Adelaide Hills miner Hillgrove ‘in harvest mode’ after profit turnaround
ADELAIDE Hills miner Hillgrove Resources says it’s now in “harvest mode” and on track for dividends from next year after posting a significant turnaround in its interim financial performance.
ADELAIDE Hills miner Hillgrove Resources says it’s now in “harvest mode” and on track for dividends from next year after posting a significant turnaround in its interim financial performance.
The Kanmantoo copper-gold miner’s first half profit was up 275 per cent to $13.9 million, compared to a loss of $8 million in the previous corresponding period.
The strong result was attributed to the completion of its Giant Pit cutback, boost in production and better commodity prices, managing director Steve McClare told The Advertiser.
“We always had a solid business model but faced cashflow challenges predominantly due to getting the cutback completed.
“Now that’s done, we are now in harvest mode.”
He said the company had strong ambitions with the next few months being about three key factors — returning creditors to normal terms which will help clear debts and build cashflow, looking at realising the value of its pumped hydro storage proposition and significant investment on regional exploration.
“We are serious and on the right track to pay dividends next year as we build on cashflow.”
The highlights of the first half included a 51 per cent increase in copper production to 10,764 tonnes and a 76 per cent jump in gold output to 3,812 ounces.
Underlying earnings before interest, taxes, deduction and amortisation was up 184 per cent to nearly $23 million.
Revenues rose 57 per cent to $86.9 million.
“The evaluation of several growth opportunities and value generation projects will continue,” he said.
Hillgrove will undertake diamond drilling at its Kanappa prospect for copper/gold, lead/zinc at Mt Torrens, the former Bremer high-grade underground copper mine.
Work on a potential underground expansion at Kanmantoo also continues.
The company is expected to select a shortlist of bidders to progress to the binding bid stage for its pumped hydro storage proposal in the September quarter.
“Our growth trajectory continues to build and is strongly supported by these results; driving our momentum in to the second half of 2018,” he said.