Hillgrove Resources Limited · ASX:HGO
Hillgrove Resources — Investor Presentation (March 2025)
35 slides from Hillgrove Resources's investor presentation, Mar 5, 2025
Slide 1: Investor Presentation - Revised
5 March 2025 INVESTOR PRESENTATION - REVISED Hillgrove Resources Limited (ASX: HGO) (Hillgrove or Company) encloses a revised Investor Presentation dated 5 March 2025. Hillgrove advises that figures and footnotes have been included in slides 18 and 19 referencing the Company’s announcement ‘Maiden K
Slide 2: An Australian Copper Producer
An Australian Copper Producer Investor Presentation Accelerating Nugent Production March 2025 Bob Fulker Managing Director 1
Slide 3: Hillgrove Overview
Hillgrove Overview ASX:HGO | Investor Presentation | March 2025 2
Slide 4: An Australian copper producer
An Australian copper producer Well positioned to benefit from a robust copper outlook Operating the Kanmantoo Mine and 3.6Mtpa Tier 1 Jurisdiction plant in the mining friendly State of SA, 1 hour drive from Adelaide 2025 Guidance: Generating cash flow • 12,000 – 14,000 tonnes of copper • All-in Cost
Slide 5: Corporate snapshot
Corporate snapshot An Australian copper producer Market Statistics Major Shareholders Share price1 $0.040 Freepoint Metals & Concentrates 20.0% Shares on issue 2,095M Ariadne Australia 10.3% Market capitalisation $84M Debt Nil Board & Management Cash2 $3M Derek Carter Chairman Enterprise value $81M
Slide 6: Kanmantoo
Kanmantoo A well-established copper asset ▪ Long legacy of positive stakeholder engagement ▪ Residential workforce ▪ Underground bulk mining (stoping) method ▪ Well capitalised infrastructure ▪ Plant capacity: 3.6Mtpa ▪ Tailings Storage Facility permitted for 6.0Mt ▪ Power and water supply secured ▪
Slide 7: Sustainability
Sustainability Critical minerals for a sustainable future ▪ Total Recordable Injury Frequency (TRIF) trending lower from 15.5 to 13.1 in CY2024 ▪ Long track record of environmental stewardship with significant progressive rehabilitation completed ▪ Award winning stakeholder engagement model through
Slide 8: Underground mining LOM
Underground mining LOM Increasing optionality to achieve reliable production ▪ 1.4 Mtpa ore mining rates achieved with record ore movement in January 2025 ▪ Kavanagh and Spitfire are current ore sources providing positive operating cash flow ▪ Nugent orebody access under development Nugent through b
Slide 9: Mining
Mining Simple mining techniques ▪ Very stable ground and favourable orebody geometry (75o dip) leading to minimal dilution and recovery loss ▪ Orebody has low grade halo reducing impact of any dilution ▪ Top down uphole longhole open stoping – low technical risk ▪ No backfill of stopes required for
Slide 10: Processing
Processing Easily recovered ore, existing infrastructure ▪ Excess capacity in 3.6Mtpa plant – currently only operating for 50% of time. Additional capacity available at $9/t variable cost ▪ Coarse grind size – target P80 of 212µm ▪ Significant institutional knowledge in processing team from Open Pit
Slide 11: Continuing the operationally successful production restart
Continuing the operationally successful production restart Physical metrics continuing to ramp up Monthly Development Rates (m) Monthly Ore Mined (kt) Commercial Production Commercial Production 576 116 540 104 468 467 93 413 70 41 Q1-24 Q2-24 Q3-24 Q4-24 Jan-25 Q1-24 Q2-24 Q3-24 Q4-24 Jan-25 Monthl
Slide 12: Large Mineral Resource endowment
Large Mineral Resource endowment Improving visibility on mine life ▪ Kanmantoo 2024 Mineral Resources1: 19.3Mt grading 0.77% Cu and 0.14g/t Au containing 150kt Cu and 82koz of Au Compared to 2022 MRE2 this represents a: ▪ 96% increase in contained copper ▪ 138% increase in contained gold ▪ Opportuni
Slide 13: Organic growth
Organic growth Significant near mine Mineral Resource growth opportunities ▪ Investment in resource definition and extensional drilling delivering strong results ▪ Over 19,000 metres of diamond drilling planned from Kanmantoo Underground testing Exploration Targets1 ▪ All targets within 500m of Kanm
Slide 14: Organic growth
Organic growth Significant near mine Mineral Resource growth opportunities ▪ ~60,000 metres of drilling planned for 2025 budgeted to focus on1: ▪ Resource to Reserve conversion in Kavanagh and Nugent ▪ Resource definition in Nugent, including defining high grade target currently outside of Reserve ▪
Slide 15: CY24 Financials
CY24 Financials Strong EBITDA delivery Profit and Loss and Cash Flow CY24 ($M) CY23 ($M) Change ($M) Revenues 112.4 - 112.4 Operating Cash Flow 21.0 (9.5) 30.5 EBITDA 22.5 (14.1) 36.6 EBIT (9.4) (14.8) 5.4 Net Loss After Tax (24.0) (16.3) (7.7) Profit and Loss and Cash Flow ▪ Operating cash flow of
Slide 16: Consistent Free Cash Flow Generation
Consistent Free Cash Flow Generation ASX:HGO | Investor Presentation | March 2025 15
Slide 17: Accelerating Nugent Development
Accelerating Nugent Development Building blocks to consistent positive free cash flows To Date Current Focus 2025 Growth Foundations Built Cost & Grades Nugent Development Beyond Nugent Maintain the 1.4Mtpa Accelerating development of 1.4Mtpa run rate achieved Nugent to achieve 1.7-1.8Mtpa Initial D
Slide 18: Operating Cash Flows
