Annual &
Sustainability
Report
for the year ended 31 December
2024
www.hillgroveresources.com.au
About this report
Acknowledgement of Country
Non-IFRS financial information
Investors should be aware that financial data in this report includes ‘non-IFRS financial
information’ under ASIC Regulatory Guide 230 Disclosing non-IFRS financial information
published by ASIC and also ‘non-GAAP financial measures’ within the meaning of
Regulation G under the U.S. Securities Exchange Act of 1934. Non-IFRS/non-GAAP
measures in this presentation include gearing, sustaining capital, major project capital, major
mine development, production cost information such as All-in Sustaining Cost and All-in
Cost. Hillgrove Resources Limited (Hillgrove) believes this non-IFRS/ non-GAAP financial
information provides useful information to users in measuring the financial performance and
conditions of Hillgrove. The non-IFRS financial information does not have a standardised
meaning prescribed by the Australian Accounting Standards (‘AAS’) and, therefore, may
not be comparable to similarly titled measures presented by other entities, nor should it be
construed as an alternative to other financial measures determined in accordance with AAS.
Investors are cautioned, therefore, not to place undue reliance on any non-IFRS/non-GAAP
financial information and ratios included in this Report. Non-IFRS financial information in this
presentation has not been subject to audit or review by the Company’s external auditor.
Forward looking statement
This Report contains or may contain certain forward-looking statements and comments
about future events, that are based on Hillgrove’s beliefs, assumptions and expectations
and on information currently available to management as at the date of this presentation.
Often, but not always, forward-looking statements can generally be identified by the use
of forward-looking words such as “may”, “will”, “expect”, “plan”, “believes”, “estimate”,
“anticipate”, “outlook”, and “guidance”, or similar expressions, and may include, without
limitation, statements regarding plans, strategies and objectives of management, anticipated
production and production potential, financial forecasts, product quality estimates of
future Mineral Resources and Ore Reserves. Such statements are only expectations or
beliefs and are subject to inherent risks and uncertainties which could cause actual values,
results or performance achievements to differ materially from those expressed or implied
in this announcement. Where Hillgrove expresses or implies an expectation or belief as
to future events or results, such expectation or belief is expressed in good faith and on a
reasonable basis. No representation or warranty, express or implied, is made by Hillgrove
that the matters stated in this presentation will in fact be achieved or prove to be correct.
Except as required by law, Hillgrove undertakes no obligation to provide any additional or
updated information or update any forward-looking statements whether on a result of new
information, future events, results or otherwise. Readers are cautioned against placing
undue reliance on forward-looking statements. These forward-looking statements are not
guarantees of future performance and involve known and unknown risks, uncertainties,
assumptions and other important factors, many of which are beyond the control of Hillgrove,
the directors, and management of Hillgrove. These factors include, but are not limited to
difficulties in forecasting expected production quantities, the potential that any of Hillgrove’s
projects may experience technical, geological, metallurgical and mechanical problems,
changes in market prices and other risks not anticipated by Hillgrove, changes in exchange
rate assumptions, changes in product pricing assumptions, major changes in mine
plans and/or resources, changes in equipment life or capability, emergence of previously
underestimated technical challenges, increased costs, and demand for production inputs.
Hillgrove acknowledges the Peramangk and Kaurna people, the Traditional
Owners and Custodians of the lands on which we live and operate.
We pay our respects to Elders past and present and acknowledge their
continuing connection to waters, skies, seas and country.
This Annual Report is a summary of Hillgrove and its subsidiaries
operations, activities and financial position as at 31 December 2024.
Currency is expressed in Australian dollars unless otherwise stated.
We have combined our disclosures into a single Annual and
Sustainability Report to demonstrate the interconnectivity of
Sustainability with Company performance. See the Sustainability
Report within this document for information on our Sustainability
performance, boundary and scope. Current and previous reports are
available on the Company’s website at
www.hillgroveresources.com.au
Our 2024 Corporate Governance Statement is available to view at
www.hillgroveresources.com.au/corporate-governance
This Report has been approved for release by the Board
of Hillgrove Resources Limited (ASX: HGO) (‘Hillgrove’, ‘we’
or ‘the Company’).
Contents
ANNUAL REPORT
2024 in Review
2
About Hillgrove Resources
3
Chair and CEO and Managing Director’s Statement
4
Board of Directors and Officers
6
Operational Performance
7
Exploration Highlights
8
Mineral Resources and Ore Reserves
11
SUSTAINABILITY REPORT
About this Report
16
Sustainability Overview 2024
17
A Foreword from our Chair
18
Our Approach to Sustainability
19
Materiality Assessment
20
Proposed Material Sustainability Topics
21
Mapping of Material Sustainability Topics
23
Our Performance, Commitments and Long-term Goals
24
Governance
25
Environment
28
Social
34
FINANCIAL REPORT
Directors’ Report
43
Auditor’s Independence Declaration
58
Financial Statements
59
Consolidated Entity Disclosure Statement
85
Directors’ Declaration
86
Independent Auditor’s Report to the Members
87
Shareholder Information
92
Corporate Information
94
1
HILLGROVE RESOURCES LIMITED
2024 ANNUAL REPORT
In 2024 we successfully transitioned into a copper producer,
with our first underground copper production at Kanmantoo
achieved in February. This milestone marks a significant
step forward in Hillgrove’s evolution.
We also achieved strong organic growth through
substantial resource expansion and
prepared to test the next suite
of high potential targets.
We are on track to achieving our
ultimate vision: becoming a mid-tier,
multi-asset Australian copper
producer, unlocking value for
a sustainable future.
FINANCIAL
REPORT
SUSTAINABILITY
REPORT
ANNUAL
REPORT
2
HILLGROVE RESOURCES LIMITED
2024 ANNUAL REPORT
Operational and Financial
COPPER PRODUCTION
8,971
TONNES
1. Local is defined as within a 125km radius from Kanmantoo
2. Compared to 2022 Mineral Resources Estimate 7.0Mt at 1.08% containing 75,900t Cu, see ASX
announcement ‘Updated Nugent underground Mineral Resource Estimate released on 26 July 2022
3. See the Mineral Resources and Ore Reserves section in this Report for further information
2024 in Review
GOLD PRODUCTION
1,813
OUNCES
COMMERCIAL
COPPER PRODUCTION
Commenced
EBITDA
$22.5
MILLION
FINANCIAL FLEXIBILITY
(STANDBY DEBT FACILITY)
$10 MILLION
OPERATING CASH FLOW
$21.0
MILLION
Sustainability
CLIMATE CHANGE
POSITION
STATEMENT
RELEASED
FEMALE
PARTICIPATION
18.3%
TRIF
REHABILITATION
Progressed the Kanmantoo Grassy
Woodland Revegetation – an award
winning community collaboration
MATERIALITY
ASSESSMENT
COMPLETED
LOCAL
WORKFORCE 1
95%
14% DECREASE
(Dec. 24:13.1 | Dec 23: 15.3)
Organic Growth – Mineral Resources and Ore Reserve
MINERAL RESOURCE 2,3
Contained Gold
MAIDEN ORE RESERVE 3
2.8Mt
138% INCREASE
MINERAL RESOURCE 2,3
96% INCREASE
Contained Copper
26kt Contained Copper
14koz Contained Gold
A U S T R A L I A
SOUTH
AUSTRALIA
Kanmantoo Mine
ADELAIDE
EL 6294
Wynarka
EL 6174
Coomandook
EL 6175
Coonalpyn
EL 6207
Tintinara
EL 6397
Laffer
EL 6526
Kanmantoo
Regional
EL 6526
FINANCIAL
REPORT
SUSTAINABILITY
REPORT
ANNUAL
REPORT
3
HILLGROVE RESOURCES LIMITED
2024 ANNUAL REPORT
Hillgrove Resources Limited (‘Hillgrove’, ‘we’ or ‘the Company’) is a growing, Australian copper
producer listed on the Australian Stock Exchange (ASX: HGO).
Our vision
To be a mid-tier, multi-asset Australian copper producer unlocking value for a sustainable future.
Our culture and values
Are pivotal to who we are and how we do business.
About Hillgrove Resources
Our strategy
To create long-term shareholder value through:
BALANCED PROFILE
Multi-asset, Australian
copper producer
REPUTATION
Deliver on promises;
operating capability;
stakeholder, investor and
ESG responsibilities
GROWTH
Demonstrate growth
– organic and inorganic
ASSET QUALITY
Improving asset quality
through each transaction
FINANCIAL STRENGTH
Achieve portfolio and
growth objectives while
retaining financial strength
SAFETY
We operate safely, protect each
other and the environment
and leave a positive legacy for
future generations
INTEGRITY
We are respectful, ethical
and trustworthy, we do
what is ‘right’ not just
what we have to do
DELIVERY
We hold ourselves
accountable for the delivery
of sector leading results,
what we are known for
Tier 1 asset location
The Kanmantoo Copper Mine is situated in the Adelaide Hills region
of South Australia, just 55 kilometres from Adelaide and only three
kilometres from the main dual carriageway to Port Adelaide. This
strategic location offers significant advantages in both operating and
capital costs, making it easier to attract and retain a skilled workforce
that primarily resides in the area. The mine operated as a series of
open pits from 2010 to 2020, producing around 137,000 tonnes
of copper and over 55,000 ounces of gold. Operations
restarted in May 2023 with underground mining commencing
and first copper production achieved in February 2024.
The operation is fully permitted and has significant
infrastructure including a 3.6 million tonne
per annum processing plant.
Figure 1: HGO Tenements as at 31 December 2024.
FINANCIAL
REPORT
SUSTAINABILITY
REPORT
ANNUAL
REPORT
4
HILLGROVE RESOURCES LIMITED
2024 ANNUAL REPORT
Dear Shareholders,
We are pleased to present the Annual and Sustainability Report
for the year ended 31 December 2024. This year has been a
pivotal one for Hillgrove, marked by significant milestones and
achievements that position us for continued growth and success.
We successfully transitioned to a copper producer, with our first
copper production achieved in February 2024 and commercial
copper production reached in July 2024. This marks a major step
forward in Hillgrove’s evolution, supported by our strategic focus
on organic growth and resource expansion.
In addition, we were excited to announce the appointment of
Bob Fulker as CEO and Managing Director who commenced on
1 July 2024. Bob brings extensive experience in operational
excellence and growth, and we are confident that his leadership
will be instrumental in driving Hillgrove’s future success.
As we continue to create long-term value for our shareholders,
we are proud to highlight our key achievements in 2024:
Operational and organic growth
X
X Robust Operational Performance: Successfully
produced 8,971 tonnes of copper and 1,813 ounces
of gold in 11 months of operation
X
X Significant Resource Growth: A 96% increase in contained
copper and a 138% increase in contained gold within the
2024 Mineral Resource estimate at Kanmantoo, alongside the
release of a maiden Ore Reserve estimate
X
X Exploration Advancement: Our exploration programs in
2024 resulted in significant resource expansion. Our next
suite of exploration targets will be drill tested in 2025 by a
19,000-metre underground drilling program, targeting new
exploration opportunities, including down-dip extensions to
known mineralisation
X
X Operational Excellence: Continued focus on operational
predictability and cash flow generation, ensuring we are in a
strong position to support future growth
Financial performance
X
X Cash Flow: Achieved $21.0 million in net cash flow from
operating activities
X
X EBITDA: Reported EBITDA of $22.5 million following the
recommissioning of the Kanmantoo plant
X
X Financial Flexibility: Secured a $10 million Standby Debt
Facility to provide financial stability and flexibility
Sustainability
X
X Safety Improvements: Achieved a 14% reduction in Total
Recordable Injury Frequency (TRIF), though we acknowledge
the continued need to prioritise workforce safety.
Chair and Chief Executive Officer & Managing Director’s Statement
Derek Carter
Chair
Bob Fulker
CEO and Managing Director
We successfully transitioned
to a copper producer, with
our first copper production
achieved in February 2024 ...
Derek Carter Chair
X
X Sustainability Initiatives:
Z
Z Ended all onsite diesel generation and accelerated the
reduction of Scope 2 emissions through the connection
to the South Australian grid
Z
Z Made significant progress on the Kanmantoo Grassy
Woodland Revegetation Program, creating a multi-
kilometre greenbelt that links our mining rehabilitation
efforts with broader regional vegetation initiatives
Z
Z Actively contributed to the Kanmantoo Callington
Community Consultative Committee (K4C), which
continues to be an award-winning model of stakeholder
engagement
Z
Z Maintained a predominantly residential workforce and
welcomed 98 new employees, reinforcing our
commitment to local hiring
Z
Z Maintained female employee representation of 18.3%
– we are committed to improving gender diversity and
have outlined specific actions to support this goal
Z
Z Published our Climate Change Position Statement,
reaffirming our commitment to sustainability and
climate action
Z
Z Completed a materiality assessment, identifying
key sustainability topics relevant to our business and
stakeholders
FINANCIAL
REPORT
SUSTAINABILITY
REPORT
ANNUAL
REPORT
5
HILLGROVE RESOURCES LIMITED
2024 ANNUAL REPORT
Chair and Chief Executive Officer & Managing Director’s Statement cont.
Looking Forward
The successful mining ramp up and plant commissioning
at the Kanmantoo Copper Mine established a solid platform for
delivery in the calendar 2025 year. Group copper production is
expected to increase significantly in 2025 to 12,000 to 14,000
tonnes of copper due to a combination of increased quarterly
production rates and a full 12 months of production and All-in
Costs are planned to improve to 3.40 - 3.90 (US$/lb) as the
year progresses as further efficiencies are realised and mining
rates continue to ramp up. 1
Looking ahead, we are well positioned to capitalise on a
robust copper market, driven by increasing demand as a
critical mineral in the global energy transition. Our focus on a
disciplined approach to operational excellence and growth will
ensure we achieve our vision of becoming a mid-tier, multi-
asset Australian copper producer, unlocking value for
a sustainable future.
1. CY2025 production and All-in Cost guidance is extracted from ASX release
titled “Hillgrove Resources Limited (ASX: HGO) report for the quarter ended
31 December 2024“ dated 21 January 2024 and available to view at
www.hillgroveresources.com.au
On behalf of the Board, we would like to express our sincere
gratitude for your continued support and confidence. We also
extend our thanks to our employees, contractors, local and state
governments, and the communities that support us. Their dedication
and collaboration are vital to our ongoing success.
Sincerely,
Derek Carter
Chair
Bob Fulker
Chief Executive Officer & Managing Director
FINANCIAL
REPORT
SUSTAINABILITY
REPORT
ANNUAL
REPORT
6
HILLGROVE RESOURCES LIMITED
2024 ANNUAL REPORT
The Directors and Officers of the Company during the whole of the financial year and up to the date of this report are:
Mr Derek Carter
Independent Non-
Executive Chair /
Chair Nomination
Committee
BSc, MSc, FAusIMM
Derek has over 50 years’
experience in exploration
and mining geology
and management. He
held senior positions in
Burmine Ltd and the Shell
Group of Companies
where he was responsible
for discovering the Los
Santos tungsten deposit
in Spain, before founding
Minotaur Gold NL in 1993.
He resigned as Chair of
Minotaur Exploration Ltd
in November 2016. Derek
was awarded AMEC’s
Prospector of the Year
Award (jointly) in 2003
for the discovery of the
Prominent Hill copper-
gold deposit, the AusIMM
President’s Award and is a
Centenary Medallist. Derek
is currently the Chair of
Petratherm Limited (ASX:
PTR).
Derek is a member of the
Audit and Risk and the
Remuneration Committee.
Appointed 24 April 2020.
Mr Murray Boyte
Independent Non-
Executive Director /
Chair Audit and Risk and
Treasury Committees
BCA, CA, MAICD
Murray has over 40 years’
experience in merchant
banking and finance,
undertaking company
reconstructions, mergers
and acquisitions in
Australia, New Zealand,
North America and Hong
Kong. Murray holds a
Bachelor of Commerce
and Administration from
the Victoria University
in Wellington and is a
member of the Australian
Institute of Company
Directors, and Chartered
Accountants Australia
& New Zealand. In
addition, Murray has
held executive positions
and directorships in the
transport, horticulture,
financial services,
investment, health services
and property industries.
Murray is currently Chair
of National Tyre & Wheel
Limited (ASX: NTD). He
retired as the Chair of
Eureka Group Holdings
Limited (ASX: EGH) on
25 February 2025, and as
a Non Executive Director
of Eumundi Group (ASX:
EBG) on 14 February 2025.
Murray is a member
of the Nomination and
Remuneration Committees.
Appointed 10 May 2019.
