Hillgrove Reports $167.6M Revenue and $26M EBITDA, Eyes 1.8 Mtpa Throughput

Financial Turnaround and Operational Progress

Hillgrove Resources Limited (ASX: HGO) has delivered a notable financial turnaround in 2025, posting a net profit after tax of $0.1 million compared to a $14.8 million loss in 2024. This improvement was underpinned by a 49% increase in revenue to $167.6 million, driven by higher copper and gold production volumes and favourable commodity prices. EBITDA rose to $26.0 million, reflecting disciplined cost management and operational efficiencies.

The company’s cash position strengthened significantly, closing the year with $21.0 million in cash, up from $3.3 million at the end of 2024. This robust liquidity supports ongoing operations and growth initiatives, with no drawn debt facilities at year-end.

Strategic Investments and Production Expansion

Capital investment totalled $40.3 million in 2025, focused on expanding copper and gold production capacity. A key milestone was the completion of the Nugent mining area development on schedule and within the $21 million budget. Nugent now serves as a second mining front at the Kanmantoo underground copper mine, enhancing operational flexibility and throughput.

Hillgrove has successfully ramped its mining run rate to over 1.5 million tonnes per annum (Mtpa), surpassing the 1.4 Mtpa target. The company aims to increase processing throughput to 1.7-1.8 Mtpa by the first half of 2026, leveraging the combined output from Kavanagh and Nugent mining fronts.

Advancing Growth Pipeline: Emily Star and Exploration

Looking beyond Nugent, Hillgrove is advancing the Emily Star deposit as a potential third ore source to support production beyond 1.8 Mtpa. Preparatory work, including the commencement of an exploration drive, is underway, with updated drill results expected in the first half of 2026. A Stage 2 investment decision for Emily Star is anticipated in the second half of 2026, contingent on positive drilling outcomes and economic assessments.

Additionally, the company is progressing near-mine and regional exploration across the broader Kanmantoo province, updating exploration targets to extend mine life and unlock further value.

Risk Management and Corporate Governance

Hillgrove maintains a strong focus on managing risks inherent to the mining sector, including commodity price volatility, foreign exchange fluctuations, operational hazards, and environmental compliance. The company’s governance framework, led by an experienced board and executive team, ensures disciplined oversight of financial and operational performance.

Notably, the company voluntarily restated prior period financials to reflect a revised accounting treatment of a royalty arrangement, enhancing transparency and aligning with accounting standards.

Capital Raising and Shareholder Value

In 2025, Hillgrove completed two equity raisings totaling $46 million at 3.5 cents per share, funding the Nugent acceleration, Emily Star exploration, and working capital requirements. Despite the improved financial results, no dividends were declared, reflecting the company’s commitment to reinvesting in growth.

CEO Bob Fulker highlighted the year as a defining period, laying the foundation for sustained growth and operational excellence. With a strengthened balance sheet and clear growth pathway, Hillgrove enters 2026 poised to deliver enhanced shareholder value.