Copper output fell 12% at Hillgrove's Kanmantoo mine after a ventilation bottleneck slowed stoping. Cash costs rose to A$3.96/lb. Management says the fix is in and FY guidance of 11,000-12,000 tonnes remains achievable.
Alpha Score of 40 reflects weak overall profile with moderate momentum, poor value, moderate quality, moderate sentiment.
Hillgrove Resources posted a 12% drop in Q2 copper production after the Kanmantoo underground mine in South Australia ran into a ventilation bottleneck that slowed stoping rates, the company said Tuesday.
Output came in at 2,438 tonnes of copper in concentrate, down from 2,776 tonnes in Q1. The ventilation constraint at Kanmantoo's 15 Level restricted access to higher-grade zones, forcing the operation to draw from lower-grade development material for part of the quarter. Management said the issue is fixed and stoping has resumed on plan.
Cash costs rose to A$3.96 per pound, up from A$3.50 in Q1, reflecting the grade dilution and lower throughput. Hillgrove sold 2,352 tonnes of copper at an average realised price of A$6.77 per pound, down from A$7.01 in the prior quarter as LME copper pulled back from March highs.
Robert Fulker, managing director, told the call that the company is tracking toward the upper end of its 11,000-12,000 tonne full-year guidance. Achieving that range requires a material step-up in H2 output, with the ventilation fix now in place.
Hillgrove ended the quarter with A$11 million in cash and no debt. The company's next quarterly report is due in October.
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