Mr Roger Higgins
Independent Non-
Executive Director /
Chair Remuneration
Committee
BE (Hons), MSc, PhD,
FAusIMM, FIEAust
Roger has over 50 years
of experience in the
resources industries,
including being a former
Managing Director of Ok
Tedi Mining Limited in
Papua New Guinea and
Senior Vice President
Copper at Canadian
metals and mining
company Teck Resources
Limited. He was also
Vice President and Chief
Operating Officer with BHP
Base Metals (Australia)
and held senior operations
and project positions with
BHP in Chile. He is an
Adjunct Professor with
the Sustainable Minerals
Institute, University of
Queensland. Roger is
currently a Non Executive
Director of Worley Limited
and Arafura Rare Earths.
He was also recently the
Chair of both Minotaur and
Demetallica Limited and a
Non Executive Director of
Newcrest Mining Limited.
Roger is a member of
the Nomination, Audit
and Risk, and Treasury
Committees.
Appointed 6 June 2023.
Mr Robert Fulker
Chief Executive Officer
and Managing Director
BEng (Mining), MSc
(Mineral & Energy
Economics), FAusIMM,
Bob is a highly
experienced Mining
Engineer with 39 years of
experience in the minerals
industry. He has held
Senior Executive positions
at Evolution Mining and OZ
Minerals, where he was
responsible for leading the
safe and efficient delivery
of significant operations.
Bob’s extensive experience
spans Australia, Africa,
and Canada, where he
has consistently achieved
outstanding results in
various mineral sectors.
His strategic leadership
in corporate roles and
operational excellence
through innovative
solutions have significantly
enhanced safety,
operations, and profitability.
Throughout his career, Bob
has worked with industry
leaders such as Rio Tinto,
Normandy Mining, BHP,
OZ Minerals, and Evolution
Mining.
Appointed 1 July 2024.
Mr Joe Sutanto
Chief Financial Officer
and Company Secretary
BCom, MBA, CPA
Joe joined Hillgrove in
2011 and has held a
number of roles within
the finance team, which
spanned commercial
and planning to financial
control before becoming
the Company Secretary
and Chief Financial
Officer in 2023. Prior
to Hillgrove, Joe held a
number of roles which
included as a corporate
finance executive at
PwC Corporate Finance,
commodities trader at
Glencore, and as an
auditor at KPMG. A CPA
qualified accountant,
Joe completed his MBA
at HKUST and London
Business School.
Appointed 16 June 2023.
Board of Directors and Officers
FINANCIAL
REPORT
SUSTAINABILITY
REPORT
ANNUAL
REPORT
7
HILLGROVE RESOURCES LIMITED
2024 ANNUAL REPORT
X
X 8,971 tonnes of copper and 1,813 ounces of gold produced in 2024
X
X The underground mine reached commercial production in July 2024
Table 1: Kanmantoo production for 2024
Kanmantoo Production
Units
Dec 2024
Quarter
Sep 2024
Quarter
Jun 2024
Quarter
Mar 2024
Quarter
CY2024
Total
Mining Physicals
Total Development
m
1,621
1,401
1,238
1,405
5,665
Inventory Mined
kt
311
280
211
122
924
Grade Mined
%
0.85
1.20
1.24
0.82
1.03
Processing Physicals
Tonnes Processed
kt
329
266
256
104
955
Grade Processed
%
0.86
1.18
1.10
0.93
1.02
Recoveries
%
93.5
93.3
91.4
82.7
90.2
Production
Copper Produced
t
2,637
2,923
2,584
827
8,971
Gold Produced
oz
490
626
535
162
1,813
Silver Produced
oz
21,854
26,372
23,377
5,810
77,413
2024 Operational Performance
CY2025 Guidance
CY2025 production and All-in Cost guidance presented below is extracted from ASX release
titled “Hillgrove Resources Limited (ASX: HGO) report for the quarter ended 31 December
2024“ dated 21 January 2024 and available to view at www.hillgroveresources.com.au
The successful mining ramp up and plant commissioning at the Kanmantoo Copper Mine has
established a solid platform for delivery in the calendar 2025 year. Group copper production
is expected to increase significantly from 2024 due to a combination of increased quarterly
production rates and a full 12 months of production.
Costs are expected to stabilise during the first quarter of 2025. All-in Costs per pound are
planned to improve as the year progresses as further efficiencies are realised and mining
rates continue to ramp up with the guidance calculated using an AUD:USD exchange rate
assumption of 0.64. All-in Costs include C1 costs plus all site sustaining and major capital
plus an allocation of Group Office costs.
Table 2: CY2025 Guidance production and costs
Metric
2025 Guidance Range
Copper Production (tonnes)
12,000 – 14,000
All-in Cost (US$/lb)
3.40 – 3.90
FINANCIAL
REPORT
SUSTAINABILITY
REPORT
ANNUAL
REPORT
8
HILLGROVE RESOURCES LIMITED
2024 ANNUAL REPORT
We explore for copper-gold deposits and currently hold 100% of a series of
Exploration Licenses covering 4,187 square kilometres in south-east South Australia
in the Cambrian-Ordovician Kanmantoo Province. Over 95% Of the Kanmantoo
Province is covered by the Tertiary Murray Basin which has limited past exploration.
Our total expenditure in 2024 was A$7.0M with 40 kilometres of drilling completed
across the Kanmantoo Operation and Near Mine targets achieving resource
expansion. In 2025 our exploration focus will continue on resource growth and
identifying new discovery targets.
Kanmantoo Mine Lease Exploration
We have continued to explore within the Kanmantoo Mine Lease for copper-gold
endowment. In 2024, in addition to grade control drilling on the Main Kavanagh
mineralised zone, three zones of special interest have been drilled (Spitfire, South
West Kavanagh and Nugent).
Spitfire
Exploration drilling to explore the down dip of the Spitfire Cu-Au zone intersected
by the underground diamond drilling, returned 1:
X
X 40.0m grading 1.38% copper (uncut) from 74m downhole (23KVUG0238)
X
X 36.0m grading 1.78% copper 0.15g/t gold (uncut) from 175m downhole
(23KVUG0101)
The Spitfire drilling continues to demonstrate that there are wide zones of higher-
grade copper-gold breccia. These results have been included in the Mineral
Resource Estimate Update released in October 2024 2.
South-West Kavanagh
Exploration drilling to explore the South West extents
of the Kavanagh copper-gold zone intersected by the
underground diamond drilling returned 3 :
X
X 20.1m grading1.38% copper (uncut) from 87m
downhole (24KVUG0315)
X
X 16.0m grading 1.05% copper (uncut) from 90m
downhole (24KVUG0319)
The South West Kavanagh drilling demonstrated the
predictability of the mineralisation down dip and identified
areas of previously unidentified higher-grade copper
breccias. These results have been included in the Mineral
Resource Estimate Update released in October 2024 4.
Figure 2: Cross section showing all UG drill holes through
SW Kavanagh and Spitfire with all surface DDH
Exploration Highlights
1 23 May 2024 – Underground drilling extends Kanmantoo
mineralisation
2 18 October 2024 – Maiden Kanmantoo underground Ore Reserve
and 96% increase in Copper Mineral Resource endowment
3 23 May 2024 – Underground drilling extends Kanmantoo
mineralisation
4 18 October 2024 – Maiden Kanmantoo underground Ore Reserve
and 96% increase in Copper Mineral Resource endowment
Giant Open Pit completed 2019
SW Kavanagh
Underground
development
900mRL
318,300mE
318,200mE
318,400mE
23KVUG0102
30m @ 0.92% Cu
100 metres
Drillhole Grades
(%Cu)
> .1 0
0 8 1 0
. - .
0. - .
6 0 8
0.4 - 0.6
0.
- 0.
15
4
< 0.15
23KVUG0101
15m @ 0.81% Cu
23KVUG0101
36m @ 1.78% Cu,
0.15g/t Au
23KVUG0238
40m @ 1.38% Cu
24KVUG0315
20.1m @ 1.38% Cu
318,100mE
800mRL
700mRL
FINANCIAL
REPORT
SUSTAINABILITY
REPORT
ANNUAL
REPORT
9
HILLGROVE RESOURCES LIMITED
2024 ANNUAL REPORT
Nugent
Resource confirmation (grade control)
and expansion drilling commenced during
the year to explore the Nugent extents.
Significant Nugent drill intersections include 5 :
X
X 18.55m grading 5.69% copper and
1.02g/t gold (uncut) from 187m downhole
in 24KVUG0476
X
X 16.00m grading 2.96% copper and
0.42g/t gold (uncut) from 197m downhole
in 24KVUG0503
X
X 9.40m grading 1.07% copper and 0.07g/t
gold (uncut) from 204m downhole in
24KVUG0451
X
X 15.00m grading 0.85% copper and
0.36g/t gold (uncut) from 196m downhole
in 24KVUG0449
The Nugent drilling has continued to
provide information on the continuity of the
Nugent mineral system and the geometry
of the mineralised pods. These results
have not been included in the Mineral
Resource Estimate Update released in
October 2024 6 and will be incorporated into
updates following further drilling.
Figure 3: Plan view of Underground Nugent Drilling Completed to the end of Dec 2024.
Regional Exploration
Kanmantoo Geophysical Anomaly
During the year, drilling was completed on the geophysical anomaly approximately 400
metres north and 600 metres beneath the northern extents of the Kanmantoo open pit.
The mineralisation observed within drilling is consistent with the down plunge extents of
North Kavanagh however within the footprint of the interpreted geophysical structure there
is an absence of mineralised veining. The alteration observed was consistent with the
Magnetotelluric (MT) survey response.
Assay results from drilling of the MT Geophysical anomaly include 7:
X
X 2m grading 0.83% copper and 0.06g/t gold downhole from 332m in KTDD246
X
X 1m grading 1.05% copper and 0.21g/t gold downhole from 343.5m in KTDD246
X
X 11.7m grading 0.77% copper and 0.08g/t gold downhole from 250.8m in KTDD247
X
X 2.5m grading 0.84% copper and 0.44g/t gold downhole from 434m in KTDD247
Near Mine Exploration
The Company continues to hold the copper-gold prospects within 10 kilometres of the
Kanmantoo processing plant as high value targets for future drilling and evaluation for
processing options. These include the previously announced 8 South Kanmantoo, Stella,
Mullewa and North West Kanmantoo geochemical and geophysical targets. These prospects
all have similar geochemical and geophysical signatures to the Kanmantoo mineral system.
Exploration Highlights continued
5
21 January 2025 – Hillgrove Resources Limited (ASX: HGO) report for the quarter ended 31 December 2024
6
18 October 2024 – Maiden Kanmantoo underground Ore Reserve and 96% increase in Copper Mineral
Resource endowment
7
23 October 2024 – Hillgrove Resources Limited (ASX:HGO) report for the quarter ended 30 September 2024
8
29 April 2019 – Cu-Au and Cu-Mo zones uncovered by exploration
Nugent Pit
Planned 920 Level
Development
920 NUG inc SP
6,114,500mN
6,114,700mN
318,500mE
318,300mE
318,700mE
October 2024 MRE
Blocks >0.4% Cu
24KVUG0451
9.4m @ 1.07% Cu,
0.07g/t Au & 1.53g/t Ag
@ 940RL
24KVUG0503
16m @ 2.96% Cu,
0.42g/t Au & 6.59g/t Ag
@ 930RL
24KVUG0476
18.55m @ 5.69% Cu,
1.02g/t Au & 10.76g/t Ag
@ 960RL
24KVUG0449
15m @ 0.85% Cu,
0.36g/t Au & 2.61g/t Ag
@ 935RL
100 metres
Sliced at 960+/o 50m
Legend (%Cu)
> .5 0
1 0 5 0
. - .
0. - .
8 1 0
0.6 - 0.8
0. - 0.
4
6
0.2 - 0.4
< 0.2
FINANCIAL
REPORT
SUSTAINABILITY
REPORT
ANNUAL
REPORT
10
HILLGROVE RESOURCES LIMITED
2024 ANNUAL REPORT
Exploration Highlights continued
Regional Exploration continued
Southeast Kanmantoo Province
The regional area comprises 4,187 km2 of
exploration licences within the Kanmantoo Province
in the south-east of South Australia. During the year,
25 percent (1,465km2) of the south-east tenements
were relinquished in areas identified as low value
targets. The work plan for the coming year will focus
on target areas to provide key geological knowledge
to assist in identifying high value potential economic
areas of interest.
Continued interpretation of new mineral system
models operating within the Kanmantoo Province
along with a review of existing data has been a
focus for our regional exploration activities, following
on from work completed by the Geological Survey
of South Australia (GSSA) and MINEX-CRC within
the Kanmantoo Provence on magmatic related
copper-gold endowment.
Figure 4: Longitudinal section viewed to the West of exploration drilling targeting a geophysical anomaly.
Inset: collar locations relative to existing drilling information.
Plan view of drill collars
Nugent
Emily Star
Kavanagh
North Kavanagh
KTDD246 &
KTDD247 Collars
400 metres
Giant Open Pit completed 2019
900mRL
Kanmantoo Long Section
KTDD245 & KTDD247 Looking West
300 metres
Cu %
> .1 0
0 8 1 0
. - .
0. - .
4 0 8
0.2 - 0.4
> 1 0.
0.5 - 1.0
Kavanagh
6,114,000mN
1,000mRL
KTDD246_W2
KTDD246
1.0m @ 1.05% Cu,
0.21g/t Au
KTDD247
11.7m @ 0.77% Cu,
0.08g/t Au
KTDD247
2.5m @ 0.84% Cu,
0.44g/t Au
Nugent
Emily Star
North Kavanagh
Coopers
KTDD246_W3
KTDD246
KTDD246_W1
KTDD247
600mRL
200mRL
6,114,800mN
6,115,600mN
KTDD246
2.0m @ 0.83% Cu,
0.06g/t Au
Au g/t
FINANCIAL
REPORT
SUSTAINABILITY
REPORT
ANNUAL
REPORT
11
HILLGROVE RESOURCES LIMITED
2024 ANNUAL REPORT
The annual Mineral Resource and Ore Reserve estimates are reported for our 100% owned Kanmantoo Copper Mine in South Australia.
Kanmantoo Mineral Resource
Kanmantoo 2024 Mineral Resources as at 30 September 2024 (depleted as at 30 June 2024) is estimated at 19.3 million tonnes grading
0.77% copper and 0.14g/t gold containing 150,000 tonnes of copper and 82,000 ounces of gold 9.
This represents a 96% increase in contained copper and 138% increase in contained gold compared to the prior estimate of 7.0 million tonnes
at 1.08% containing 75,900 tonnes of copper. The 2024 Mineral Resources estimate is provided in Table 3 and is based on a long-term copper
price of US$4.21 per lb and an exchange rate at A$0.65. Mining depletion from 1 July to 30 December 2024 is 6,454 tonnes of copper and
811 ounces of gold. Mineral Resources are reported inclusive of Ore Reserves.
Table 3: Kanmantoo Mineral Resources as at 30 September 2024
Mine Area
JORC
Classification
Tonnage
(kt)
Cu
(%)
Au
(g/t)
Ag
(g/t)
Bi
(ppm)
Cu Metal
(kt)
Au Metal
(koz)
Kavanagh (including Spitfire)
Measured
3,200
0.94
0.04
2.9
190
30
4
Indicated
3,400
0.77
0.10
2.4
97
26
11
Inferred
6,300
0.70
0.11
2.4
110
44
22
Sub-Total
13,000
0.78
0.09
2.5
130
100
37
North Kavanagh
Measured
-
-
-
-
-
-
-
Indicated
230
0.78
0.17
3.0
140
2
1
Inferred
110
0.77
0.21
3.3
130
1
1
Sub-Total
340
0.78
0.18
3.1
140
3
2
Nugent
Measured
-
-
-
-
-
-
-
Indicated
2,300
0.74
0.36
1.7
66
17
26
Inferred
1,100
0.71
0.35
1.6
40
8
13
Sub-Total
3,400
0.73
0.36
1.6
57
25
39
Emily Star
Measured
-
-
-
-
-
-
-
Indicated
-
-
-
-
-
-
-
Inferred
2,600
0.77
0.08
1.6
110
20
7
Sub-Total
2,600
0.77
0.08
1.6
110
20
7
TOTAL
19,300
0.77
0.14
2.2
110
150
82
Notes:
1. Due to effects of rounding, total numbers may not sum.
2. Tonnage and metal are rounded to the nearest 1,000 tonnes, grades are rounded to two significant figures.
3. Mineral Resource is reported at a 0.4% Cu Cut Off Grade for all Mine Areas.
4. Mineral Resource is depleted for mining as at 30 June 2024.
5. Mine depletion refers to current Kavanagh UG operation, and historical Giant Pit, Nugent and Emily Star open pits.
Mineral Resources and Ore Reserves
9
18 October 2024 – Maiden Kanmantoo underground Ore Reserve and 96%
increase in Copper Mineral Resource endowment
FINANCIAL
REPORT
SUSTAINABILITY
REPORT
ANNUAL
REPORT
12
HILLGROVE RESOURCES LIMITED
2024 ANNUAL REPORT
2022 MRE*
Economic
Factors
Drilling /
Methodology
New Mine
Areas
Depletion
Model
2024 MRE
Mineral Resource Tonnage Changes (kt)
6,985
6,825
3,200
2,979
(260)
(439)
19,290
Kanmantoo Mineral Resource continued
Figure 5: Kanmantoo Mineral Resource tonnage
changes (2022 to 2024)
Mineral Resources and Ore Reserves continued
Resource definition and exploration drilling,
in addition to a review of economic factors
and model changes, have contributed to
a substantial increase in the Kanmantoo
Mineral Resource when compared to the
prior 2022 Mineral Resource Estimate.
