hillgrove aims to build a platform for sustained growth and increased market recognition.
Bottom Line?
Hillgrove’s disciplined growth and resource expansion set the stage for a pivotal 2025, with Nugent development and exploration results poised to drive the next market re-rate.
Questions in the middle?
- How will Nugent’s development timeline impact overall production ramp-up?
- What are the risks to achieving the targeted 15-20% reduction in unit costs?
- How might upcoming resource updates influence Hillgrove’s valuation and investor sentiment?
