en.Wedoany.com Reported - Hillgrove Resources achieved a new copper production record at its Kanmantoo underground copper mine in South Australia during the first quarter of CY26, producing 3,120 tonnes of copper, marking the fourth consecutive quarter of sequential growth. Quarterly revenue reached USD 53.8 million, a 5% increase from the previous quarter, primarily driven by higher copper and by-product prices, with the average copper price at USD 16,629 per tonne, up from USD 14,754 three months prior. Despite a decrease in copper sales volume due to the timing of shipments, mine operating cash flow reached USD 14.6 million, a 16% increase quarter-on-quarter, driving the group's net cash flow to USD 4.8 million. The company's cash position increased to USD 25.2 million at the end of March, up by USD 4.6 million from the end of December.
Hillgrove Resources CEO Bob Fulker stated, "Kanmantoo has started 2026 strongly, with record copper production and USD 14.6 million in mine operating cash flow, reflecting continued improvements in operational performance." Management confirmed that the mine is on track to meet its 2026 production and cost targets, with plans to increase the mining run rate to 1.7-1.8 million tonnes per annum by mid-year.
Regarding cost management, Hillgrove effectively controlled expenses through multiple reduction initiatives, offsetting the impact of rising fuel costs. The all-in sustaining cost per payable pound of copper was USD 6.20, lower than the previous quarter's USD 6.30 and within management's guidance range. The mine has not faced diesel supply constraints, and its proximity to Adelaide and ports via short-haul transport reduces supply chain risks. Renewable energy sources supply over 70% of the processing plant's power.
To support Kanmantoo's growth, Hillgrove invested USD 2.3 million in capital works, focusing on the first stage of the Emily Star lode development and exploration drilling. The company completed the first stage of the Emily Star exploration drive to optimize drill targets and received assay results from the 2025 drilling program, showing copper grades between 1.28% and 1.6%. Additionally, a new diamond drilling program has commenced at Emily Star, while drilling at the Nugent area has also returned high-grade copper mineralization results. Fulker noted, "Drilling results at Nugent and Emily Star support near-mine growth opportunities that underpin the potential for future production exceeding 2 million tonnes per annum." Stable operational performance and a robust balance sheet position Hillgrove for its next phase of growth.
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