Freehill Mining delivered a 47% jump in quarterly sales to $1.36 million, driven by aggregates growth and plant upgrades, while progressing copper exploration and a strategic partnership in Chile.
- Record quarterly gross sales of $1.36 million, up 47%
- Cash receipts increased 44% to $1.06 million
- Significant investment in plant and unprocessed stock
- Advancement of Blanco y Negro copper project with resource validation
- MOU signed with Austral Gold to explore Chile copper opportunities
Record Sales Surge Driven by Aggregates Expansion
Freehill Mining (ASX:FHS) smashed its previous quarterly sales records with gross sales hitting $1.356 million in Q2 2026, a 47% increase from the prior quarter. This marks the third consecutive quarter of growth, underpinned by strong performances at its Yerbas Buenas and Islon aggregates operations. Cash receipts climbed 44% to $1.058 million, reflecting robust customer demand despite recent regional flooding disruptions.
The company’s Yerbas Buenas site continues to deliver consistent sales and superior margins, while Islon’s output steadily climbed, with production volumes up 49% on Q1. This momentum was supported by operational improvements and the commissioning of a new Vertical Shaft Impact Crusher (VSI), which has enhanced processing capabilities and throughput.
Investing in Capacity and Inventory to Meet Demand
Production costs rose to $944,000 from $620,000 in the previous quarter, largely due to increased volumes and a strategic purchase of unprocessed stock from third parties. A recent drone survey at Islon valued this stockpile at over $2 million in potential future gross sales, positioning Freehill to meet growing customer demand without immediate production ramp-up.
Capital expenditure during the quarter reached $278,000, including the acquisition of the VSI crusher, a Komatsu excavator, and conveyor belt enhancements. These investments aim to improve plant performance and operational efficiency, with ongoing efforts to optimise logistics, transport, and energy supply expected to drive further margin improvements.
Progress on Blanco y Negro Copper-Gold Project
On the exploration front, Freehill advanced its Blanco y Negro copper-gold project, which hosts a JORC-2012 compliant mineral resource estimate of approximately 1.5 million tonnes at 1.4% copper and 0.5 grams per tonne gold. The contained metals equate to roughly 20,000 tonnes of copper and 24,000 ounces of gold.
The company’s consulting geologist completed a thorough review and validation of the project’s historical geological data and block model, confirming the continuity and grade distribution of mineralisation. This technical groundwork supports upcoming underground mine planning and permitting activities. Freehill is also evaluating third-party processing options nearby, potentially reducing capital expenditure and accelerating development timelines.
Strategic Partnership with Austral Gold
Post-quarter, Freehill signed a non-binding Memorandum of Understanding (MOU) with Austral Gold Limited (ASX:AGD), a leading South American gold mining company. The partnership aims to jointly assess copper mining and exploration opportunities in Chile, leveraging Austral Gold’s operational expertise and local regulatory experience to de-risk and expedite Freehill’s copper portfolio development, including the Joshua porphyry and Blanco y Negro projects.
While the MOU remains subject to due diligence and negotiation of definitive agreements, it signals Freehill’s intent to accelerate its copper ambitions alongside its cash-generating aggregates business.
Flooding Impact and Operational Resilience
July’s severe flooding across the La Serena and Coquimbo region caused widespread infrastructure damage and temporary disruption to Freehill’s operations. However, the company’s proactive preparations protected its sites and equipment. Management expects operations to resume shortly, maintaining dialogue with customers and suppliers to minimise ongoing impact.
Freehill’s Managing Director Paul Davies highlighted the operational discipline and steady production growth achieved despite these challenges, noting the aggregates business as a foundation for advancing mining projects. Chairman Ben Jarvis praised the management team for top-line growth and strengthening regional reputation, emphasizing the strategic copper projects’ progress as a key driver of shareholder value.
Bottom Line?
Freehill’s aggregates business is scaling rapidly, underpinning its copper project ambitions, but upcoming quarters will test how well operational improvements and the Austral Gold partnership translate into sustained cash flow and development progress.
Questions in the middle?
- How will Freehill manage supply chain and energy costs amid production growth?
- What timelines can be expected for definitive agreements following the Austral Gold MOU?
- How significantly will recent flooding affect medium-term sales and project schedules?