Hillgrove Resources’ Kanmantoo underground copper mine in South Australia has driven its profit gains in 2025, with higher production rates, improved operational flexibility, and the completion of a key growth project for further expansion in 2026.
In the year ending December 31, 2025, Hillgrove reported revenue of $167.6 million, up from $112.2 million in 2024, supported by increased copper and gold production, as well as favourable pricing.
The company delivered earnings before interest, taxes, depreciation and amortisation (EBITDA) of $26 million and a net profit after tax of $0.1 million, a turnaround from the $14.8 million loss recorded the previous year.
At the centre of this uptick was Kanmantoo, which produced 11,315 tonnes of copper during the year, at an all-in sustaining cost (AISC) of $US4.29 per pound, which is within guidance.
Likewise, mining rates ramped up to over 1.5 million tonnes per annum (Mtpa), exceeding Hillgrove’s 1.4 Mtpa target.
Commenting on the results, Hillgrove chief executive officer (CEO) and managing director Bob Fulker said it was a defining year for the company.
“It was marked by disciplined investment to position the business for the next phase of delivery and growth,” he said.
“While the benefits of these investments were not fully reflected in the 2025 production or financial outcomes, the work completed has created the platform for stronger performance in the years to come.”
Alongside Kanmantoo, a major milestone for the overall operation was the completion of development at Nugent, delivered on schedule and within its $21 million budget.
The Nugent mining area provides a “second mining front” to support the planned Kanmantoo ramp-up to 1.7 to 1.8 Mtpa run-rate, within the first half of 2026.
“Completing Nugent on schedule and within budget was a major achievement and has already delivered significant operational benefits, including increased flexibility and throughput above our initial targets,” Fulker said.
“Importantly, the Kanmantoo operation remained cash-positive throughout the year, generating $35.8 million of operating mine cash flow, demonstrating the strength of the Kanmantoo asset and the capability of our team.”
With Nugent now online, Fulker said that Hillgrove’s attention has turned to Emily Star, which has the potential to become its third ore source, and with updated drill results expected in the first half of this year.
“We are entering 2026 with strong momentum, a clear growth pathway, and a commitment to delivering long-term value for our shareholders,” Fulker said.
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