Hillgrove Resources (HGO) 2025 Conference Transcript

Summary of Hillgrove Resources (HGO) 2025 Conference Company Overview - Hillgrove Resources is a copper producer based in South Australia, operating in a Tier one jurisdiction [4][5] - The company aims to grow into a mid-tier multi-asset copper and gold producer, generating cash flow today with multiple growth pathways [4][6] Core Industry Insights - Copper is essential for global decarbonization and electrification, with increasing demand driven by renewable energy, electric vehicles (EVs), and infrastructure development [4][9] - The average global mining head grade is declining, and many mines are aging, necessitating significant investment to meet future energy transition needs [10] - Hillgrove is positioned as one of the few ASX-listed companies actively producing copper to meet rising global demand [11][19] Financial Metrics - Hillgrove has a market capitalization that does not reflect its true value, with an EV to EBITDA ratio of only 3 to 4 times its 2024 earnings [6][19] - The company has AUD 18 million in franking credits and AUD 280 million in income tax losses available for future use [6] Production and Growth Strategy - The Cayman II copper-gold mine has recommenced underground mining, producing copper concentrate and shipping it globally [5][11] - The Nugent Acceleration Project is expected to increase production by 25% and reduce unit costs by 15-20% over the next 6-12 months [12][15] - Hillgrove plans to expand its exploration efforts, targeting four new mineralization zones, including the promising Emily Star zone with 2.6 million tonnes of existing resources [13][18] Operational Performance - As of June 1, 2025, Hillgrove had developed 11.5 kilometers underground and 470,000 tonnes of developed stocks, showing significant operational progress since starting 18 months ago [14] - The company reported an operating cash flow of AUD 19.1 million in the first half of the year, with AUD 17.7 million spent on capital development [16] Future Outlook - Hillgrove is focused on organic growth, with a sound mineral resource and ore reserve expected to be updated in Q4 2025 [17] - The company has an exploration target of 25 million to 40 million tonnes of copper, with ongoing drilling within the mine footprint [18] - Hillgrove is well-positioned to benefit from the anticipated supply-demand deficit in the copper market, with a strategic vision centered on operating excellence and disciplined growth [20]