Mineral Resource changes are
summarised below:
X
X A review of economic factors and
updating copper price assumptions
for current market condition resulted in
the lowering of the cut-off grade for the
Mineral Resource – this led to an addition
of 6,825 thousand tonnes
X
X Grade control / resource definition
drilling and modelling methodology
changes resulted in a 3,200 thousand
tonne increase
X
X Inclusion of Maiden Resources on North
Kavanagh and Emily Star has provided a
2,979 thousand tonne increase
X
X Resource tonnage decreased by
260,000 tonnes due to mining depletion
to 30 June 2024
X
X 439,000 tonnes was removed due to
model changes and reinterpretation at the
Northern end of Kavanagh
*
2022 Kavanagh + Nugent
Mineral Resource Estimate
FINANCIAL
REPORT
SUSTAINABILITY
REPORT
ANNUAL
REPORT
13
HILLGROVE RESOURCES LIMITED
2024 ANNUAL REPORT
Kanmantoo Ore Reserve
Kanmantoo 2024 Maiden Ore Reserve as at 31 August 2024 (depleted as at 30 June 2024) is estimated at 2.8 million tonnes grading 0.91%
copper and 0.15g/t gold containing 26,000 tonnes of copper and 14,000 ounces of gold 10. The 2024 Maiden Ore Reserve estimate is provided
in Table 4 and is based on a long-term copper price of US$3.85 per lb at A$0.66 exchange rate. Mining depletion to 31 December 2024 is
2,810 tonnes of copper and 357 ounces of gold.
Table 4: Kanmantoo Ore Reserves as at 31st August 2024
Mine Area
JORC Classification
Tonnes (kt)
Cu (%)
Au (ppm)
Ag (ppm)
Bi (ppm)
Cu Metal
(kt)
Au Metal
(koz)
Kavanagh
Proved
1,100
1.01
0.04
2.82
220
12
1
Probable
1,000
0.88
0.15
2.7
140
9
5
Proved + Probable
Kavanagh Total
2,100
0.95
0.09
2.76
180
21
6
Nugent
Proved
-
-
-
-
-
-
-
Probable
670
0.76
0.33
1.44
79
5
7
Proved + Probable
Nugent Total
670
0.76
0.33
1.44
79
5
7
Total Ore Reserve
(Kavanagh + Nugent)
Proved
1,200
1.01
0.04
2.82
220
12
1
Probable
1,700
0.83
0.22
2.21
110
14
12
Proved + Probable
2,800
0.91
0.15
2.45
160
26
14
Notes:
1. Dry metric tonnes
2. 0.6% Copper (Cu) design cut-off grade
3. No Probable Ore Reserve was derived from Measured Mineral Resource
4. Minimum stope mining width 5.0m apparent
5. Grades are rounded to two decimal places. Tonnages are rounded to two significant figures
6. Any minor apparent discrepancies for sums in the table are related to rounding
7. The period for economic extraction is from Sept 2024 until April 2027
8. Ore Reserve converted from Mineral Resource is based on the October 2024 Mineral Resource report by Caitlin Rowett (Hillgrove Resources Limited) and Sonia Konopa (ERM)
titled “Kavanagh, Nugent & North Kavanagh Underground Mineral Resource Estimate”, as at 30th September 2024
9. Ore Reserve Competent Person: Tom Bailey MAusIMM (#206304)
10. Mining has commenced and observed ground conditions have been very good. Further geotechnical investigation is required to increase confidence in the stable mining spans
Mineral Resources and Ore Reserves continued
10 18 October 2024 – Maiden Kanmantoo underground Ore Reserve and 96%
increase in Copper Mineral Resource endowment
FINANCIAL
REPORT
SUSTAINABILITY
REPORT
ANNUAL
REPORT
14
HILLGROVE RESOURCES LIMITED
2024 ANNUAL REPORT
JORC Code 2012 and ASX
Listing Rules, governance
and internal controls
The annual statement of Mineral Resources
and Ore Reserves has been prepared
in accordance with the 2012 Edition of
the ‘Australasian Code for Reporting of
Exploration Results, Mineral Resources and
Ore Reserves’ (the JORC Code 2012) and
the ASX Listing Rules. The Mineral Resource
and Ore Reserve summaries are tabulated on
the following pages.
Hillgrove reports its Mineral Resources and
Ore Reserves on an annual basis with Mineral
Resources inclusive of Ore Reserves. All
Mineral Resource and Ore Reserve estimates
and procedures are subject to internal and
external review by qualified professionals.
All Competent Persons named by Hillgrove
are suitably qualified and experienced as per
minimum acceptable requirements defined in
the JORC Code 2012 Edition.
Competent Persons’ Statement
Exploration Results
The information in this Report (Exploration Highlights section) that relates to the previously
reported exploration results has been compiled by Competent Person Caitlin Rowett and is
extracted from ASX releases entitled “Cu-Au and Cu-Mo Zones Uncovered by Exploration”,
“Underground Drilling Extends Kanmantoo Mineralisation”, “Hillgrove Resources Limited
Report for the Quarter Ended 30 September 2024”, “Hillgrove Resources Limited Report
for the Quarter Ended 31 December 2024” and dated 29 April 2019, 23 May 2024,
23 October 2024 and 21 January 2025 respectively and are available to view at
www.hillgroveresources.com.au. Caitlin Rowatt holds equity in Hillgrove Resources Limited.
The Company confirms that it is not aware of any new information or data that materially
affects the information included in the original market announcement and that the form and
context in which the Competent Person’s findings are presented have not been materially
modified from the original market announcement.
Mineral Resources and Ore Reserves
The information in this Report that relates to the Mineral Resources and Ore Reserves listed
in Tables 3 and 4 is extracted from Hillgrove’s ASX announcement titled “Maiden Kanmantoo
Underground Ore Reserve and 96% Increase in Copper Mineral Resource Endowment”
dated 18 October 2024 available to view at www.hillgroveresources.com.au. This Report fairly
represents information and supporting documentation prepared by the Competent Person
whose name appears in the same row of Table 5 below, and who consents to the inclusion
in this report of the matters based on their information in the form and context in which it
appears. Each person named in the table below has sufficient experience which is relevant to
the style of mineralisation and types of deposits under consideration and to the activity which
they have undertaken to qualify as a Competent Person as defined in the 2012 Edition of the
‘Australasian Code for Reporting of Exploration Results, Mineral Resources and
Ore Reserves’.
The Company confirms that it is not aware of any new information or data that materially
affects the information included in the original market announcement, except for changes
due to normal mining depletion during the six months ending 31 December 2024, and that
all material assumptions and technical parameters underpinning the estimates in the relevant
market announcement continue to apply and have not materially changed. The Company
confirms that the form and context in which the Competent Persons’ findings are presented
have not been materially modified from the original market announcement.
Caitlin Rowett is employed on a fulltime basis by Hillgrove Resources Limited and holds equity
in the Company. Sonia Konopa is a fulltime employee of ERM (and part of the Sustainable
Mining Services Team). Tom Bailey is employed by AMC Consultants.
The information in this Report that relates to the 2022 Mineral Resource Estimate for Nugent
and Kavanagh were initially reported by the Company to the ASX on the 26 July 2022 in
release titled “Updated Nugent Mineral Resources Estimate” and 11 May 2022 in release
titled “Updated Kavanagh Underground Mineral Resources Estimate”. Further information is
available at www.hillgroveresources.com.au
Table 5: Competent Persons list for the Kanmantoo Mineral Resources and
Ore Reserves
Deposit
Competent Person
Membership
Status
Mineral Resource
Exploration results, exploration targets,
historic Mineral Resources, data inputs
including domain models
Caitlin Rowett
AusIMM
Member
Kavanagh, North Kavanagh, Nugent,
Emily Star
Sonia Konopa
AusIMM
Fellow
Ore Reserves
Kanmantoo Maiden Ore Reserve
Tom Bailey
AusIMM
Member
Mineral Resources and Ore Reserves continued
15
HILLGROVE RESOURCES LIMITED
2024 SUSTAINABILITY REPORT
Sustainability
Report
for the year ended 31 December
2024
Producing a
critical material
for a sustainable
future
About this report
Acknowledgement of Country
16
HILLGROVE RESOURCES LIMITED
2024 SUSTAINABILITY REPORT
Contents
SUSTAINABILITY REPORT
Sustainability Overview 2024
17
A Foreword from our Chair
18
Our Approach to Sustainability
19
Materiality Assessment
20
Proposed Material Sustainability Topics
21
Mapping of Material Sustainability Topics
23
Our Performance, Commitments and Long-term Goals
24
Governance
25
Environment
28
Social
34
Forward looking statement
This Report contains or may contain certain forward-looking statements and
comments about future events, that are based on Hillgrove’s beliefs, assumptions and
expectations and on information currently available to management as at the date of
this presentation. Often, but not always, forward-looking statements can generally be
identified by the use of forward-looking words such as “may”, “will”, “expect”, “plan”,
“believes”, “estimate”, “anticipate”, “outlook”, and “guidance”, or similar expressions,
and may include, without limitation, statements regarding plans, strategies and
objectives of management, anticipated production and production potential, financial
forecasts, product quality estimates of future Mineral Resources and Ore Reserves.
Such statements are only expectations or beliefs and are subject to inherent risks and
uncertainties which could cause actual values, results or performance achievements
to differ materially from those expressed or implied in this announcement. Where
Hillgrove expresses or implies an expectation or belief as to future events or results,
such expectation or belief is expressed in good faith and on a reasonable basis. No
representation or warranty, express or implied, is made by Hillgrove that the matters
stated in this presentation will in fact be achieved or prove to be correct. Except as
required by law, Hillgrove undertakes no obligation to provide any additional or updated
information or update any forward-looking statements whether on a result of new
information, future events, results or otherwise. Readers are cautioned against placing
undue reliance on forward-looking statements. These forward-looking statements
are not guarantees of future performance and involve known and unknown risks,
uncertainties, assumptions and other important factors, many of which are beyond
the control of Hillgrove, the directors, and management of Hillgrove. These factors
include, but are not limited to difficulties in forecasting expected production quantities,
the potential that any of Hillgrove’s projects may experience technical, geological,
metallurgical and mechanical problems, changes in market prices and other risks
not anticipated by Hillgrove, changes in exchange rate assumptions, changes in
product pricing assumptions, major changes in mine plans and/or resources, changes
in equipment life or capability, emergence of previously underestimated technical
challenges, increased costs, and demand for production inputs.
Hillgrove acknowledges the Peramangk and Kaurna people, the Traditional
Owners and Custodians of the lands on which we live and operate. We
pay our respects to Elders past and present and acknowledge their
continuing connection to waters, skies, seas and country.
This Sustainability Report (Report) published on 4 April 2025 is a
summary of Hillgrove Resources Limited’s (ASX: HGO) material
sustainability topics and performance for the calendar year, 1 January
2024 to 31 December 2024. It covers our 100% owned Kanmantoo
operation and exploration activities at Kanmantoo, South Australia.
This Report should be read in conjunction with the 2024 Annual
Report and 2024 Financial Report for information relating to our
financial sustainability and performance.
All references to ‘Hillgrove’, ‘the Company’, ‘we’, ‘us’ and ‘our’ refer
to Hillgrove Resources Limited (ACN 004 297 116) and the entities
it controlled, unless otherwise stated. All currency is expressed in
Australian dollars.
This Report has been prepared in line with the Australian Securities
Exchange (ASX) Corporate Governance Recommendation 7.4.
How to navigate this report
This interactive PDF allows you to:
X
X Access information easily
X
X Navigate to different sections of the Report by using
the Contents page or bottom navigation bar
X
X Return to this Contents page by clicking the bottom
: icon
X
X Click on hyperlinks
to reference content externally
or within this Report
Feedback
We welcome your feedback and questions about our
Sustainability performance and Sustainability-related
disclosures. Please direct your enquiries to our Sustainability
Superintendent at esgreporting@hillgroveresources.com.au
This Report has been approved for release by the Board of
Hillgrove Resources Limited.
17
HILLGROVE RESOURCES LIMITED
2024 SUSTAINABILITY REPORT
FINANCIAL
REPORT
SUSTAINABILITY
REPORT
ANNUAL
REPORT
Sustainability Overview 2024
Environment
Progressed the Kanmantoo
Grassy Woodland
Revegetation Program
Commenced preparations
for mandatory reporting on
climate change
Elimination of onsite
diesel generation
and the speed of decarbonisation of the
South Australian grid also continues to
accelerate our reduction in
Scope 2 GHG emissions 1
1. Scope 2 greenhouse gas emissions (GHG) are indirect emissions (i.e. not created onsite) produced from purchased
electricity, steam, heat, or cooling.
2. Local is defined as within a 125km radius from Kanmantoo
Governance
Completion of
sustainability materiality
assessment
Climate Change
Position Statement
published
Social
Chairman’s Award
at South Australia’s
Emergency Response
Competition
Completion of maturity assessment
against Australian Sustainability Standards
Board S2 Mandatory
Climate Reporting Requirements
Zero fines or sanctions for
non-compliance with environmental,
social or economic laws
and regulations
14%
decrease in TRIF
(Dec 24: 13.1 vs Dec 23: 15.3)
(per million hours worked)
18.3%
Female
employees
$48.9m
Contributions to local
businesses and organisations
98
New employees
in 2024
95%
of workforce
is local 2
Sustainability Overview 2024
A Foreword from our Chair
Our Approach to Sustainability
Materiality Assessment
Proposed Material Sustainability Topics
Mapping of Material Sustainability
Our Performance, Commitments and Long-term Goals
Governance
Environment
Social
:
FINANCIAL
REPORT
SUSTAINABILITY
REPORT
ANNUAL
REPORT
18
HILLGROVE RESOURCES LIMITED
2024 SUSTAINABILITY REPORT
This Sustainability Report covers a milestone
year for Hillgrove as the Kanmantoo mine
successfully transitioned to commercial
copper production. While the transition offers
us significant growth opportunities, we are
aware of the changing sustainability footprint
commercial mining operations bring. As such,
we have fulfilled our commitment to update
our materiality assessment to reflect our new
operational circumstances. The updated
materiality matrix is featured in this report, with
new key performance indicators (KPIs) and
goals to be mapped against the matrix in the
coming year. In the meantime, I am pleased
to be able to report on significant progress
made across our current KPIs, not least in key
areas including climate transition planning,
and biodiversity.
At our Kanmantoo copper operation, we
are uniquely positioned to contribute
meaningfully to the global energy transition.
Located 55 kilometres from Adelaide, the
site continues to benefit from connection to
one of Australia’s greenest grids, drastically
reducing our Scope 2 emissions. Building on
this advantage, we are currently updating our
GHG Scope 1, 2, and 3 baseline assessment
in order to develop a practical, implementable
emissions reduction plan aligned to our mine
plans. This process also forms part of our
preparations to meet the new mandatory
reporting requirements under the Australian
Sustainability Standards Board’s (S2) Climate-
related Disclosures 1. This preparation work
will be completed over the next twelve
months, and we look forward to including the
results of this work in next year’s report.
Our unique location also enables us to deliver
significant local economic benefit to the
communities near our operations. While our
philanthropic activity continues, I am most
proud of the direct economic impact we are
having on local incomes and employment.
Over the last year, 98 new employees joined
our predominantly local workforce.
These achievements and plans, plus
further highlights outlined below, reflect our
determination to continuously improve our
environmental, social, and governance (ESG)
practices. This work is currently focused on
our operational mine at Kanmantoo but will
be carried through to any future projects as
we expand.
