Freehill Mining Boosts Quarterly Sales to $580,000, Cash Receipts Up 56%
Freehill Mining Limited reported a robust 46% increase in quarterly sales, driven by strong demand at its Islon aggregate site and steady contributions from Yerbas Buenas. Meanwhile, the company advances promising copper and gold project assessments.
- Quarterly gross sales rose 46% to $580,000
- Cash receipts increased 56% to $420,000
- Islon site sales ramp up steadily amid cement industry demand
- Plant capacity challenges addressed with maintenance and planned equipment upgrades
- Due diligence progressing on copper and gold projects with low capex potential
Sales Rebound Amid Operational Challenges
Freehill Mining Limited (ASX, FHS) has delivered a notable turnaround in its quarterly sales performance, with gross sales climbing 46% to $580,000 in the December 2025 quarter. This improvement follows a period of operational hurdles, including plant capacity constraints and equipment downtime, which the company is actively addressing through maintenance and recalibration efforts.
The steady month-on-month sales growth was largely driven by the Islon aggregate site, where demand from cement industry customers continues to build. Yerbas Buenas also maintained a solid contribution, underpinning the company’s aggregate business. Freehill’s strategy to build substantial stockpiles, approximately 30,000 cubic metres at quarter’s end, aims to ensure consistent supply and support ongoing deliveries.
Operational Investments and Financial Position
Despite increased production costs rising to $365,000 from $181,000 in the prior quarter, largely due to stockpile establishment, Freehill’s financial flexibility remains intact with receivables around $220,000. The company plans to invest in a second vertical impact crusher, additional trucks, and a sand washing circuit to boost processing capacity and margins, responding to demand that currently outpaces supply.
Managing Director Paul Davies expressed optimism about the trajectory, noting that resolving plant issues will enhance uptime and that the cement industry partnership offers considerable upside. The company’s cash receipts also rose 56% to $420,000, reflecting improved collections alongside sales growth.
Exploring New Horizons in Copper and Gold
Beyond aggregates, Freehill is advancing due diligence on several copper and gold projects near its existing operations. These opportunities are characterised by defined resources, low upfront capital expenditure, and near-term production potential, aligning with the company’s strategy to diversify and enhance its revenue base. Chairman Ben Jarvis highlighted the appeal of fast-start projects with exploration upside, signalling a strategic pivot towards higher-value commodities.
While the Yerbas Buenas magnetite project remains a core focus, the exploration of copper and gold assets could mark a significant expansion phase for Freehill, potentially reshaping its market positioning in the coming years.
Bottom Line?
Freehill’s operational improvements and strategic project assessments set the stage for sustained growth, but execution risks remain as plant upgrades and new ventures unfold.
Questions in the middle?
- How quickly can Freehill resolve plant capacity and uptime issues to meet rising demand?
- What are the timelines and capital requirements for the copper and gold projects under assessment?
- How will increased production costs impact margins as sales volumes grow?
