Hillgrove Resources Limited · ASX:HGO
Hillgrove Resources — Investor Presentation (February 2024)
28 slides from Hillgrove Resources's investor presentation, Feb 19, 2024
Slide 1: Investor Presentation (ASX announcement cover)
Monday, 19 February 2024 INVESTOR PRESENTATION With the commencement of copper production and first revenues, completing the Company’s transition from an explorer and developer to a cash generating producer, the Company is pleased to release an updated investor presentation. Please refer to the atta
Slide 2: Australia's Newest Copper Producer
For personal use only AUSTRALIA’S NEWEST COPPER PRODUCER Lachlan Wallace CEO & Managing Director February 2024 1
Slide 3: Important Notice & Disclaimer
IMPORTANT NOTICE & DISCLAIMER No investment or financial product advice The information contained in this presentation does not constitute investment advice or financial product advice (nor taxation or legal advice) and is not intended to be used as the basis for making an investment decision or as
Slide 4: Important Notice & Disclaimer
IMPORTANT NOTICE & DISCLAIMER No warranty While care has been taken in preparing the information in this presentation, no representation or warranty, express or implied, is made as to the currency, accuracy, reliability, completeness or fairness of the information, opinions and conclusions contained
Slide 5: Copper Production Underway… Now for Growth
COPPER PRODUCTION UNDERWAY… NOW FOR GROWTH ✓ Copper production delivered on schedule in Q1-24 For personal use only ✓ Costs in line with plan ✓ First cash from copper sales received ✓ Production profile ramping up as underground development opens more stopes ✓ Now focused on growing the mine life by
Slide 6: Corporate Snapshot
CORPORATE SNAPSHOT Company Overview Investment Highlights For personal use only • ASX listed (‘HGO’) Australian resources company that owns and ✓ One of the only copper producers on the ASX operates the Kanmantoo Copper Gold Mine in South Australia ✓ Multiple opportunities to increase resource base,
Slide 7: Tier 1 Jurisdiction
TIER 1 JURISDICTION ✓ 55km from Adelaide For personal use only ✓ Access to market via Port Adelaide, only 70km from site where mine receives 95% of proceeds. ✓ Local workforce ✓ Supportive government that understands value that Resources Top 10 jurisdiction sector provides to the State’s economy. St
Slide 8: Delivering Benefit to Local Community
DELIVERING BENEFIT TO LOCAL COMMUNITY ✓ Community support built over 20 years of genuine engagement For personal use only 7
Slide 9: Existing Infrastructure
EXISTING INFRASTRUCTURE ✓ 3.6Mtpa processing plant. For personal use only ✓ TSF with sufficient capacity for Stage 1 mine plan plus a further 3Mt. ✓ 360m deep pit enabling fast low- cost access to mineral lodes. ✓ Combined infrastructure at Kanmantoo cost >$200m in ~2010. 8
Slide 10: Two Stage Strategy - 1. Generate Cash, 2. Grow
TWO STAGE STRATEGY - 1. GENERATE CASH, 2. GROW STAGE 1 For personal use only ✓ Maintain infrastructure in operational state to keep capital hurdle for underground low. ✓ This resulted in underground being one of the lowest capital intensive copper development projects in the world. ✓ Maintaining the
Slide 11: Two Stage Strategy - 1. Generate Cash, 2. Grow
TWO STAGE STRATEGY - 1. GENERATE CASH, 2. GROW Current Mine Plan STAGE 2 For personal use only ✓ Focus on returning to cash generation quickly limited drilling to only 2 mineral lodes, Kavanagh and Nugent. ✓ These areas remain open at depth and along strike. ✓ There are a further 7 areas which were
Slide 12: Stage 1 Mine Plan
STAGE 1 MINE PLAN For personal use only The mine plan and associated economics is based on the Economic Assessment released to the ASX on 27 February 2023. It does not include an update to the Nugent Resource model reported to the ASX 26 July 2022 which increased the total copper metal from 8.7kt to
Slide 13: Underground Production Ramping Up
UNDERGROUND PRODUCTION RAMPING UP ✓ All people & plant on site. For personal use only ✓ Underground development in line with planned schedule and costs. ✓ Major projects completed on time and budget (ventilation, electricity, dewatering system). ✓ Production profile ramps up as additional work areas
Slide 14: Processing Plant Commissioned
PROCESSING PLANT COMMISSIONED ✓ 3.6Mtpa processing plant commissioned in Q1-24. For personal use only ✓ Large inventory of critical spares on site mitigates risk of extended downtime. ✓ Long term electricity contract locks in low-cost power until 2027. 13