A Foreword from our Chair
Derek Carter
Chair
Key 2024 highlights:
X
X Achieved a 14% reduction in Total
Recordable Injury Frequency (TRIF),
though we recognise that more work
is needed to ensure the safety of
our workforce
X
X Elimination of onsite diesel generation
and the speed of decarbonisation
of the South Australian grid also
continues to accelerate our reduction
in Scope 2 emissions
X
X Progressed the Kanmantoo Grassy
Woodland Revegetation Program
- establishing an important multi-
kilometre greenbelt which connects
the existing mining rehabilitation
works at Kanmantoo with regional
vegetation initiatives - providing
linkages for ground-based fauna and
birdlife between disparate vegetation
patches and restoring important
ecological diversity to the region
X
X Maintained an almost entirely
residential workforce demonstrating
our strong commitment to local
employment
X
X Supported our local communities
through sponsorships, donations
and traineeships
X
X Published our Climate Change
Position Statement
X
X Completed a materiality assessment,
supported by an external
sustainability consultant, to identify
new Sustainability topics material to
our business
Looking ahead, our focus for 2025
includes:
X
X Continuing to support the Kanmantoo
Grassy Woodland Revegetation
Program
X
X Continuing to play an active role in the
Kanmantoo Callington Community
Consultative Committee (K4C) -
$50,000 in funding is pledged to move
the K4C Master Plan from conceptual
to scoping stage
X
X Completion of a Climate Change Risk
Assessment of our operations
X
X Further informing and validating of
new material sustainability topics
with external stakeholders to ensure
alignment with emerging expectations
and best practices
X
X Improving our reporting alignment
with global sustainability reporting
frameworks, and preparing for
upcoming mandatory climate
change reporting
We are committed to implementing and
upholding high standards in our sustainability
practices to create enduring value for our
shareholders and broader communities and
to achieve our vision of becoming a mid-
tier, multi-asset Australian copper producer,
unlocking value for a sustainable future.
Thank you for your ongoing support and
confidence in our Company.
Yours sincerely,
Derek Carter
Chair of the Board, Hillgrove Resources
1. https://www.energymining.sa.gov.au/industry/modern-
energy/leading-the-green-economy
Sustainability Overview 2024
A Foreword from our Chair
Our Approach to Sustainability
Materiality Assessment
Proposed Material Sustainability Topics
:
Mapping of Material Sustainability
Our Performance, Commitments and Long-term Goals
Governance
Environment
Social
19
HILLGROVE RESOURCES LIMITED
2024 SUSTAINABILITY REPORT
FINANCIAL
REPORT
SUSTAINABILITY
REPORT
ANNUAL
REPORT
Vision, Values and Sustainability Principles
Our strategic values of Safety, Integrity and Delivery support
the Company’s vision of being a mid-tier, multi-asset Australian
copper producer unlocking value for a sustainable future.
We are dedicated to creating shared value for all our stakeholders
while achieving sustainable practices that minimise environmental
impact, reduce greenhouse gas emissions, support social
well-being, and promote economic viability.
Our vision and values are supported by our alignment with the
ICMM Mining Principles which respond to evolving societal
expectations of the mining and metals industry.
Our Approach to Sustainability
SAFETY
We operate safely, protect each other and the environment
and leave a positive legacy for future generations
INTEGRITY
We are respectful, ethical and trustworthy, we do
what is ‘right’ not just what we have to do
DELIVERY
We hold ourselves accountable for the delivery of
sector leading results, what we are known for
Sustainability Policy
Our Sustainability Policy outlines our commitments to
Sustainability which include:
X
X Actively engaging with Local Communities to address their
concerns and share benefits
X
X Prioritising the Health and Safety of employees, contractors,
and local communities
X
X Maintaining Stewardship in Land Disturbance and
rehabilitating disturbed areas for post-mining use
X
X Implementing Water Management practices to protect local
water sources from depletion or contamination
X
X Responsibly managing Waste Material to minimise
environmental harm
X
X Conducting operations in a manner that preserves local
Ecosystems and Biodiversity
X
X Acknowledging and respecting Indigenous Rights and Cultural
Heritage in our interactions
X
X Upholding Transparency, Integrity, and Ethical Practices in all
business dealings
X
X Contributing to the Local Economy through employment, skills
development, and procurement from local suppliers
X
X Innovating for a more sustainable future
The implementation and monitoring of our Sustainability Policy is
overseen by our Audit and Risk Committee.
Sustainability Standards
A suite of Sustainability Standards (Environment, Community
and Social, Safety and Health) has been published to provide
guidance to the Board, sub-committees, assets, projects and
stakeholders regarding:
X
X Objectively and demonstrably achieving the intent of our
Sustainability Policy
X
X Important focal areas that have the potential to materially
affect our business operations
X
X Prescribe the level of risk tolerance and minimum performance
requirements on each subject
X
X Provision of a consistent framework for day-to-day decision
making and risk management
X
X Our capacity to meet corporate governance expectations and
regulatory compliance
X
X Benchmark criteria for conducting auditing of our assets
and projects
X
X Ways of improving shared value among stakeholders
Information on our Corporate Governance framework is provided
in the Governance section of this Report and key documents are
available to view in the Corporate Governance section of
our website.
Sustainability Overview 2024
A Foreword from our Chair
Our Approach to Sustainability
Materiality Assessment
Proposed Material Sustainability Topics
Mapping of Material Sustainability
Our Performance, Commitments and Long-term Goals
Governance
Environment
Social
:
FINANCIAL
REPORT
SUSTAINABILITY
REPORT
ANNUAL
REPORT
20
HILLGROVE RESOURCES LIMITED
2024 SUSTAINABILITY REPORT
In line with our previous commitments,
we have updated our materiality
assessment this year to reflect the
progression to operational status at
Kanmantoo. We engaged external
sustainability consultants, JBS&G to
conduct our latest assessment.
The update involved a scan of existing
identified material environment, social
and governance (ESG) topics, as well as
a cross check against current industry
standards including the Sustainability
Accounting Standards Board (SASB)
Metals and Mining Standard, the GRI 14
Mining Sector Standard and the topics
presented by the Responsible Minerals
Initiative (RMI) Risk Readiness Assessment.
Using these standards and the previous
iteration of our materiality matrix as a
baseline, we have updated certain topic
definitions, added new topics where
necessary, and reviewed topic priority
levels to reflect the core values of our
business and their relevance to the way
we operate.
Further external stakeholder consultation
to inform and validate our latest topics
and their prioritisation is being completed
in 2025.
Materiality Assessment
Key findings from the assessment were:
X
X Closure, Rehabilitation & Tailings Management remain the top material topics for the
business. This is due to relevance within current operations as well as the tangible
impacts to our business if commitments in this area are not met or properly managed
X
X The largest change to the environment topics was Climate Adaptation & Resilience.
As mining operations have now recommenced at Kanmantoo, the business now has
a heightened potential contributory risk to climate change as well as an increase in
potential vulnerability to the environmental impacts of a changing climate. We have
committed to completing a climate change risk assessment on our operations to
ensure the effects of climate change are properly intertwined within business risk
management and strategy planning. This topic has also increased in materiality due to
legislative changes that have come into effect within Australia, which has guided us to
prepare for climate-related reporting in line with AASB S2 Climate-related Disclosures
X
X First Nations Engagement & Cultural Heritage was added as a new topic within this
assessment and was scored to reflect that while this topic doesn’t currently have a
large impact on the business due to the specific site locations we are working from,
we are committed to consistent, transparent and meaningful engagement
X
X After reviewing the various industry standards, Legal Compliance was added as a
material topic and scored accordingly as while there is low risk of not meeting our
compliance requirements, we want to demonstrate and prioritise our commitment
to go beyond just compliance when it comes to the legislative and regulatory
requirements of our operations
While the material topics have been updated, this Report retrospectively reports on
our progress against the KPIs and topics from last year. From next year onwards we
will commence reporting against these new topics with KPIs being updated accordingly.
Throughout this Report, where applicable, we have noted within the topic performance
tables how each of the current material topics will be mapped across to next year’s
reporting against the new topics.
Sustainability Overview 2024
A Foreword from our Chair
Our Approach to Sustainability
Materiality Assessment
Proposed Material Sustainability Topics
:
Mapping of Material Sustainability
Our Performance, Commitments and Long-term Goals
Governance
Environment
Social
21
HILLGROVE RESOURCES LIMITED
2024 SUSTAINABILITY REPORT
FINANCIAL
REPORT
SUSTAINABILITY
REPORT
ANNUAL
REPORT
In this Report, a material sustainability topic is one that reflects significant potential for economic, environmental and/or social
impacts and risks arising from, and impacting, our operations and value chain, or one that has potential to substantively influence the
assessments and decisions of our stakeholders and our business. Our proposed material topics for 2025 are as follows.
Topic
Definition
Climate Adaptation & Resilience
How an organisation contributes to and adjusts to current and anticipated climate change-
related risks and opportunities, as well as how it contributes to the ability of societies and
economies to withstand impacts from climate change.
Water Use & Management
Impacts related to the withdrawal and consumption of water and the quality of water
discharged.
Conservation & Biodiversity
Impacts on biodiversity, including on genetic diversity, animal and plant species, and natural
ecosystems.
Closure, Rehabilitation &
Tailings Management
Approach to closure and rehabilitation, including how the organisation considers the impacts
on the environment, local communities, and workers.
Tailings are a by-product of mining that need management throughout the life of a mine and
beyond closure.
Workforce Health & Safety
Impacts related to workers’ health and safety, including implementation of systems to
manage emergency responses, prevent and remedy adverse impact.
Waste & Hazardous Materials
Management
Impacts from waste and the management of waste.
Community Relations
Community engagement strategies to manage risks and opportunities associated with
socioeconomic, cultural, health, and human rights impacts on local communities.
Labour Practices
An organisation’s approach to job creation, terms of employment, and working conditions
for its workers. This topic also covers the employment and working conditions in an
organisation’s supply chain.
Business Ethics & Transparency
Management of business ethics (including anti-corruption and anti-bribery) and transparency
in payments to governments or individuals.
Sustainability Management &
Reporting
Corporate transparency and accountability, and promoting informed decision making through
the publication of annual reports on material environmental, social and governance issues.
Air Quality
Management of pollutants that have negative impacts on air quality and ecosystems,
including human and animal health.
Diversity, Equity & Inclusion
The ensuring of equity for all persons in the workplace, respecting the diversity of all workers,
and fostering an organisational culture of inclusivity and respect for fundamental rights and
dignity.
Sustainable Sourcing
Integration of environmental, social, and governance criteria into a company’s procurement
processes and decisions regarding purchased goods, services, and materials.
Legal Compliance
The implementation of high standards of business conduct through compliance with
applicable national regulatory requirements, applicable cross-jurisdictional obligations and
international law.
First Nations Engagement &
Cultural Heritage
Consideration of the cultural rights of affected stakeholders through the implementation of a
system to prevent, and remedy adverse impact to cultural heritage.
Proposed Material Sustainability Topics
Sustainability Overview 2024
A Foreword from our Chair
Our Approach to Sustainability
Materiality Assessment
Proposed Material Sustainability Topics
Mapping of Material Sustainability
Our Performance, Commitments and Long-term Goals
Governance
Environment
Social
:
FINANCIAL
REPORT
SUSTAINABILITY
REPORT
ANNUAL
REPORT
22
HILLGROVE RESOURCES LIMITED
2024 SUSTAINABILITY REPORT
Water Use & Management
Climate Adaption & Resiliance
Conservation & Biodiversity
Business Ethics & Transparency
Labour Practices
Sustainability Management & Reporting
Air Quality
Waste & hazardous Materials Management
Diversity, Equity & Inclusion
First Nations Engagement & Cultural Heritage
Legal Compliance
Sustainable Sourcing
Closure, Rehabilitation
& Tailings Management
Workforce Health & Safety
Community Relations
IMPACT ON BUSINESS
IMPACT ON EXTERNAL STAKEHOLDERS
Proposed Material Sustainability Topics continued
Current Sustainability Materiality Matrix
Proposed Sustainability Materiality Matrix
Sustainability Overview 2024
A Foreword from our Chair
Our Approach to Sustainability
Materiality Assessment
Proposed Material Sustainability Topics
:
Mapping of Material Sustainability
Our Performance, Commitments and Long-term Goals
Governance
Environment
Social
23
HILLGROVE RESOURCES LIMITED
2024 SUSTAINABILITY REPORT
FINANCIAL
REPORT
SUSTAINABILITY
REPORT
ANNUAL
REPORT
Hillgrove materiality alignment with SASB Metals and Mining Relevant Issue indicator,
UN Sustainable Development Goals (SDGs), and ICMM Performance Principles
HGO Material Topic
SASB Mining and Metals
Disclosure Topic
Related
SDGs
ICMM Mining Principles
HGO Report Cross Walk
Climate Adaptation
& Resilience
Greenhouse Gas
Emissions
SDG 7,
SDG 13
Principle 6:
Environmental Performance
Page 28
Energy Management
SDG 7,
SDG 12
Principle 6:
Environmental Performance
In development
Air Quality
Air Quality
SDG 3,
SDG 11
Principle 6:
Environmental Performance
In development
Water Use &
Management
Water Management
SDG 6,
SDG 12
Principle 6:
Environmental Performance
Page 30
Waste & Hazardous
Materials Management
Waste & Hazardous
Materials Management
SDG 12
Principle 6:
Environmental Performance
In development
Conservation &
Biodiversity
Biodiversity Impacts
SDG 14,
SDG 15
Principle 7:
Conservation of Biodiversity
Page 31
First Nations
Engagement & Cultural
Heritage
Security, Human Rights
& Rights of Indigenous
Peoples
SDG 10,
SDG 16
Principle 3:
Human Rights
In development
Community Relations
Community Relations
SDG 11,
SDG 16
Principle 9:
Social Performance
Page 35
Labor Practices
Labor Practices
SDG 8
Principle 3:
Human Rights
Page 37
Workforce Health &
Safety
Workforce Health &
Safety
SDG 3,
SDG 8
Principle 5:
Health and Safety
Page 39
Business Ethics &
Transparency
Business Ethics &
Transparency
SDG 16
Principle 1:
Ethical Business
Page 27
Closure, Rehabilitation
& Tailings Management
Tailings Storage
Facilities Management
SDG 6,
SDG 15
Principle 6:
Environmental Performance
Page 33
Sustainability
Management &
Reporting
SDG 16
Principle 2:
Decision Making
Whole report
Diversity, Equity &
Inclusion
SDG 5,
SDG10
Principle 3:
Human Rights
Page 38
Sustainable Sourcing
SDG 12
Principle 9:
Social Performance
Page 36
Legal Compliance
SDG 16
Principle 1:
Ethical Business
Page 27
Mapping of Material Sustainability Topics
Sustainability Overview 2024
A Foreword from our Chair
Our Approach to Sustainability
Materiality Assessment
Proposed Material Sustainability Topics
Mapping of Material Sustainability
Our Performance, Commitments and Long-term Goals
Governance
Environment
Social
:
FINANCIAL
REPORT
SUSTAINABILITY
REPORT
ANNUAL
REPORT
24
HILLGROVE RESOURCES LIMITED
2024 SUSTAINABILITY REPORT
We are committed to setting meaningful medium-term and long-term targets to improve our
performance and our impact linked to the Sustainability topics material to our business. Through
the annual Sustainability Report, we are also committed to continually monitoring action taken in
these areas and disclosing this information publicly.
For this Sustainability Report, which covers the Kanmantoo mine site, we map out the actions
and achievements delivered to date based on the 2024 material topics where they are relevant,
including actions and achievements delivered during the year.
Our next Sustainability Report will report against the proposed material topics provided in this
Report following validation of these topics during 2025, applying industry standards and metrics
where possible.
Our Performance, Commitments and Long-term goals
Our Sustainability Report allows us to communicate our
Sustainability performance to our stakeholders and keeps us
accountable to our commitments.
In 2024, we are pleased to report that the transition to
underground production at the Kanmantoo Copper Mine has
resulted in the provision of a further 98 jobs bringing the the total
number of employees to 183, with 95% of our workforce drawn
from the region. Additionally, our regional spend increased to
$48.9 million, supporting 201 local businesses in 2024.
Strengthening relationships with the communities that neighbour
our operations remains a priority, exemplified by our collaboration
on the Kanmantoo Grassy Woodland Revegetation Program.
A key environmental milestone achieved was the elimination of
onsite diesel generation, while the rapid decarbonisation of the
South Australian grid has further accelerated our reductions in
Scope 2 greenhouse gas emissions.
We remain committed to driving positive environmental and
social outcomes while delivering sustainable value for
our stakeholders.