Operating Cash Flows Positive operating cash flows 2024 Operating and Investing Cash Flows (Split By Half) Operating cash flow activities are expected to increase A$20m through CY25 onwards due to: ▪ Increasing Cu production A$15m ▪ CY25 guidance of 12-14kt (up 33% to 55% on A$10m CY24 production) O
Slide 19: Accelerating Nugent Development
Accelerating Nugent Development Growing to fill the available mill capacity ▪ 1.4Mtpa annualised mining rates achieved in January 2025. Plant has capacity for 3.6Mtpa ▪ 1.7 to 1.8Mtpa of available plant capacity with current resourcing onsite ▪ Existing Nugent Resource is expected to support deliver
Slide 20: Accelerating Nugent Development
Accelerating Nugent Development Debottlenecking Kavanagh Mine ▪ Increased development resourcing in Kavanagh while additional crew operating in Nugent ▪ Development sprint will break the cycle of interactions between production and development which has been limiting mining rates ▪ De-risks the curr
Slide 21: Accelerating Nugent Development
Accelerating Nugent Development Compelling reasons to accelerate development of Nugent ▪ Significant financial benefits in the form of: ▪ Circa 20% lower mining unit costs ▪ Circa 15% lower processing unit costs ▪ Increased efficiency – separate levels for bogging, development, production drilling,
Slide 22: Equity Raising Summary
Equity Raising Summary ASX:HGO | Investor Presentation | March 2025 21
Slide 23: Equity Raising Summary
Equity Raising Summary $13 million in a Two Tranche Institutional Placement ▪ Two-tranche Placement to raise approximately $13 million via the issue of approximately 371.4 million new fully paid ordinary shares in Hillgrove (“New Shares”) (representing ~17.7% of shares currently on issue) to profess
Slide 24: Sources and Uses of Funds
Sources and Uses of Funds Proceeds will be used to expand underground development and to grow mine life Accelerate Nugent Development Sources & uses of funds ▪ Additional development meters underground Sources of funds $m to open up new mining areas Placement 13.0 ▪ Bring forward ore from Nugent to
Slide 25: Equity Raising Timetable
Equity Raising Timetable Summary of Key Dates Time / Date (2025) Trading Halt Monday, 3 March Placement bookbuild conducted Monday, 3 March Record date for SPP 7:00pm (AEDT), Tuesday, 4 March Trading halt lifted, announce completion of Placement Wednesday, 5 March SPP Offer opens and booklet made av
Slide 26: Disclaimer and Risks
Disclaimer and Risks ASX:HGO | Investor Presentation | March 2025 25
Slide 27: Important Notice and Disclaimer
Important Notice and Disclaimer Summary information This presentation contains summary information about Hillgrove Resources Limited (Hillgrove or the Company) and its activities as at 3 March 2025. The information in this presentation is of a general nature and does not purport to be complete nor d
Slide 28: Important Notice and Disclaimer
Important Notice and Disclaimer Future performance (continued) Such statements are only expectations or beliefs and are subject to inherent risks and uncertainties which could cause actual values, results or performance achievements to differ materially from those expressed or implied in this presen
Slide 29: Important Notice and Disclaimer
Important Notice and Disclaimer Competent person’s statement (continued) The information in this report that relates to planned drilling opportunities was extracted from the ASX release titled ‘2025 Kanmantoo Exploration Target Update’ previously released on the 13 Feb 2025 and is available to view
Slide 30: Investment Risks
Investment Risks Potential investors should be aware that there are risks associated with investing in Hillgrove. Certain risks are beyond the control of Hillgrove and its Directors and Management and may have a material impact on Hillgrove's future operating and financial performance, and/or the fi
Slide 31: Investment Risks
Investment Risks • The ability of the Company to achieve its objectives will depend on the performance of the counterparties to its key contracts, including its offtake agreements and key services and supply contracts. There is a risk of default by a counterparty or a risk of financial failure of ma
Slide 32: Investment Risks
Investment Risks • The future success of the Company depends, to a significant extent, upon the continued services of the members of the management team of the Key person Company. There can be no assurance that the Company will be able to retain or hire all personnel necessary for the development an
Slide 33: ASX:HGO | Investor Presentation | March 2025
ASX:HGO | Investor Presentation | March 2025 32
Slide 34: Kanmantoo Mineral Resource
Kanmantoo Mineral Resource Notes: Tonnage Cu Au Ag Bi Cu Metal Au Metal 1. Due to effects of rounding, total numbers may not Mine Area JORC Classification sum. (kt) (%) (g/t) (g/t) (ppm) (kt) (koz) 2. Tonnage and metal are rounded to the nearest 1,000 tonnes, grades are rounded to 2 significant figu
Slide 35: Kanmantoo Ore Reserve
Kanmantoo Ore Reserve Tonnes Cu Cu Metal Au Metal Mine Area JORC Classification Au (ppm) Ag (ppm) Bi (ppm) (kt) (%) (kt) (koz) Proved 1,100 1.01 0.04 2.82 220 12 1 Kavanagh Probable 1,000 0.88 0.15 2.7 140 9 5 Proved + Probable Kavanagh Total 2,100 0.95 0.09 2.76 180 21 6 Proved - - - - - - - Nugent
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