Slide 15: First Copper Production
FIRST COPPER PRODUCTION ✓ Copper sales in Q1-24 return business to cash generation. For personal use only ✓ 16kt hedging facility available. Currently 3kt hedged at average realised price of $12,500/ tonne. ✓ Copper production profile ramps up as the underground develops. 14
Slide 16: Stage 2 - Growing Life & Copper Production
STAGE 2 - GROWING LIFE & COPPER PRODUCTION ✓ Mine life limited by drilling density. For personal use only ✓ Exploration Target 60 - 100 Mt 0.9 - 1.2% Cu 0.1 - 0.2g/t Au Refer ASX Announcement 11 October 2023. The Exploration Target is conceptual in nature as there has been insufficient exploration t
Slide 17: >100% Exploration Strike Rate
>100% EXPLORATION STRIKE RATE ✓ Mineralisation continuity down dip has resulted in high strike For personal use only rate since 2019: 139 holes 163 intersections Cu-Au ✓ Drilling has resulted in >600% increase in Mineral Resource Estimate (MRE) ✓ >25,000 assays from drilling not yet in the MRE (incr
Slide 18: Mineral Resource Estimate Being Updated
MINERAL RESOURCE ESTIMATE BEING UPDATED Current Mine Plan ✓ Update to include maiden MRE for Emily Star & North Kavanagh, and For personal use only update existing Kavanagh MRE. ✓ Total MRE expected to increase. ✓ Drilling identified a fault that truncates Kavanagh mineralisation to the north and is
Slide 19: Mine Extension - Kavanagh
MINE EXTENSION - KAVANAGH ✓ Mine plan limited by drilling. For personal use only ✓ Deepest holes more than 200m below the extent of the current mine plan highlight that mineralisation is continuing at depth (800m below surface and open). ✓ Recent Kavanagh holes include: 36.6m @ 3.35% Cu . from 43m d
Slide 20: Mine Extension - Spitfire
MINE EXTENSION - SPITFIRE ✓ 45.4m @ 1.19% Cu, 0.12 g/t Au from 428.5m downhole (KTDD243_W1). For personal use only ✓ Nearest hole > 100m. ✓ Follow up drilling confirms Spitfire zone extending down dip and along strike. ✓ Spitfire being modelled in MRE update, however drill results to date have alrea
Slide 21: Mine Extension - Emily Star
MINE EXTENSION - EMILY STAR ✓ Mineralisation continues through base off the open pit. For personal use only ✓ 71.7m @ 0.89% Cu from 132.7m downhole (KTDD239) ✓ 68.7m @ 0.9% Cu from 158.6m downhole (KTDD240), including; ✓ 35m @ 1.29% Cu from 192.2m downhole ✓ Emily Star sits within 300m of the portal
Slide 22: Mine Extension - Paringa
MINE EXTENSION - PARINGA ✓ 17m @ 3.6% Cu, 0.6g/t Au from 144m downhole (KTRC954) For personal use only ✓ 14m @ 2.8% Cu, 0.3g/t Au from 123m downhole (KTRC866); ✓ Mineralisation occurring over 100m down dip and still open. ✓ Immediately adjacent to Emily Star with potential to share underground devel
Slide 23: Game Changer - Kanmantoo Deeps
GAME CHANGER - KANMANTOO DEEPS ✓ Large low resistivity (high conductivity) anomaly coincident For personal use only with magnetic and gravity highs. ✓ Very similar geophysical signature to the main Kanmantoo zone. ✓ Potential extension of the Kanmantoo mineral system that has been offset down fault.
Slide 24: Spare Capacity to Ramp Up Copper Production…
SPARE CAPACITY TO RAMP UP COPPER PRODUCTION… ✓ 3.6Mtpa processing plant only ~40% utilised. For personal use only ✓ Mineralised zones generally characterised by high grade core with lower grade halo. ✓ As price moves up, Hillgrove can quickly respond by widening stopes to present more ore to the pro
Slide 25: …And Convert Exploration Success
…AND CONVERT EXPLORATION SUCCESS ✓ Latent capacity enables Hillgrove to convert exploration success to For personal use only copper with no processing capex. ✓ Increase in annual copper production reduces AISC. ✓ Majority of operational costs are fixed in nature so any additional copper is high marg
Slide 26: First Copper Production Is Just the Beginning
FIRST COPPER PRODUCTION IS JUST THE BEGINNING ✓ Transitioning from Explorer to Producer on schedule and in line For personal use only with costs demonstrates Hillgrove’s capability to deliver. ✓ Kanmantoo is limited by the extent of drilling with all on-lease mineral zones remaining open down dip an
Slide 27: Appendix
For personal use only Appendix 26
Slide 28: References
REFERENCES All exploration drill results, exploration information and Mineral Resource Estimates have previously been reported to the ASX by Competent Person at the time. The results reported herein are reported in the form and context of the original ASX releases. Refer http://www.hillgroveresource
Hillgrove Resources — Investor Presentation (February 2024) on 6ix