Freehill Mining Raises $1.2M, Cuts Transport Costs by 40%, Eyes Sales Growth
Freehill Mining reported a transitional quarter marked by a dip in sales due to project cycles but offset by strategic site acquisitions and a successful capital raise. The company is poised for growth with new processing sites and promising magnetite test results.
- Quarterly sales declined 30% amid major project consumption cycle
- Raised approximately $1.2 million via placement and entitlement offer
- Secured two new aggregate processing sites near La Serena/Coquimbo
- Completed successful 65% Fe magnetite bulk sample at Yerbas Buenas
- Processing at second site expected to commence early August
Quarterly Performance and Financial Overview
Freehill Mining Limited (ASX, FHS) has reported a mixed quarterly performance for the period ending 30 June 2025. Gross sales fell to $419,000, down 30% from the previous quarter, primarily due to the consumption cycle of a major project the company supplies. Despite this, cash receipts for the 12 months to June surged to $2.4 million, more than tripling the prior year’s $735,000, signaling underlying growth in the business.
The company’s net cash used increased to $575,000, reflecting administrative and corporate costs carried over from the prior quarter and one-off expenses related to the set-up of new operational sites. However, Freehill has taken proactive steps to strengthen its balance sheet, successfully raising approximately $1.2 million through a non-brokered placement and entitlement offer.
Strategic Expansion with New Processing Sites
While operational delays pushed back the start of processing at the second site to early August, the company remains confident that these new sites will enable a substantial increase in sales volumes and operational efficiencies. The relocation is also expected to broaden Freehill’s supplier base, further driving down operating costs.
Advancements at Yerbas Buenas Magnetite Project
Freehill completed a successful bulk sampling program at its 100%-owned Yerbas Buenas magnetite mine, producing a concentrate with an iron grade exceeding 65%. This milestone provides a strong foundation for recommencing magnetite mining operations. The company is advancing mine planning, permitting, and capital expenditure assessments to restart production from the historical pit.
Further magnetic test work is planned to optimize concentrate grades by testing finer crush sizes. This progress not only demonstrates the project’s potential to off-takers and trading houses but also aligns with Freehill’s strategy to diversify into higher-value commodities.
Exploration and Outlook
Post-quarter, Freehill completed a sampling program at the El Dorado copper-gold-iron project, with assay results pending. The company is exploring low-capital, fast-start mining opportunities focused on copper and gold, signaling a strategic pivot towards higher-value commodities alongside its aggregates business.
Management remains optimistic about the company’s trajectory. CEO Paul Davies emphasized the importance of the new sites in consolidating Freehill’s market position and expects sales to rebound strongly as operations ramp up. Chairman Ben Jarvis highlighted that recent sales dips are cyclical and that customer demand remains robust.
Bottom Line?
With new sites nearing operation and promising project developments, Freehill is positioned for a sales rebound and cost efficiencies in the coming quarters.
Questions in the middle?
- How quickly will sales volumes ramp up once the new processing sites are fully operational?
- What will the final assay results from the El Dorado project reveal about its commercial potential?
- Can Freehill sustain cost reductions and margin improvements as it expands its aggregates footprint?