Bob Fulker
CEO and Managing Director,
Hillgrove Resources
Sustainability Overview 2024
A Foreword from our Chair
Our Approach to Sustainability
Materiality Assessment
Proposed Material Sustainability Topics
:
Mapping of Material Sustainability
Our Performance, Commitments and Long-term Goals
Governance
Environment
Social
25
HILLGROVE RESOURCES LIMITED
2024 SUSTAINABILITY REPORT
FINANCIAL
REPORT
SUSTAINABILITY
REPORT
ANNUAL
REPORT
Shareholders
Board of Directors
Board
Sub-Committees
Remuneration
Committee
Audit & Risk
Committee
Nomination
Committee
Delegation of
Authority
Site
Leadership Team
Policies, Standards
and Procedures
Intergrated Risk
Management
Corporate Culture,
Values & Behaviours
Governance and ethics
Approach
Governance
We are committed to complying with all relevant laws and regulations,
reporting and disclosing accurately to stakeholders, and acting ethically
and transparently.
Our Corporate Governance Statement reports against the ASX Corporate
Governance Council’s Fourth Edition Corporate Governance Principles
and Recommendations. Throughout the reporting period that ended 31
December 2024, the Directors believe that our governance arrangements
align with the fourth edition of the ASX Corporate Governance Council’s
Corporate Governance Principles and Recommendations.
Where the Company’s corporate governance practices do not meet with
all the practices recommended by the Council, or the Board does not
consider it practicable or necessary to implement, the Board’s reasoning
for any departure is explained in the Corporate Governance Statement.
As per Recommendation 7.4, this Report details information on the
management of Hillgrove’s material environmental and social risks.
Our Corporate Governance Statement is available to view in the
Corporate Governance section of our website.
Board of Directors
The Board of Directors holds ultimate responsibility for
our Sustainability Strategy, including setting priorities and
evaluating performance. Additionally, the Board conducts a
formal review and grants final approval for our Sustainability
Report.
To support its work, the Board is assisted by the: Audit and
Risk Committee; Nomination Committee and Remuneration
Committee.
The Audit and Risk Committee, as outlined in its
Charter, is tasked with overseeing the Company’s audit
processes including the Company’s internal financial
and business control activities. It reports its findings and
recommendations directly to the Board.
Before the Board’s final approval, the Audit and Risk
Committee reviews the Sustainability Report to ensure all
material topics are appropriately addressed and endorsed
for publication.
Corporate Governance framework
The Corporate Governance Framework for 2024 is provided below.
Sustainability Overview 2024
A Foreword from our Chair
Our Approach to Sustainability
Materiality Assessment
Proposed Material Sustainability Topics
Mapping of Material Sustainability
Our Performance, Commitments and Long-term Goals
Governance
Environment
Social
:
FINANCIAL
REPORT
SUSTAINABILITY
REPORT
ANNUAL
REPORT
26
HILLGROVE RESOURCES LIMITED
2024 SUSTAINABILITY REPORT
Governance and ethics continued
Governance continued
Modern Slavery
We are committed to upholding respect for
human rights and the right for people to be
free from forced labour and other forms of
modern slavery in our operations and supply
chains.
Our commitments to eradicate modern
slavery include:
X
X Integrating and incorporating human
rights due diligence steps into all other
relevant existing policy documents, such
as human resources or procurement
policies or procedures, or employee
handbooks or codes of conduct.
X
X Assessing human rights impacts and
risks within the broader organisational risk
profile.
X
X Undertake human rights due diligence on
suppliers and service providers to identify,
prevent, mitigate, and account for how
suppliers and service providers address
their human rights impacts.
X
X Conduct hotspot analysis to better
understand the risk of causing,
contributing to, or being directly linked to
modern slavery.
X
X Establish processes to enable effective
remediation for any adverse human rights
impacts which the business causes or
contributes to.
X
X Encouraging transparency and
accountability in all business dealings.
See our Modern Slavery Policy for
information on: risk identification and
management; due diligence expectations
of our suppliers and service providers;
reporting and grievance mechanisms; and
training and awareness.
Our Modern Slavery Policy applies to all
employees, contractors, suppliers, and
business partners engaged with Hillgrove
Resources across all operational sites and
corporate offices globally.
Review of Corporate
Governance documents
The following policies/codes/charters/
statements were created or reviewed in
2024/2025 and are available to view in
the Corporate Governance section of
our website:
X
X Climate Change Position Statement
X
X Corporate Governance Statement
X
X Modern Slavery Policy
X
X Sustainability Policy and associated
Sustainability Standards – Community
and Social, Environment, Safety
and Health
X
X Diversity, Equity and Inclusion Policy
Board diversity
As of 31 December 2024, Hillgrove’s Board
has four members (100% male); three are
independent, non-executive Directors and
one executive. As the Company grows
and evolves, it will look to increase the
participation of women on the Board, in
alignment with the Australian Government’s
Workplace Gender Equality Agency (WGEA)
and the ASX recommendations target of
no less than 30% female representation
on the Board.
Management and review
of risks
We are committed to ensuring our strategic
planning and business operations align with
our corporate governance obligations in
managing risk and enhances the developing
of a risk culture of informed decision making.
We evaluate risk at all levels of the
organisation and base our decisions on our
risk tolerance and risk appetite levels as
defined by the Executive Team and Board.
We regularly monitor our risk management
performance and through our Risk and Audit
Committee we conduct regular internal
and external auditing of our business
performances to ensure ongoing compliance
with specific corporate governance
obligations and effectiveness of our decision
making process.
Our Risk Management Policy currently
forms part of the internal controls and
corporate governance arrangement of the
Company. This policy will be replaced by the
Enterprise Risk Management Framework and
Risk Management Standard in 2025.
The Board is responsible for the overall
oversight of risk management of the
Company and reviews the risk management
register half-yearly, or as required upon
escalation of high priority risks. The Audit
and Risk Committee assists the Board in
relation to risk management and also reviews
the adequacy and effectiveness of the risk
management framework.
Anti-bribery and fraud
We aim to promote the prevention,
identification, reporting and investigating
of fraud and corruption and to educate
employees on identifying fraud and reducing
potential for fraud through mitigation
procedures.
Our Fraud and Corruption Policy applies
to all employees, contractors, suppliers, and
business partners engaged with Hillgrove
Resources across all operational sites and
corporate offices globally.
Whistleblower
Our Whistleblower Policy describes the
framework and mechanisms that allow and
enable persons to report legitimate concerns
regarding misconduct, illegal activities, or
unethical behaviour in connection with the
Company’s operations and to ensure that
whistleblowers are protected from retaliation.
The implementation and monitoring of our
Whistleblower Policy and its framework is
overseen by the Audit & Risk Committee and
reported to the Board.
The policy applies to all current and former
employees, officers, contractors, suppliers,
consultants, and associates of the Company
and their relatives.
Sustainability Overview 2024
A Foreword from our Chair
Our Approach to Sustainability
Materiality Assessment
Proposed Material Sustainability Topics
:
Mapping of Material Sustainability
Our Performance, Commitments and Long-term Goals
Governance
Environment
Social
27
HILLGROVE RESOURCES LIMITED
2024 SUSTAINABILITY REPORT
FINANCIAL
REPORT
SUSTAINABILITY
REPORT
ANNUAL
REPORT
Governance continued
Governance and ethics continued
Performance
Actions/Achievements
Commitments
Long-term goals
2025 Material Topic
Review of materiality assessment
and materiality matrix.
Validate material topics and
materiality matrix with external
stakeholders
Continue to ensure
governance is in
accordance with
Australian Institute of
Company Directors
(AICD) best practice
recommendations
and ASX Corporate
Governance Principles.
Business Ethics
and Transparency
and
Legal Compliance.
Developed (and published)
Sustainability Policy, Modern
Slavery Policy, Diversity, Equity
and Inclusion Policy, and Climate
Change Position Statement.
Commenced development of
Sustainability Standards.
Develop and publish the
following polices: Business
Planning, People and Culture,
Data and Communication,
Commercial and Corporate
Governance along with their
associated standards.
Whistleblower policy reviewed.
No Whistleblower complaints were
received – no action required.
100% of whistleblower
complaints investigated and
addressed.
Full record of legal and regulatory
compliance during exploration,
open pit operations, care
and maintenance, and the
underground mining.
Comply with all relevant
laws and regulations, report
and disclose accurately to
stakeholders.
Adherence to a governance
framework that is reviewed
regularly and upgraded or
changed as appropriate to reflect
the Company’s interests, changes
in law and what is generally
regarded as sound practice.
No governance incidents or
concerns raised during 2024.
Sustainability Overview 2024
A Foreword from our Chair
Our Approach to Sustainability
Materiality Assessment
Proposed Material Sustainability Topics
Mapping of Material Sustainability
Our Performance, Commitments and Long-term Goals
Governance
Environment
Social
:
FINANCIAL
REPORT
SUSTAINABILITY
REPORT
ANNUAL
REPORT
28
HILLGROVE RESOURCES LIMITED
2024 SUSTAINABILITY REPORT
Approach
Hillgrove has a strong record of
environmental stewardship, and we remain
committed to managing and mitigating
the impacts our operations have on the
environment. We also acknowledge the
potential impact of broader changes to the
environment and climate on our ability to
operate as a business, not least now that
mining has recommenced at Kanmantoo.
Conservation and
biodiversity
At the local level, our priority is to minimise
impact on the local environment and act
as an enabler and accelerator for native
revegetation, biodiversity, and conservation
through our land management and
restoration. We are proud of our record to
date having progressively rehabilitated 122
hectares of land. Our financial and in-kind
support for the establishment of a regional
greenbelt also continues. Since supporting
the community to secure a $1.3 million grant
from the Native Vegetation Council in 2023,
our team have been involved in the project,
underlining our continued commitment to
connect our mine rehabilitation activity with
revegetation initiatives in the Adelaide Hills
region.
Beyond our regulatory responsibilities, we
are also exploring the viability of trialling
the application of the Taskforce on Nature-
Related Financial Disclosure (TNFD) process
in our future sustainability reporting.
We view the control and management
of our tailings storage facilities as a
critical responsibility. With ore processing
resuming in 2024, maintaining effective
management of our tailings storage facilities
is a top priority. Our focus is on ensuring
the safe, long-term containment of mine
tailings and residues, preventing any
uncontrolled environmental releases. We
commit to regular compliance reporting
and external inspections, emphasising
impoundment stability, structural integrity,
risk assessments, planning coordination,
and efficient water management.
Environment
Climate Adaption and Resilience
Approach
Our strategic approach to Climate Change management focuses on managing threats
and opportunities through effective climate change planning and management,
regulatory compliance and reporting, and stakeholder consultation.
Regarding climate mitigation, our connection to the grid has enabled us to stop all
diesel generation onsite, while in turn, the speed of decarbonisation of the South
Australian grid also continues to accelerate our reduction in Scope 2 emissions.
However, we want to do more to understand, control, and reduce our GHG emissions
footprint. As such, we have commissioned an external sustainability consultant to
complete an independent baseline assessment of our Scope 1, 2, and 3 emissions and
develop an emissions reduction strategy to achieve net-zero. We will also begin publicly
disclosing our Scope 1 and 2 data from 2025.
We are committed to embedding climate resilience into our business by factoring
climate risks into our existing risk management framework. At the same time, we are
working towards the creation of resilient mining landforms and revegetation programs
that consider the changing climate. To this end, in parallel with our GHG emissions
project, our sustainability consultant is completing a comprehensive climate change
risk assessment of our operations. A summary of the risk assessment and relevant
adaptation action and planning will be disclosed in our annual reporting from 2025.
Through this work, we will also be ready to disclose under the new mandatory reporting
requirements under the Australian Sustainability Standards Board’s S2 reporting regime.
Sustainability Overview 2024
A Foreword from our Chair
Our Approach to Sustainability
Materiality Assessment
Proposed Material Sustainability Topics
:
Mapping of Material Sustainability
Our Performance, Commitments and Long-term Goals
Governance
Environment
Social
29
HILLGROVE RESOURCES LIMITED
2024 SUSTAINABILITY REPORT
FINANCIAL
REPORT
SUSTAINABILITY
REPORT
ANNUAL
REPORT
Climate Adaption and Resilience continued
Performance
Actions/Achievements
Commitments
Long-term goals
2025 Material Topic
Climate change
Climate Change Position Statement
developed and published.
Undertake a climate change
impact assessment of
Hillgrove’s operations.
Creation of resilient
mining landforms and
revegetation programs
that consider the
changing climate.
Climate Adaptation
and Resilience.
Develop a climate
adaptation plan.
Energy use
Connection to the South Australian
grid has enabled us to stop all diesel
generation onsite, while in turn, the
speed of decarbonisation of the
South Australian grid also continues
to accelerate our reduction in Scope
2 emissions.
Explore further strategic
projects to deliver energy
efficiency.
Climate Adaptation
and Resilience.
Emissions Management
including GHGs
Meeting all commitments under
the Climate Change Act 2022 and
National Greenhouse and Energy
Reporting Act, and exceeding
requirements through our agreed
Community Action Plan.
Undertake a Scope 1 and
Scope 2 GHG baseline
assessment.
Consider
opportunities to further
reduce emissions.
Climate Adaptation
and Resilience.
Develop a high-level GHG
Management Plan.
Establish a Scope 3 inventory
and interim reduction
approach.
Continue to meet National
Energy and Greenhouse
Reporting requirements.
Realtime monitors in use for continual
management of dust emissions and
blast vibration.
Links to relevant documents
Sustainability Policy
Sustainability Standards - Environment
Environment continued
Sustainability Overview 2024
A Foreword from our Chair
Our Approach to Sustainability
Materiality Assessment
Proposed Material Sustainability Topics
Mapping of Material Sustainability
Our Performance, Commitments and Long-term Goals
Governance
Environment
Social
:
FINANCIAL
REPORT
SUSTAINABILITY
REPORT
ANNUAL
REPORT
30
HILLGROVE RESOURCES LIMITED
2024 SUSTAINABILITY REPORT
Water use and management
Approach
Environment continued
Access to safe, clean drinking water is a basic human right, essential to maintaining
healthy ecosystems and is integral to our operation at Kanmantoo.
Our strategic approach to water management focuses on managing water balances,
stormwater, water discharges, seasonal preparations and dewatering activities such that
human health and the environment are protected.
We aim to minimise operational water
consumption, effectively and efficiently use
water in our processes, and ensure that
any effluents are treated to meet required
water quality standards.
Performance
Actions/Achievements
Commitments
Long-term goals
2025 Material Topic
Maximising use of recycled water
including recycled effluent and
recycled water from the pit and
Tailings Storage Facility.
Develop and implement
a risk-based Water
Management Plan.
No reduction in water
availability or quality to the
environment or other users as
a result of the mine’s operation.
No change to topic.
Groundwater monitoring on and
off site. Maintaining the integrity
of storm water runoff.
Continue to maximise usage
of recycled water where
commercially viable.
No discernible impact to local
ground water/waterways/
ephemeral creeks.
No change to topic.
Links to relevant documents
Sustainability Policy
Sustainability Standards - Environment
Construction activities being conducted at the Kanmantoo Tailings Storage Facility in 2024
Sustainability Overview 2024
A Foreword from our Chair
Our Approach to Sustainability
Materiality Assessment
Proposed Material Sustainability Topics
:
Mapping of Material Sustainability
Our Performance, Commitments and Long-term Goals
Governance
Environment
Social
31
HILLGROVE RESOURCES LIMITED
2024 SUSTAINABILITY REPORT
FINANCIAL
REPORT
SUSTAINABILITY
REPORT
ANNUAL
REPORT
Environment continued
Conservation and biodiversity
Approach
Biodiversity risks at Kanmantoo are mitigated through ongoing
processes in risk assessments, baselining, field mapping of
flora and fauna, mitigation and land disturbance permitting in
accordance with our Biodiversity Standard.
We are committed to minimising impacts to forests and our
environmental footprint through risk-based and responsible
biodiversity management, and to enhancing biodiversity via
reforestation and revegetation near our operations.
Through the Kanmantoo Grassy Woodland Revegetation
Program aims we are supporting the establishment of a regional
greenbelt connecting the mine’s rehabilitation activities with
regional vegetation initiatives.
The project seeks to reconstruct 161 hectares of Eucalyptus
odorata open grassy woodland and improve 7.6 hectares of
existing Eucalyptus camaldulensis (red gum) forest over the coming
years, providing linkages for ground-based fauna and birdlife
between disparate vegetation patches, and restoring important
ecological diversity to the region.
Within our operations over the last year, we have maintained native
revegetation on 122 hectares of land. We have also maintained
and grown our native seed propagation and multiplication
programs, which resulted in the generation of 545kg of native seed
over the past three years. Over the same period, approximately
1,000kg of seed has been provided to regional businesses to
promote further expansion of native revegetation.
