Freehill Mining’s aggregate materials sales surged in March, with quarterly sales up 60%, while the company prioritises mine planning and permitting for its Blanco y Negro copper-gold project.
- March aggregate sales increased 28% to $347,000
- Quarterly sales rose 60% to $923,000
- Major processing equipment installation underway to support growth
- Blanco y Negro project holds 1.5Mt resource with 1.4% Cu and 0.5g/t Au
- Focus on mine planning for initial 5,000 tonne monthly copper operation
Aggregate Sales Gain Momentum Amid Operational Upgrades
Freehill Mining Limited (ASX:FHS) reported a notable jump in aggregate materials sales for March, hitting $347,000; its second-best month ever and a 28% increase on February’s $271,000. The March quarter saw gross sales climb 60% to $923,000, reflecting steady operational improvements at its Islon and Yerbas Buenas sites in Chile’s Region IV. This growth comes despite ongoing plant reliability challenges that have caused unexpected downtime, underscoring the resilience of the aggregates business.
The company is currently installing major processing equipment that management expects will enhance plant uptime, expand customer reach, and improve margins. These upgrades follow a recent period of refurbishment that temporarily constrained capacity but laid the groundwork for this rebound. The trajectory aligns with the earlier plant upgrade and margin optimism Freehill reported in March, setting the stage for a scaled-up operation.
Blanco y Negro Copper-Gold Project Moves Toward Development
Parallel to its aggregates business, Freehill is advancing the Blanco y Negro copper-gold project, which boasts a JORC-2012 resource estimate of 1.5 million tonnes at 1.4% copper and 0.5 grams per tonne gold. This equates to approximately 20,000 tonnes of copper and 24,000 ounces of gold across granted exploitation leases, offering immediate tenure and logistical advantages due to proximity to existing copper operations.
The project’s resource is characterised by oxide-dominated mineralisation with open continuity, supporting potential resource growth through targeted infill and down-plunge drilling. Freehill is engaging with several parties, some with historical ties to Blanco y Negro, to progress mine planning and permitting for an initial start-up operation targeting 5,000 tonnes per month.
Management Highlights Strategic Dual-Track Approach
CEO Paul Davies emphasised the encouraging sales performance amid plant challenges and the focus on installing capital equipment to drive further growth. He described the aggregates business as a cash-generating foundation underpinning Freehill’s expansion into copper mining. Chairman Ben Jarvis echoed this sentiment, pointing to a clear pathway for scaling operations with healthy margins and the potential to develop the copper portfolio in the same region.
This dual strategy; leveraging a cash flow-positive aggregates platform while advancing copper-gold assets like Blanco y Negro and the Joshua and Samuel projects; positions Freehill to support disciplined project development. The company anticipates providing more regular operational updates as these initiatives progress.
Bottom Line?
Freehill’s strengthening aggregates sales and active copper project development signal a company balancing immediate cash flow with long-term growth ambitions.
Questions in the middle?
- How will the installation of new processing equipment impact Freehill’s aggregate sales and margins in coming quarters?
- What is the timeline and regulatory risk associated with permitting the Blanco y Negro copper-gold project?
- Can Freehill’s dual strategy sustain growth if copper market conditions shift or operational challenges persist?