Hillgrove Resources Ltd.

Hillgrove Resources Ltd. is a junior copper producer headquartered in Unley, Australia, operating primarily in Australia. The company's portfolio consists of 1 operating mine, in addition to several early-stage exploration prospects. Key assets include Kanmantoo. The entity's business model is centered on transitioning from surface to underground extraction methods, supported by a substantial processing plant with a capacity of 3.6 million tonnes per annum. A key competitive advantage stems from its strategic asset positioning, which yields significant operating and capital cost benefits and facilitates the attraction and retention of a skilled, predominantly local workforce. The operational approach focuses on leveraging existing infrastructure to restart and ramp up production efficiently. The ultimate vision is to evolve into a mid-tier, multi-asset producer, unlocking value through a sustainable operational framework. The organization operated as a series of open pits from 2010 to 2020 before recommencing operations with underground mining. This transition marks a significant evolution for the company, leveraging a fully permitted site with significant established infrastructure to support its production goals.

The organization's strategy is to become a mid-tier, multi-asset producer through a combination of organic and inorganic growth. A key element of organic growth is a significant 19,000-metre underground drilling program planned for 2025, designed to test new exploration opportunities and down-dip extensions to known mineralization. The enterprise aims to improve asset quality with each transaction while maintaining financial strength, a goal supported by measures such as securing a standby debt facility to ensure stability and flexibility. The approach emphasizes achieving operational predictability and consistent cash flow generation to fund future growth initiatives. Management is positioning the company to capitalize on a robust market for its product, driven by its role as a critical material in the global energy transition, by focusing on a disciplined approach to operational excellence.

Executive leadership is headed by a CEO and Managing Director appointed in July 2024, a mining engineer with 39 years of industry experience, including senior executive positions at Evolution Mining and OZ Minerals. The Board of Directors consists of 4 members, with 3 being independent non-executive directors. Board oversight is structured through an Audit and Risk Committee, a Nomination Committee, and a Remuneration Committee. The governance framework aligns with the ASX Corporate Governance Council’s Fourth Edition recommendations, with the Audit and Risk Committee responsible for overseeing internal financial and business controls and reviewing the risk management register semi-annually. The company maintains a Whistleblower Policy and a Fraud and Corruption Policy, with the Audit and Risk Committee overseeing their implementation and reporting findings directly to the Board.

Environmental initiatives include the complete elimination of onsite diesel generation and the accelerated reduction of Scope 2 emissions through connection to the power grid. The organization is advancing a significant grassy woodland revegetation program, a community collaboration aimed at creating a multi-kilometer greenbelt to restore ecological diversity. A formal Climate Change Position Statement has been published, and a comprehensive climate change risk assessment of operations has been completed. Social commitments are demonstrated by a 14% decrease in the Total Recordable Injury Frequency rate and maintaining a workforce that is 95% local. The company actively participates in an award-winning community consultative committee, a model for stakeholder engagement. Governance practices were enhanced through the completion of a formal materiality assessment to identify and prioritize key sustainability topics relevant to the business and its stakeholders.

The corporate structure includes several wholly-owned operational subsidiaries, including Hillgrove Copper Pty Ltd, Hillgrove Exploration Pty Ltd, and Hillgrove Mining Pty Ltd, which form the consolidated group. Key structural relationships are maintained with substantial shareholders, including a royalty funding agreement established in August 2022 with Freepoint Metals and Concentrates LLC. This was supplemented in October 2024 by a standby debt facility agreement, also with Freepoint, which holds a 19.98% stake in the company. Another substantial shareholder is Ariadne Australia Limited, holding a 10.3% interest. The source material does not indicate any recent mergers, acquisitions, or joint venture partnerships.