Performance
Actions/Achievements
Commitments
Long-term goals
2025 Material Topic
Rehabilitation of disturbed mine site
areas using native vegetation and
creation of new native vegetation
areas has been completed or is in
progress over 122 hectares of land.
Continue to meet all
requirements under
Hillgrove’s PEPR as
mandated by the
Department for Energy
and Mining,
Government of
South Australia.
Assist community
in realising a regional
greenbelt through
resources and
land provision.
Provide enduring
protection and
conservation of
remnant vegetation
and rehabilitated
areas via legal
mechanisms.
No change to topic.
Established seed propagation
and multiplication areas on and
surrounding the site to produce
native seeds on a commercial
scale in order to meet and exceed
rehabilitation obligations - resulting
in the generation of 545kg of native
seed over the past three years.
Over the same period, ~1,000kg of
seed has been provided to regional
businesses to promote further
expansion of native revegetation.
Donated locally harvested native
flora seeds to Kanmantoo-
Callington Landcare group for their
“Greening the Bremer” project.
Develop and implement
a risk-based Biodiversity
Management Plan.
Links to relevant documents
Sustainability Policy
Sustainability Standards - Environment
Sustainability Overview 2024
A Foreword from our Chair
Our Approach to Sustainability
Materiality Assessment
Proposed Material Sustainability Topics
Mapping of Material Sustainability
Our Performance, Commitments and Long-term Goals
Governance
Environment
Social
:
FINANCIAL
REPORT
SUSTAINABILITY
REPORT
ANNUAL
REPORT
32
HILLGROVE RESOURCES LIMITED
2024 SUSTAINABILITY REPORT
Environment continued
K4C Master Plan – Mining and Beyond:
A Best Practice Community Approach from Kanmantoo – Callington
Kanmantoo Grassy Woodland Revegetation Program
CASE
STUDY
With this project and previous projects, there will be 700-800 hectares
of increasingly high-quality vegetation in the Kanmantoo/Callington area
that wasn’t there 20 to 25 years ago; providing habitat refuge for
Woodland Birds of the Mt Lofty Ranges.
Harry Seager – K4C Member and local resident
Background
The Kanmantoo Callington Community
Consultative Committee (K4C) and
Hillgrove Resources continue their
collaborative efforts to support
community development around the
Kanmantoo Copper Mine. Formed
in 2007, the committee has evolved
into a cornerstone for engagement
and consultation between Hillgrove
and the local communities
surrounding the mine.
The ‘K4C Master Plan – Mining and Beyond: A Best Practice
Community Approach from Kanmantoo-Callington’ was launched
in 2019 and demonstrates a leading approach for mining companies
to engage with the communities in which they operate through
the gathering and collation of community feedback over time.
The K4C Master Plan contains a vision that clearly identifies and
simultaneously builds upon the areas of environment, heritage, arts
and culture, and economic development. The K4C Master Plan has
been a key enabler for important community projects, such as the
war memorial in Kanmantoo and the development of the Callington
Recreation Community Centre, which is a not-for-profit sports,
recreation and community focused complex.
Kanmantoo Grassy Woodland Revegetation
Program Update
In 2022, stakeholders including K4C, Hillgrove Resources, the
Kanmantoo Callington Landcare Group, the Goolwa to Wellington
Local Action Planning Association (GWLAP), and local landowners
proposed a major revegetation project. This initiative aims to establish
a multi-kilometre greenbelt across over 168 hectares, connecting
existing mine rehabilitation works with regional vegetation efforts to
support fauna and biodiversity.
In 2023, the K4C and GWLAP secured a $1.3 million
grant from South Australia’s Native Vegetation Council,
supplemented by $695,000 in in-kind landowner
contributions, to commence the project.
In 2024 the following works were undertaken by Project
Manager, Second Nature Conservancy:
X
X 7.5 hectares of River red-gum on the Dawesley Creek
received over 130 hours of professional bush care works
X
X 15,000 seedlings, covering 60+ different flora species
were planted, guarded and watered in across four of the
five project sites this season including:
Z
Z More than 900 seedlings of the Environment
Protection and Biodiversity Conservation Act (EPBC)
listed Nationally vulnerable Olearia pannosa,
which easily equals the total remaining plants in the
Eastern hills
Z
Z 500 EPBC Act listed Nationally vulnerable
Acacia menzelii
Z
Z 200 rare Correa glabra var. Turnbulii
Z
Z 100 Regionally vulnerable Swainsona lessertifolia
(Coast Swainson pea)
X
X Rabbit proof fencing installed with 1,700 metres of
rabbit netting to protect 14.14 hectares
X
X Bird surveys conducted with rare birds observed and
recorded on the sites
X
X 22 Native vegetation surveys set up across the five
sites to capture vegetation health baselines using
BUSHRat methodology
X
X All landowners have signed up for heritage agreements
to protect the vegetation in perpetuity
Sustainability Overview 2024
A Foreword from our Chair
Our Approach to Sustainability
Materiality Assessment
Proposed Material Sustainability Topics
:
Mapping of Material Sustainability
Our Performance, Commitments and Long-term Goals
Governance
Environment
Social
33
HILLGROVE RESOURCES LIMITED
2024 SUSTAINABILITY REPORT
FINANCIAL
REPORT
SUSTAINABILITY
REPORT
ANNUAL
REPORT
Tailings Management
Management approach
Tailings are a by-product of mining that need management
throughout the life of a mine and beyond closure. The Kanmantoo
tailings facilities are planned, designed, constructed, and operated
in accordance with leading industry practices and guidelines.
In alignment with global best practices, our Tailings Storage
Standard integrates climate scenario considerations, stakeholder
engagement, our communities, water security, the safety of the
facility and closure/reclamation.
With oversight from the Audit and Risk Committee, tailings
storage facility risk assurance is achieved through rigorous design,
construction and operations management, routine inspections
and monitoring and independent review and audit processes.
Environment continued
Tailings assurance is undertaken monthly, with tailings compliance
reports submitted to the engineer of record for review. External
inspections are undertaken quarterly by the engineer of record
with a focus on impoundment stability, integrity, risk review,
planning coordination and water management.
Minimum performance requirements include a material risk
management, monitoring and surveillance, daily dam safety
inspections, and independent review at regular intervals.
Performance
Actions/Achievements
Commitments
Long-term goals
2025 Material Topic
The tailings facilities are planned,
designed, constructed, and operated
in accordance with leading industry
practices and guidelines.
Maintain industry best
practice for tailings
management.
Achieve closure criteria
set for the integrated
waste landform.
Closure, Rehabilitation
& Tailings Management.
In alignment with the global best
practices, our Tailings Storage
Standard integrates climate scenario
considerations, stakeholder
engagement, our communities, water
security, the safety of the facility and
closure/reclamation.
Continue auditing and QA/
QC programs for operation
and construction phases of
the Tailings Storage Facility.
Tailings risk assurance is achieved
through routine inspections and
monitoring and an independent audit
process.
Continue to monitor cover
performance for closure
criteria.
Links to relevant documents
Sustainability Policy
Sustainability Standards - Environment
Sustainability Overview 2024
A Foreword from our Chair
Our Approach to Sustainability
Materiality Assessment
Proposed Material Sustainability Topics
Mapping of Material Sustainability
Our Performance, Commitments and Long-term Goals
Governance
Environment
Social
:
FINANCIAL
REPORT
SUSTAINABILITY
REPORT
ANNUAL
REPORT
34
HILLGROVE RESOURCES LIMITED
2024 SUSTAINABILITY REPORT
Ensuring the health and safety of our employees, contractors and local communities
is the most critical part of our business. We are also committed to delivering a diverse
and inclusive workforce and increasing the employment opportunities we can offer to
as wide a pool of applicants as possible.
Within our business we understand the importance of maintaining and strengthening
our social licence to operate. This involves continual engagement with our local
communities to ensure their views are acknowledged and actioned.
Contributing to the local economy through employment, skills development, and
procurement from local suppliers are a key focus of how we create shared value for
our stakeholders.
Social
In our first year of underground production at Kanmantoo,
we achieved a 14% improvement in Total Recordable Injury
Frequency but there is more work to do to ensure everyone
returns home fit and well at the end of the day.
In 2025 our health, safety and wellbeing focus will be on continuing
to mature our systems and processes that keep everyone safe,
and providing an environment where people are empowered to
report and fix hazards before they cause anyone harm.
Nick Bartsch
General Manager Kanmantoo Copper Mine
Hillgrove Resources
Sustainability Overview 2024
A Foreword from our Chair
Our Approach to Sustainability
Materiality Assessment
Proposed Material Sustainability Topics
:
Mapping of Material Sustainability
Our Performance, Commitments and Long-term Goals
Governance
Environment
Social
35
HILLGROVE RESOURCES LIMITED
2024 SUSTAINABILITY REPORT
FINANCIAL
REPORT
SUSTAINABILITY
REPORT
ANNUAL
REPORT
Community consultation and community support
Social continued
Through the setup of the Kanmantoo Callington
Community Consultative Committee (K4C) in
2007, we have established an award-winning
stakeholder engagement model, which has led
to strong and enduring relationships with the
communities that neighbour our operations. A
notable achievement of this group has been the
development of the K4C Master Plan in 2019
which is a key enabler for important community
projects. We have pledged $50,000 in 2025
toward the update of the K4C Master Plan to
deliver a scoping stage plan.
Approach
Building and maintaining strong, supportive
relationships and partnerships with local
people in the areas we operate drives
value creation for our business and our
communities.
We seek to deliver long-term benefits to
local communities and other stakeholders
by engaging and collaborating,
understanding the social impacts of our
activities, mitigating negative effects and
achieving outcomes of mutual benefit.
Performance
Actions/Achievements
Commitments
Long-term goals
2025 Material Topic
Community Consultation
Award-winning community led K4C
Master Plan and community workshops
provided key data and insights used in the
development of the Rural City of Murray
Bridge Strategic Plan.
Continue to play an active
role in the K4C.
Continue to report to the
K4C and be accountable to
agreed actions.
Continue to be
recognised as an
industry leader in
community engagement.
Community Relations.
This topic will include
stakeholder engagement,
community support,
economic impacts,
grievance mechanism,
and community
health & safety.
Continued collaboration with local
community to utilise the presence of the
mine to improve amenities. Examples
include: the use of our water trucks to fill
our neighbours’ water tanks; creating fire
breaks for our neighbours; encouraging
local heavy vehicle traffic to access
Hillgrove’s private road, removing heavy
traffic from populated areas; and the
sharing of environmental and weather data
to assist local industrial businesses reduce
their emissions in the region, and assist in
local agri-business planning.
Build on the K4C and
develop further channels
for individual community
members and stakeholders
to raise comments and
concerns about the
Kanmantoo mine via
an independent and
confidential intermediary
in line with stakeholder
engagement best practice.
Establish mechanisms
which build local
community capability
that sees host
communities receiving
long-lasting sustainable
benefits well beyond the
completion of mining
activities.
Community Support
Delivery of annual financial support to a
range of local community assets, projects
and groups including the local cricket
and football clubs, the Callington Primary
School ($1,500) and the Callington Show
($1,500).
Hosting of mine site visits for university
students and K4C members (mine and
revegetation areas).
Maintain annual
financial support to local
communities.
Explore strategies
for supporting local
capacity building and
skills training such as
partnerships with local
education institutions.
Community Relations.
Links to relevant documents
Sustainability Policy
Sustainability Standards – Community and Social
Where possible we have taken up
opportunities to leverage the work we’re doing
to benefit the community. Recent examples
of this was the use of our water trucks to fill
our neighbours’ water tanks and creating
fire breaks for our neighbours. We continue
to look for opportunities in the way we work
that will have long-lasting benefits to the
community well beyond the completion of our
mining activities.
Sustainability Overview 2024
A Foreword from our Chair
Our Approach to Sustainability
Materiality Assessment
Proposed Material Sustainability Topics
Mapping of Material Sustainability
Our Performance, Commitments and Long-term Goals
Governance
Environment
Social
:
FINANCIAL
REPORT
SUSTAINABILITY
REPORT
ANNUAL
REPORT
36
HILLGROVE RESOURCES LIMITED
2024 SUSTAINABILITY REPORT
Sustainable Sourcing
Approach
Social continued
We proactively prioritise local and regional suppliers and
businesses within our supply chain in Australia. For this reason,
we deem our supply chain to currently be low risk in relation to
modern slavery and human rights.
However, in line with the implementation of our Modern Slavery
Policy, in 2025 we will initiate further screening and targeted
analysis of our suppliers to validate our assessed level of risk and
identify any potential specific areas for further investigation.
We will also continue to undertake modern slavery due diligence
for all new suppliers prior to onboarding.
In addition to this, as we work to build our Scope 3 emissions
inventory, we will also be engaging with our existing suppliers
to encourage their own internal tracking of their environmental
data and footprint. This will enable clearer information sharing
and emissions tracking business to business and improve
transparency across our value chain.
Performance
Actions/Achievements
Commitments
Long-term goals
2025 Material Topic
$48.9 million spent locally in
the region supporting 201 local
businesses.
55% of active vendors have
postcodes wthin 125km of
Kanmantoo.
Continue to monitor our
sourcing and procurement
approach and explore
the adoption of an ethical
procurement policy.
Explore the adoption of a
wider approach to sustainable
sourcing and engage with
suppliers and customers
up and downstream of our
operations to drive supply
chain sustainability.
No change to topic.
Initial engagement via open days
with local suppliers/businesses
to engage with the mine and
understand the needs of the
operation.
Develop a Supplier Code of
Conduct.
Links to relevant documents
Sustainability Policy
Sustainability Standards – Community and Social
Modern Slavery Policy
Sustainability Overview 2024
A Foreword from our Chair
Our Approach to Sustainability
Materiality Assessment
Proposed Material Sustainability Topics
:
Mapping of Material Sustainability
Our Performance, Commitments and Long-term Goals
Governance
Environment
Social
37
HILLGROVE RESOURCES LIMITED
2024 SUSTAINABILITY REPORT
FINANCIAL
REPORT
SUSTAINABILITY
REPORT
ANNUAL
REPORT
Social continued
Local employment
Approach
We understand the importance of supporting the local community with employment opportunities and how this in turn creates value
within our business. It is vital for a project team to consist of members of the local community who are individually invested in the
outcomes of the project.
In 2024, we maintained a predominantly residential workforce with 175 out of 183 employees being local (95%), reinforcing our
commitment to hiring local of which 98 were new hires in 2024.
We look to build local capacity in the area by providing training opportunities where possible. An example in 2024 was a store
traineeship offered to a local resident.
Performance
Actions/Achievements to date
Commitments
Long-term goals
2025 Material Topic
At 31 December 2024, 95% of
Kanmantoo employees live within
125km of Kanmantoo.
Continue to maintain local
hire policy where viable.
Provide traineeships and
apprenticeships for locals.
Explore strategies for
supporting local capacity
building and skills training
such as partnerships
with local education
institutions.
Labour Practices.
This topic has been expanded
to also cover employee
wellbeing, freedom of
association, and collective
bargaining.
95% of roles that do not require
a specific industry skill or
qualification were local employees.
Provision of a store traineeship to
a local resident.
Links to relevant documents
Sustainability Policy
Sustainability Standards – Community and Social
Sustainability Overview 2024
A Foreword from our Chair
Our Approach to Sustainability
Materiality Assessment
Proposed Material Sustainability Topics
Mapping of Material Sustainability
Our Performance, Commitments and Long-term Goals
Governance
Environment
Social
:
FINANCIAL
REPORT
SUSTAINABILITY
REPORT
ANNUAL
REPORT
38
HILLGROVE RESOURCES LIMITED
2024 SUSTAINABILITY REPORT
Diversity, Equity and Inclusion
Approach
We believe in and are committed to treating all people with respect,
fairness and providing equality of opportunity through a diverse,
equitable, and inclusive workplace congruent with our local
communities and cultures.
Diversity
We respect differences in gender, age, cultural background,
Indigenous heritage, disability, sexual orientation, religion, and other
unique characteristics. Our goal is to build a workforce that reflects
the broad diversity of Australian society and the communities in
which we operate.
Equity
We strive to provide fair and equitable opportunities for all
employees. We ensure that policies, practices, and workplace
culture support equal access to career progression, remuneration,
and professional development.
Inclusion
We foster an inclusive environment where all employees feel
valued, respected, and empowered to contribute their skills and
perspectives. We encourage open dialogue, mutual respect, and
proactive engagement with underrepresented groups.
At 31 December, 18.3% of our workforce identified as female.
