Hillgrove Resources met its 2025 copper production and cost guidance, boosted ore reserves by 43%, and outlined ambitious growth plans for 2026 including expanded mining at Nugent and Emily Star.
- 2025 copper production of 11,315 tonnes within guidance range
- 43% increase in ore reserves and 14% rise in mineral resources
- Nugent stope production commenced ahead of schedule
- 2026 copper production guidance raised to 12,750–14,000 tonnes
- Safety improvements with zero recordable injuries in December quarter
Strong 2025 Performance Anchors Growth
Hillgrove Resources has delivered a solid operational and financial performance for the year ended 31 December 2025, hitting its copper production target of 11,315 tonnes and maintaining all-in costs at the lower end of guidance. The company’s flagship Kanmantoo Copper Mine in South Australia saw a 5% increase in copper output in the December quarter, reaching its highest quarterly production of the year at 2,962 tonnes.
Operational efficiency gains were supported by steady underground development, with a record 2,116 metres advanced in the quarter, and mining and processing rates exceeding a 1.5 million tonnes per annum run rate. These improvements underpin Hillgrove’s confidence as it transitions into 2026.
Nugent Project Accelerates Production Capacity
A key highlight was the early commencement of Nugent stope production in October 2025, providing a second ore source that is expected to ease congestion at the Kavanagh ore body. The successful completion of the Nugent decline connection to Kavanagh in December further integrates the underground operations, enabling increased mining fronts and improved trucking efficiencies.
This development is pivotal to Hillgrove’s strategy to ramp up mining rates to 1.7–1.8 million tonnes per annum in the first half of 2026, which should drive down unit costs and enhance margins in the latter half of the year.
Resource Growth and Exploration Momentum
Hillgrove reported a 43% increase in its Ore Reserve Estimate to 4.0 million tonnes at 0.85% copper and 0.22 grams per tonne gold, containing 34,000 tonnes of copper and 29,000 ounces of gold. Mineral Resources also rose by 14% to 22 million tonnes, reflecting ongoing drilling success and improved geological understanding.
During the December quarter alone, the company completed 19,075 metres of drilling, contributing to a 2025 total of 69,215 metres, well above the annual target. Notable high-grade intercepts at Kavanagh, including up to 25 metres at 1.82% copper, highlight the potential for further resource expansion.
Looking ahead, Hillgrove plans an aggressive 63,000-metre drill program in 2026, focusing on underground and surface targets at Kavanagh, Nugent, and Emily Star. The Emily Star project, in particular, is earmarked as a potential third ore source, with up to 12,000 metres of underground drilling dedicated to exploring near-mine extensions.
Financial Position and 2026 Outlook
Hillgrove strengthened its balance sheet with a $28 million equity placement completed in September 2025, supporting ongoing development and exploration activities. The company ended the quarter with $20.6 million in cash and a total operating mine cash flow of $35.8 million for the year.
For 2026, Hillgrove has set copper production guidance between 12,750 and 14,000 tonnes at an all-in sustaining cost (AISC) of A$5.75 to A$6.25 per pound payable copper sold. Capital expenditure of A$8–10 million will focus on advancing Emily Star and North Kavanagh exploration inclines, alongside drilling programs designed to accelerate resource growth.
Safety and Sustainability Commitments
The December quarter marked a milestone with zero recordable injuries, reflecting the company’s ongoing commitment to workforce safety through targeted health and fatigue management programs. Hillgrove also continued its environmental stewardship with the Kanmantoo Grassy Woodland Revegetation Project, earning recognition for its habitat restoration efforts and community engagement.
CEO Bob Fulker emphasised the company’s disciplined approach, "Our focus remains on strengthening safety, maintaining cost discipline, prudently investing capital, and ramping up production while advancing exploration to extend mine life."
Bottom Line?
Hillgrove’s 2025 achievements and robust 2026 guidance position it well for growth, but investors will watch closely how exploration results and cost controls unfold amid rising production.
Questions in the middle?
- How will drilling results at Emily Star influence the decision on its Stage Two development?
- What impact will increased mining rates have on Hillgrove’s cost structure and margins in 2026?
- How sustainable are the recent cost improvements given one-off maintenance and stock write-offs?