Larvotto Resources has secured a binding seven-year gold concentrate offtake agreement with global giant Glencore for its Hillgrove project, complementing an existing antimony deal and paving the way for production in August 2026.
- Seven-year gold concentrate offtake with Glencore
- Agreement complements antimony deal with Wogen Resources
- Glencore handles logistics on mine-gate basis
- Hillgrove production on track for August 2026
- Potential tungsten by-product offtake discussions underway
Glencore Secures Gold Concentrate Supply from Hillgrove
Larvotto Resources Limited (ASX:LRV) has inked a binding offtake agreement with commodity titan Glencore International AG for the sale of gold concentrate from its Hillgrove Antimony-Gold Project in New South Wales. The deal covers the first seven years of mining operations, with expected annual volumes of around 15,000 dry metric tonnes of concentrate.
Glencore’s selection follows a competitive tender process involving multiple international trading houses, underscoring the strong market interest in Hillgrove’s gold output amid sustained gold price strength. The agreement is structured on a mine-gate basis, meaning Glencore will manage all logistics from the mine to the end customer, while Larvotto will receive payment linked to London Bullion Market Association (LBMA) gold prices adjusted for contained gold content.
Completing Hillgrove’s Key Revenue Framework
This gold offtake deal complements Larvotto’s earlier agreement with Wogen Resources for antimony concentrate, effectively locking in the project’s primary revenue streams ahead of first production. Managing Director Ron Heeks highlighted that securing a globally recognised partner like Glencore marks a crucial milestone as Hillgrove transitions from development to operations.
With both gold and antimony concentrate marketing arrangements now in place, Larvotto is advancing steadily towards commissioning, which remains on schedule and budget for August 2026. This aligns with recent operational progress, including first ore delivery from the Metz underground mine, maintaining momentum towards full production capacity.
Potential Tungsten By-Product Adds Strategic Dimension
Larvotto is also pursuing metallurgical testwork for a tungsten concentrate by-product at Hillgrove, with offtake discussions anticipated as development activities progress. This could add another valuable revenue stream, especially given tungsten’s critical mineral status and record prices in recent months.
Glencore’s extensive experience in concentrate marketing and global customer networks offers Larvotto a strong platform to access international precious metals markets efficiently. The company’s Australian operations alone contributed $19 billion in 2025 and employ over 16,000 people, highlighting Glencore’s significant footprint in the region.
What’s Next for Larvotto and Hillgrove
With key offtake agreements secured and commissioning on track, Larvotto’s focus will likely turn to finalising contracts and progressing metallurgical testwork for tungsten. The project’s ability to deliver multiple concentrate products could position it well amid evolving commodity market dynamics. However, execution risks remain, including development timelines and commodity price fluctuations, which investors should monitor closely.
Bottom Line?
Securing Glencore as a gold offtake partner solidifies Larvotto’s revenue foundation at Hillgrove, but the path to production still hinges on timely commissioning and successful by-product development.
Questions in the middle?
- How will tungsten concentrate testwork outcomes influence Larvotto’s revenue mix?
- What are the risks to the August 2026 commissioning timeline amid ongoing development?
- How might fluctuations in LBMA gold prices impact Larvotto’s cash flow under the Glencore agreement?