This compares to the Australian mining industry average of 22%.
Social continued
To uphold our DEI commitments, we will implement the
following initiatives:
X
X Build a culture that is a differentiator in the market where
competition for talent is high
X
X Ensure non bias fair hiring practices are applied that attract and
retain diverse talent
X
X Provide ongoing education on cultural awareness, unconscious
bias, and inclusive leadership
X
X Actively support and create opportunities for Aboriginal
and Torres Strait Islander peoples through employment,
procurement, and community partnerships
X
X Offer flexible work options to accommodate diverse needs,
including parental leave, disability support, and remote work
X
X Conduct regular pay equity reviews and promote transparent
career pathways
X
X Ensure practices are in place to achieve increasing gender
equality at all levels of the organisation
X
X Enforce zero tolerance for discrimination, bullying, and
harassment in the workplace
See our updated Diversity, Equity and Inclusion Policy for
further information.
Performance
Actions/Achievements to date
Commitments
Long-term goals
2025 Material Topic
18.3% of the workforce at
Kanmantoo identified as
female (31 Dec 2024).
Work to maintain and increase
representation of women in the
workforce.
Diverse representation
across all levels of the
business including Board,
management, and the
workforce.
Diversity, Equity
and Inclusion.
Diversity, Equity and
Inclusion policy monitored.
Explore viable actions and strategy
to further diversify the workforce and
expand access to job opportunities.
Links to relevant documents
Sustainability Policy
Diversity, Equity and Inclusion Policy
Sustainability Standards – Community and Social
Sustainability Overview 2024
A Foreword from our Chair
Our Approach to Sustainability
Materiality Assessment
Proposed Material Sustainability Topics
:
Mapping of Material Sustainability
Our Performance, Commitments and Long-term Goals
Governance
Environment
Social
39
HILLGROVE RESOURCES LIMITED
2024 SUSTAINABILITY REPORT
FINANCIAL
REPORT
SUSTAINABILITY
REPORT
ANNUAL
REPORT
Social continued
Safety, Health and Wellbeing
Approach
We consider the safety, health and wellbeing of our people to be
critical to our success and our ultimate goal is to achieve zero
harm. Our vision is to be a leader in workplace health and safety
and to create a safe and enjoyable working environment for all our
employees, contractors, and visitors.
We accept individual work health and safety responsibility
throughout our operations. We specifically promote a risk aware
culture, provide effective leadership, and continuously improve our
Integrated Risk Management System.
Throughout 2024 we achieved a 14% reduction in Total
Recordable Injury Frequency though we recognise that more
work is needed to ensure the safety of our workforce. Mining
activities by their nature have the potential to impact the safety
of employees and the community, therefore all risks must be
identified, evaluated and managed to mitigate any actual and
potential adverse impacts.
Performance
Actions/Achievements to date
Commitments
Long-term goals
2025 Material Topics
Improved safety performance
with a 14% decrease in Total
Recordable Injuries Frequency at
31 Dec 2024 to 13.1
(Dec 31 2023: 15.3)
Work to maintain TRIF levels
below the industry average.
Empowerment of the
workforce to achieve
Zero-harm.
Workforce Health and Safety.
This topic will be expanded
to also cover how we are
managing emergency
preparedness and risk
assessments.
Commitment to assess and test
procedures and training upon
Underground commencement is
underway by external party.
Programs to support mental
health and promote a
positive morale.
Employee Assistance Program
provider established.
Maintain an integrated risk
management approach with
high-risk ranked items with
Board oversight.
Hosted International Emergency
Response Training.
Links to relevant documents
Sustainability Policy
Sustainability Standards – Safety
Sustainability Standards – Health
Sustainability Overview 2024
A Foreword from our Chair
Our Approach to Sustainability
Materiality Assessment
Proposed Material Sustainability Topics
Mapping of Material Sustainability
Our Performance, Commitments and Long-term Goals
Governance
Environment
Social
:
FINANCIAL
REPORT
SUSTAINABILITY
REPORT
ANNUAL
REPORT
40
HILLGROVE RESOURCES LIMITED
2024 SUSTAINABILITY REPORT
Ensuring Continuity in our Sustainability Approach
At present, the monitoring of action and delivery under this reporting process is overseen by the Audit and Risk Committee.
This Committee reports to the Board on progress linked to the Sustainability Report. This governance approach
underlines the fact that sustainability is seen as a business-critical issue for the Company.
In addition to our Sustainability Report, further information on our sustainability work
can be found at www.hillgroveresources.com.au/sustainability
As stated earlier in this report, from 2026 onwards we will be
expanding our reporting to reflect the operational status
of our Kanmantoo mine. Building on our updated
materiality assessment, key performance
metrics will be identified and disclosed
annually, including key data linked
to the new mandatory climate
reporting requirements for
Australian companies.
Continuity in our Sustainability Approach
Sustainability Overview 2024
A Foreword from our Chair
Our Approach to Sustainability
Materiality Assessment
Proposed Material Sustainability Topics
:
Mapping of Material Sustainability
Our Performance, Commitments and Long-term Goals
Governance
Environment
Social
41
HILLGROVE RESOURCES LIMITED
2024 FINANCIAL REPORT
Financial
Report
for the year ended 31 December
2024
42
HILLGROVE RESOURCES LIMITED
2024 FINANCIAL REPORT
Contents
FINANCIAL REPORT
Directors’ Report
43
Auditor’s Independence Declaration
58
Financial Statements
Consolidated Statement of Profit or Loss and
Other Comprehensive Income
59
Consolidated Statement of Financial Position
60
Consolidated Statement of Changes in Equity
61
Consolidated Statement of Cash Flows
62
Notes to the Consolidated Financial Statements
63
Consolidated Entity Disclosure Statement
85
Directors’ Declaration
86
Independent Auditor’s Report to the Members
87
Shareholder Information
92
Corporate Information
94
43
HILLGROVE RESOURCES LIMITED
2024 FINANCIAL REPORT
FINANCIAL
REPORT
SUSTAINABILITY
REPORT
ANNUAL
REPORT
The Directors present their report on the
consolidated entity (referred to hereafter
as “the Group”) consisting of Hillgrove
Resources Limited (Hillgrove or the Company)
and the entities it controlled during the 12
months ended 31 December 2024.
Principal Activities
Hillgrove is an Australian mining company
listed on the Australian Securities Exchange
(ASX: HGO) and focused on the development
of the Kanmantoo Underground Copper Mine
in South Australia and mineral exploration
in the south-east of South Australia. The
Kanmantoo Copper Mine is located 55
kilometres from Adelaide in South Australia.
Directors and Officers
The Directors and Officers of the Company
during the whole of the financial year and up
to the date of this report are:
Mr Derek Carter
Independent Non-Executive Chair
Chair Nomination Committee
BSc, MSc, FAusIMM
Derek has over 50 years’ experience
in exploration and mining geology and
management. He held senior positions
in Burmine Ltd and the Shell Group of
Companies where he was responsible for
discovering the Los Santos tungsten deposit
in Spain, before founding Minotaur Gold NL
in 1993. He resigned as Chair of Minotaur
Exploration Ltd in November 2016. Derek
was awarded AMEC’s Prospector of the
Year Award (jointly) in 2003 for the discovery
of the Prominent Hill copper-gold deposit,
the AusIMM President’s Award and is a
Centenary Medallist. Derek is currently the
Chair of Petratherm Limited (ASX: PTR).
Derek is a member of the Audit and Risk and
the Remuneration Committee.
Appointed 24 April 2020.
Mr Murray Boyte
Independent Non-Executive Director
Chair Audit and Risk and Treasury
Committees
BCA, CA, MAICD
Murray has over 40 years’ experience in
merchant banking and finance, undertaking
company reconstructions, mergers and
acquisitions in Australia, New Zealand, North
America and Hong Kong. Murray holds a
Bachelor of Commerce and Administration
from the Victoria University in Wellington
Directors’ Report
and is a member of the Australian Institute
of Company Directors, and Chartered
Accountants Australia & New Zealand.
In addition, Murray has held executive
positions and directorships in the transport,
horticulture, financial services, investment,
health services and property industries.
Murray is currently Chair of National Tyre
& Wheel Limited (ASX: NTD). He retired as
the Chair of Eureka Group Holdings Limited
(ASX: EGH) on 25 February 2025, and as a
Non Executive Director of Eumundi Group
(ASX: EBG) on 14 February 2025.
Murray is a member of the Nomination and
Remuneration Committees.
Appointed 10 May 2019.
Mr Roger Higgins
Independent Non-Executive Director
Chair Remuneration Committee
BE (Hons), MSc, PhD, FAusIMM, FIEAust
Roger has over 50 years of experience in the
resources industries, including being a former
Managing Director of Ok Tedi Mining Limited
in Papua New Guinea and Senior Vice
President Copper at Canadian metals and
mining company Teck Resources Limited. He
was also Vice President and Chief Operating
Officer with BHP Base Metals (Australia) and
held senior operations and project positions
with BHP in Chile. He is an Adjunct Professor
with the Sustainable Minerals Institute,
University of Queensland. Roger is currently a
Non Executive Director of Worley Limited and
Arafura Rare Earths. He was also recently
the Chair of both Minotaur and Demetallica
Limited and a Non Executive Director of
Newcrest Mining Limited.
Roger is a member of the Nomination, Audit
and Risk, and Treasury Committees.
Appointed 6 June 2023.
Mr Robert Fulker
Chief Executive Officer and Managing
Director
BEng (Mining), MSc (Mineral & Energy
Economics), FAusIMM,
Bob is a highly experienced Mining
Engineer with 39 years of experience in
the minerals industry. He has held Senior
Executive positions at Evolution Mining and
OZ Minerals, where he was responsible
for leading the safe and efficient delivery
of significant operations. Bob’s extensive
experience spans Australia, Africa, and
Canada, where he has consistently achieved
outstanding results in various mineral sectors.
His strategic leadership in corporate roles
and operational excellence through innovative
solutions have significantly enhanced safety,
operations, and profitability. Throughout his
career, Bob has worked with industry leaders
such as Rio Tinto, Normandy Mining, BHP,
OZ Minerals, and Evolution Mining.
Appointed 1 July 2024.
Mr Lachlan Wallace
Chief Executive Officer and Managing
Director
BEng (Mining Hons), MSc (Mineral & Energy
Economics), MBA, MAusIMM, GAICD
Since joining Hillgrove in 2012, Lachlan held
various operational roles at the Kanmantoo
Copper Mine including General Manager
before becoming the Chief Executive Officer
and Managing Director in 2019. Previously,
Lachlan was responsible for Stemcor’s global
mining assets, developing their iron ore
and manganese portfolio in India and nickel
project in Indonesia at a time when Stemcor’s
annual turnover exceeded £6Bn. In addition,
Lachlan chaired a JV between Stemcor and
an Indonesian partner to facilitate thermal
coal trade flows ex-Indonesia. Lachlan has
held technical, managerial and consulting
roles in Africa and Australia, including Anglo
Gold Ashanti’s Siguiri gold project in Guinea,
the Lumwana copper mine in Zambia, and
the Savage River iron ore mine in Tasmania.
Appointed 24 May 2019, resigned on
1 July 2024.
Mr Joe Sutanto
Chief Financial Officer and Company
Secretary
BCom, MBA, CPA, MAICD
Joe joined Hillgrove in 2011 and has held
a number of roles within the finance team,
which spanned commercial and planning
to financial control before becoming the
Company Secretary and Chief Financial
Officer in 2023. Prior to Hillgrove, Joe
held a number of roles which included
as a corporate finance executive at PwC
Corporate Finance, commodities trader at
Glencore, and as an auditor at KPMG. A CPA
qualified accountant, Joe completed his MBA
at HKUST and London Business School.
Appointed 16 June 2023.
FINANCIAL
REPORT
SUSTAINABILITY
REPORT
ANNUAL
REPORT
44
HILLGROVE RESOURCES LIMITED
2024 FINANCIAL REPORT
Directors and Officers continued
Directors’ Meetings
The attendance of Directors at Board and Committee meetings during the financial year were as follows:
Meetings Held
Board
Remuneration
Committee
Audit & Risk
Committee
Nomination
Committee
Treasury Committee
Director
A
B
A
B
A
B
A
B
A
B
Mr D Carter
16
16
3
3
6
6
-
-
1
1
Mr M Boyte
16
15
3
3
6
6
-
-
1
1
Mr R Higgins
16
16
3
3
6
6
-
-
1
1
Mr R Fulker
9
9
1
1
3
3
-
-
1
1
Mr L Wallace
7
7
2
2
3
3
-
-
-
-
A – Number of meetings held during the time the Director was a member of the Board and/or Committee.
B – Number of meetings attended during the time the Director was a member of the Board and/or Committee.
Financial Review
Consolidated Profit and Loss Summary
FY24 ($M)
FY23 ($M)
Revenue from ordinary activities
112.4
-
Profit / (Loss) from ordinary activities after tax attributable to the owners of
Hillgrove Resources Limited
(24.0)
(16.3)
Profit / (Loss) for the year attributable to the owners of Hillgrove Resources Limited
(24.0)
(16.3)
For the year ended 31 December 2024, the net loss after tax was $24.0 million compared to a net loss after tax of $16.3 million for the year
ended 31 December 2023.
Consolidated Statement of Profit or Loss Overview
Dec 2024 ($M)
Dec 2023 ($M)
Change ($M)
Copper revenue
111.4
-
111.4
Gold revenue
5.4
-
5.4
Silver revenue
2.9
-
2.9
Less: treatment and refining costs
(7.3)
-
(7.3)
NET REVENUE FROM SALE OF CONCENTRATE
112.4
-
112.4
Mining costs
(53.4)
(6.0)
(47.4)
Processing plant costs
(20.5)
(1.3)
(19.2)
Transport and shipping costs
(4.0)
-
(4.0)
Care and maintenance costs
-
(2.1)
2.1
Other direct costs
(5.0)
(2.7)
(2.3)
Movement in inventory stockpile valuation (cash costs)
2.5
1.0
1.5
Government royalties
(5.4)
-
(5.4)
Corporate costs
(4.7)
(3.8)
(0.9)
Exploration and project costs written off
(0.4)
(0.1)
(0.3)
TOTAL COSTS
(90.9)
(15.0)
(76.0)
Net realised gains/(losses)
0.2
0.1
0.1
Other income
0.8
0.8
-
EBITDA
22.5
(14.1)
36.6
Depreciation and amortisation
(31.7)
(0.7)
(31.0)
Movement in inventory stockpile valuation (non-cash costs)
(0.2)
-
(0.2)
EBIT
(9.4)
(14.8)
5.4
Net interest and financing charges
(14.4)
(0.8)
(13.6)
Income tax expense
(0.2)
(0.7)
0.5
NET LOSS AFTER TAX
(24.0)
(16.3)
(7.7)
Directors’ Report continued
45
HILLGROVE RESOURCES LIMITED
2024 FINANCIAL REPORT
FINANCIAL
REPORT
SUSTAINABILITY
REPORT
ANNUAL
REPORT
Financial Review continued
Consolidated Cash Flow Overview
Dec 2024 ($M)
Dec 2023 ($M)
Change ($M)
Net cash flows from operating activities
21.0
(9.5)
30.5
Net cash used in investing activities
(32.0)
(22.5)
(9.5)
Net cash flows from financing activities
4.1
36.9
(32.8)
Net increase/(decrease) in cash held
(6.9)
4.9
(11.8)
Cash and cash equivalents at the end of the year
3.3
10.2
(6.9)
Operating Activities Cash Flow
Operating cash inflows were $21.0 million, driven by the commencement of production in February 2024 and the first copper sale. The
commencement of production resulted in cash receipts of $106.8 million for the year, compared to none in the prior period. Cash payments
rose by $76.2 million to $85.8 million, reflecting a significant workforce expansion and increased supplier engagement to support underground
development and processing operations.
Investing Activities Cash Flow
Net cash outflow from investing activities totalled $32.0 million, an increase from $22.5 million in the previous year. The investment included
$2.3 million expended on exploration licences and $30.0 million invested in property, plant, and equipment. The outflow was partially offset by
$0.2 million in proceeds from equipment disposals.
Financing Activities Cash Flow
The company recorded a net cash inflow of $4.1 million from financing activities during the year. This was primarily driven by $9.7 million raised
from new share issuances (net of transaction costs) and $0.1 million in interest income. These cash inflows were partially offset by $5.7 million
in lease payments made during the year.
