Hillgrove’s Copper Output Rises 8% as $28M Placement Fuels Expansion

Operational Milestones at Nugent

Hillgrove Resources has reported significant progress in the September 2025 quarter, highlighted by the early commissioning of the Nugent Production Centre. Underground development reached 1,379 metres, establishing the 1020 level and unlocking approximately 50,000 tonnes of stope ore for extraction in the December quarter. This advance positions Hillgrove to increase throughput at its Kanmantoo processing plant by around 25% by mid-2026, a substantial boost to its copper production capacity.

Improved Production and Cost Efficiency

The operational ramp-up translated into an 8% increase in copper production quarter-on-quarter, reaching 2,808 tonnes. This was supported by a 12% rise in ore mined and improved grade and recovery rates. Concurrently, the company achieved a 10% reduction in gross all-in sustaining costs, marking the lowest quarterly expenditure to date. These gains reflect enhanced underground development and load-haul productivity despite some workforce and equipment challenges.

Exploration Success Bolsters Growth Pipeline

Hillgrove’s exploration efforts delivered promising results, particularly at the Emily Star and Nugent deposits. Initial underground drilling at Emily Star intersected high-grade copper-gold mineralisation, including notable intercepts such as 19.1 metres at 1.91% copper and 0.15 grams per tonne gold. Nugent drilling confirmed extensions of high-grade mineralisation, providing valuable data for mine planning and resource expansion. These findings support the company’s strategy to extend mine life and develop a third mining front.

Capital Raising to Fuel Development

To underpin its growth ambitions, Hillgrove successfully completed a $28 million placement at $0.035 per share, attracting strong support from both Australian and international institutional investors. The proceeds will primarily fund the completion of Nugent development, advance drilling and development at Emily Star, and support working capital requirements. The placement was executed in two tranches, with shareholder approval pending for the second tranche.

Sustainability and Community Engagement

Beyond operational achievements, Hillgrove was recognised as a finalist for the Premier’s environmental award, acknowledging its Kanmantoo Grassy Woodland Revegetation Project and Habitat Corridor Initiative. These programs exemplify collaboration with the local community to restore endangered ecosystems and create continuous habitats for native flora and fauna, reinforcing the company’s commitment to sustainable mining practices.

Financial Position and Outlook

While cash reserves declined to $15.6 million due to capital investments in development and exploration, liquidity remains sufficient to support ongoing operations. The company updated its FY25 copper production guidance to 11,000-11,500 tonnes, reflecting operational realities and strategic sequencing of ore bodies. With Nugent stope production commencing in October, Hillgrove is well positioned to increase mining rates and further reduce unit costs in the coming quarter.