Consolidated Statement of Financial Position Overview
31 Dec 2024 ($M)
31 Dec 2023 ($M)
Change ($M)
Cash and cash equivalents
3.3
10.2
(6.9)
Trade and other receivables
3.7
1.5
2.2
Inventories
7.3
3.2
4.1
Property, plant and equipment
76.9
69.1
7.8
Right-of-use assets
9.2
11.8
(2.6)
Exploration and evaluation expenditure
7.0
5.3
1.7
Total assets
107.4
101.1
6.3
Trade and other payables
26.1
13.7
12.4
Provisions
9.4
9.6
(0.2)
Lease liabilities
8.7
11.8
(3.1)
Employee benefits payable
3.4
1.6
1.8
Deferred income
2.0
2.0
-
Other financial liabilities
16.2
7.5
8.7
Total Liabilities
65.8
46.2
19.6
NET ASSETS / EQUITY
41.6
54.9
(13.3)
Total assets increased by $6.3 million during the year, primarily driven by a $7.8 million increase in property, plant, and equipment, reflecting
asset purchases and the capitalisation of mining costs. Exploration and evaluation assets also grew by $1.7 million, primarily related to
exploration activities outside the mining lease but within licensed exploration areas.
Inventories rose by $4.1 million, largely due to the ramp up of operations and a change in provision methodology following the commencement
of production. Other asset movements included a $6.9 million decrease in cash and a $2.2 million increase in trade and other receivables. The
receivables increase was primarily due to revenue-related receivables of $1.5 million, compared to none in the prior year.
Total liabilities increased by $19.6 million, reaching $65.8 million. This increase was primarily driven by an $8.7 million net movement in the
royalty financial liability, largely due to a revaluation based on discounted cash flows from future revenue projections as at 31 December 2024.
Additionally, trade payables rose by $12.4 million due to the operational expansion following the commencement of production. This expansion
also led to a $1.8 million increase in employee benefits payable, reflecting the growth in the workforce.
Directors’ Report continued
FINANCIAL
REPORT
SUSTAINABILITY
REPORT
ANNUAL
REPORT
46
HILLGROVE RESOURCES LIMITED
2024 FINANCIAL REPORT
Directors’ Report continued
Financial Review continued
These increases were partially offset by a $3.1 million reduction in lease liabilities and a $2.6 million reduction in right-of-use assets, both
resulting from early lease terminations and replacements via service contracts.
The Directors have reviewed the ability of the consolidated entity to continue as a going concern for a period of 12 months from the signing
of the financial statements and with the forecast cash flows and access to funding, concluded there are reasonable grounds to believe the
consolidated entity will continue as a going concern.
The continued success of the Group is dependent on achieving the planned levels of production at the Kanmantoo mine. Therefore, included
within the annual financial report for the year ended 31 December 2024 is an independent auditor’s report that includes a statement on
“Material uncertainty relating to going concern”. For further information, refer to Note 1 in the annual financial report, together with the auditor’s
report.
Operating Review
In February 2024, the Company announced the commencement of copper production from the Underground mine, following the successful
commissioning of the processing plant, which reached commercial production by the end of the June 2024 quarter.
As highlighted in the table below, the Company continued to ramp up production throughout 2024, processing 955k tonnes of ore at an
average grade of 1.02% to produce 8,971mt of copper in concentrate. The continued ramp up led to records achieved over several key
physical metrics in the December 2024 quarter – including development metres advanced, tonnes of ore mined, tonnes of ore processed, and
copper recoveries.
Kanmantoo Production Metrics
Units
Dec 2024 Quarter
Sep 2024 Quarter
Jun 2024 Quarter
Mar 2024 Quarter
Mining Physicals
Total Development
m
1,621
1,401
1,238
1,405
Inventory Mined
kt
311
280
211
122
Grade Mined
%
0.85
1.20
1.24
0.82
Processing Physicals
Tonnes Processed
kt
329
266
256
104
Grade Processed
%
0.86
1.18
1.10
0.93
Recoveries
%
93.5
93.3
91.4
82.7
Production
Copper Produced
t
2,637
2,923
2,584
827
Gold Produced
oz
490
626
535
162
Silver Produced
oz
21,854
26,372
23,377
5,810
Outlook and Future Developments
The focus of the Company will be the safe and sustainable production of copper concentrates from Kanmantoo. In addition, the Company will
continue to explore and evaluate its near mine prospects, enabling it to expand its production and mine life.
Material Business Risks
The Company prepares its business plan based on estimates of production and financial performance, using a range of assumptions and
forecasts. However, these assumptions and forecasts, due to the nature of the business, are subject to inherent uncertainties, and variations
from them may result in actual performance differing from expected outcomes. The Company recognises that business risks can evolve over
time and therefore continuously reviews key risks and uncertainties that have the potential to impact its operations. These uncertainties arise
from various factors, including the inherent characteristics of the mining industry and broader economic conditions.
The Group actively manages material risks, along with other operational risks, through a range of structured and formal processes, including
oversight by Board Committees, risk assessments conducted by leadership teams, and formal risk reporting mechanisms.
The key business risks that may impact the Group’s operational and financial performance as of 31 December 2024 are outlined below.
Fluctuations in Metal Prices and Exchange Rate Risk
The Group’s revenues are exposed to fluctuations in copper, gold, and silver prices. The volatility of metal prices creates revenue uncertainty
and necessitates proactive management to ensure that operating cash margins are maintained in the event of a decline in the Australian dollar
price of these commodities. Given the interrelationship between currency and commodity markets, exchange rate movements may either
mitigate or amplify the impact of metal price fluctuations and associated commodity cost inputs. A sustained decline in metal prices could also
impact operational decisions, including the need to reassess the economic feasibility of particular exploration activities or the Kanmantoo mine.
47
HILLGROVE RESOURCES LIMITED
2024 FINANCIAL REPORT
FINANCIAL
REPORT
SUSTAINABILITY
REPORT
ANNUAL
REPORT
Material Business Risks continued
Mineral Resources and Ore Reserves
The estimation of Mineral Resources and Ore Reserves requires the
application of geological, technical, and economic assumptions.
This process involves determining the size, shape, and depth of
mineralised bodies through the analysis of geological data, such
as drilling samples. Given the complexity of geological formations,
these estimations often require intricate geological interpretations and
calculations.
Economic assumptions underpinning Mineral Resource and Ore
Reserve estimates may vary from year to year. Additionally, as new
geological data is obtained through ongoing exploration and mining
activities, these estimates may be subject to change. Variations in
reported Mineral Resources and Ore Reserves can have either a
positive or negative impact on the consolidated entity’s financial
performance.
There is no certainty that current or future exploration programs will
result in the discovery of additional mineral resources. There is also a
risk that Ore Reserves may be depleted without sufficient replacement
through new discoveries or acquisitions. Should the Mineral Resource
base decline without adequate replenishment, the Group may be
unable to sustain production levels beyond the current mine life,
based on existing production rates.
Mining Risks and Insurance Risks
The mining industry is inherently subject to a range of significant
risks and hazards. These include environmental incidents, industrial
accidents, unforeseen geological conditions, shortages of materials
and equipment, pit wall failures, rock bursts, seismic events, cave-
ins, and adverse weather conditions such as flooding and bushfires
many of which are beyond the Group’s control. Such events have
the potential to cause substantial costs or operational delays, which
could materially affect the Group’s financial performance, liquidity, and
overall results of operations.
To mitigate these risks, the Group maintains insurance coverage for
the most common mining-related hazards. The level of insurance
coverage is assessed based on the nature of each identified risk,
with consideration given to factors such as property and liability
exposure. However, it is important to note that insurance may not
always provide full coverage for losses associated with these or other
unforeseen risks and hazards.
Production and Cost Estimates
The Group prepares estimates of future production, cash costs, and
capital costs for its operations. However, there is no assurance that
these estimates will be achieved. Failure to meet production or cost
targets, or material increases in costs, could negatively impact the
Group’s future cash flows, profitability, operational results, and overall
financial condition.
Actual production and costs may differ from estimates due to various
factors, including:
X
X Variations between estimated and actual ore grades, tonnage,
dilution, and metallurgical characteristics;
X
X Short-term operational factors related to Ore Reserves, such as
the need for sequential development of ore bodies and processing
of different ore grades;
X
X Revisions to mine plans;
Directors’ Report continued
X
X Mining-related risks and hazards;
X
X Natural phenomena such as adverse weather conditions, water
availability, and flooding; and
X
X Unexpected labour shortages.
Production costs may also be influenced by factors such as labour
costs, commodity price fluctuations, general inflationary pressures,
and exchange rate volatility.
Environmental Regulatory Risk
The Group’s operations are subject to environmental regulations
at both the Commonwealth and State levels, covering areas such
as air and water quality, waste management, emissions control,
environmental impact assessments, mine rehabilitation, and access
to ground and surface water. Some operations must also comply
with environmental protection legislation and development consents
specific to their jurisdiction.
The Directors are not aware of any material breaches of the
Company’s licences, and all mining and exploration activities are
conducted in compliance with relevant environmental regulations.
However, the Company’s projects remain subject to evolving
environmental laws and regulations, which may create the risk of
regulatory liability.
The Company is committed to complying with all applicable
environmental laws and regulations and conducts its activities in a
responsible manner to minimise environmental impact.
Climate Change
The Group recognises that climate change is occurring and
acknowledges its potential to impact communities, business
operations, financial performance, cash flows, and investment
decisions. Key climate-related risks include:
X
X Physical risks: Energy and emissions management, water security,
and the effects of extreme weather events or health-related
incidents.
X
X Transition risks: Legislative and regulatory changes, reputational
considerations, technological advancements, market shifts, and
increased shareholder activism.
The Group is committed to proactively managing these risks and
integrating climate considerations into its business strategy and
decision-making processes.
Financial Solvency Risks
The Group seeks to maintain an adequate cash balance to ensure
sufficient liquidity for ongoing operations. Given the substantial
working capital requirements associated with commodity sales
and price volatility, maintaining liquidity is a critical factor in financial
stability, which includes access to a standby debt facility.
Operational and financial risk factors impact liquidity, and the Board
and management continuously monitor the Group’s solvency position.
The Company aims to maintain an appropriate level of working capital
to mitigate solvency risks and ensure business continuity.
Operational Risk
The Company produces copper, silver, and gold under commercial
contracts, with ongoing production essential for funding planned
expenditures. Operational success depends on efficient resource
management, production continuity, and effective risk mitigation.
FINANCIAL
REPORT
SUSTAINABILITY
REPORT
ANNUAL
REPORT
48
HILLGROVE RESOURCES LIMITED
2024 FINANCIAL REPORT
Directors’ Report continued
Material Business Risks continued
Potential risks include:
X
X Operational disruptions: Machinery failures, power outages, and
supply chain issues.
X
X Environmental hazards: Spills, emissions, noise, and extreme weather.
X
X Industrial incidents: Workplace accidents and unforeseen cost
escalations.
X
X Regulatory and market risks: Government policy changes, inflation,
and commodity price fluctuations.
Sustained production also requires resource discovery, efficient
exploration, and securing necessary permits and approvals. The
Group actively manages operational risks through structured
governance and contingency planning.
Capital Raisings
In February 2024, the Company announced an institutional placement
which raised $10.0 million (before costs) to fund mine extension
drilling. The placing was completed at 6.0 cents per share and
171,644,245 new ordinary shares were issued, all proceeds were
received in 2024.
Dividends
There were no dividends paid during the current period.
Significant Changes in the State of
Affairs
Other than those matters listed in this report there have been no
significant changes in the affairs of the Group during the period.
Events Subsequent to Balance Date
No material events have occurred post the reporting period until the
date of signing.
Likely Developments and Expected
Results of Operations
Likely developments in the operations of the group in the short
to medium term will largely be focussed on production from the
Kanmantoo Underground and increasing the mine life.
Environmental Regulation
Closure of an operation brings with it potential significant financial,
environment, and social impacts. Recognising this, a closure
management plan for Kanmantoo has been prepared, which
includes long term monitoring to verify that controls are effective, and
standards are maintained.
The consolidated entity has a policy of engaging appropriately
experienced contractors and consultants to advise on and ensure
compliance with environmental regulations in respect of its exploration
and development activities. There have been no reports of material
breaches of environmental regulations in the financial period at the
date of this report, however elevated metals in groundwater detected
in a borehole on the mining lease was reported to the Regulator in
October 2021. Whilst this is currently immaterial, and there were
no notable changes to the levels during 2024, Hillgrove Resources
continues to monitor the borehole to ensure that it does not lead to a
material breach of any environmental regulations.
Indemnification and Insurance of
Officers
Officers’ Indemnity
Article 102 of the Company’s Constitution provides that “To the extent
permitted by law and subject to the restrictions in section 199A of the
Corporations Act, the Company indemnifies every person who is or
has been an officer of the Company against any liability (other than
for legal costs) incurred by that person as an officer of the Company
(including liabilities incurred by the officer as an officer of a subsidiary
of the Company where the Company requested the officer to accept
that appointment).”
Indemnity of Auditors
Hillgrove Resources Limited has agreed to indemnify their auditors,
PricewaterhouseCoopers, to the extent permitted by law, against
any claim by a third party arising from Hillgrove Resources Limited’s
breach of their agreement. The indemnity stipulates that Hillgrove
Resources Limited will meet the full amount of any such liabilities
including a reasonable amount of legal costs.
Directors’ and Officers’ Insurance
During the financial year, the Company paid a premium in respect of a
contract for directors’ and officers’ liability insurance. It is a condition
of this Policy that each Insured and/or any persons at their direction
or on their behalf shall not disclose the existence of any Coverage
Section, its Limits of Liability, the nature of the liability indemnified, or
the premium payable.
Proceedings on Behalf of the Company
No person has applied to the Court under section 237 of the
Corporations Act 2001 for leave to bring proceedings on behalf of the
Company, or to intervene in any proceedings to which the Company
is a party, for the purpose of taking responsibility on behalf of the
Company for all or part of those proceedings. No proceedings have
been brought or intervened in on behalf of the Company with leave of
the Court under section 237 of the Corporations Act 2001.
Non-Audit Services
The Company may decide to employ the auditor on assignments
additional to their statutory audit duties where the auditor’s expertise
and experience with the Company and/or the consolidated entity
are important. Details of the amounts paid or payable to the auditor
(PricewaterhouseCoopers) for audit and non-audit services provided
during the period are set out in Note 7(e).
The Audit and Risk Committee has considered the position and is
satisfied that the provision of the non-audit services is compatible with
the general standard of independence for auditors imposed by the
Corporations Act 2001. The Directors are satisfied that the provision
of non-audit services by the auditor did not compromise the auditor
independence requirements of the Corporations Act 2001.
None of the services provided undermine the general principles
relating to auditor independence as set out in Professional Statement
F1, including reviewing or auditing the auditor’s own work, acting
in a management or decision-making capacity for the Company,
acting as advocate for the Company or jointly sharing economic risk
and rewards. A copy of the Auditors’ Independence Declaration as
required under section 307C of the Corporations Act 2001 is set out
on page 58.
49
HILLGROVE RESOURCES LIMITED
2024 FINANCIAL REPORT
FINANCIAL
REPORT
SUSTAINABILITY
REPORT
ANNUAL
REPORT
Corporate Governance
The Board is committed to following
ASX Corporate Governance Council
Corporate Governance Principles and
Recommendations. The Company adopts
these best practice recommendations
in its policies and procedures where it is
appropriate to do so, given the size and type
of Company and its operations.
The Board has a process of reviewing
all policies and corporate governance
processes. Charters are reviewed and
updated periodically. These charters provide
the framework and roles of respective
committees for the appointment of Non-
Executive Directors to undertake specific
responsibilities on behalf of the Board.
Details of the corporate governance policies
adopted by the Company and referred
to in this statement are available on the
Company’s website at
www.hillgroveresources.com.au
Remuneration Report (Audited)
The Directors of Hillgrove Resources Limited and its Consolidated Entities present the
Remuneration Report for the Company for the year ended 31 December 2024, which forms
part of the Director’s Report and has been audited in accordance with section 308 (3C) of the
Corporations Act 2001.
1.0 Key Management Personnel
Key management personnel comprise the Non-Executive Directors, Executive Director, and
CFO (KMP). Details of the KMP are set out in the table below.
Directors
Title (At Year End)
Change in 2024 Financial Year
Mr L Wallace
CEO and Managing Director
Member Treasury Committee
Resigned 1 July 2024
Mr R Fulker
CEO and Managing Director
Member Treasury Committee
Appointed 1 July 2024
Mr D Carter
Chair
Chair Nomination Committee
Member Remuneration Committee
Member Audit and Risk Committee
Full Year
Mr M Boyte
Director
Chair Audit and Risk Committee
Chair Treasury Committee
Member Nomination Committee
Member Remuneration Committee
Full Year
Mr R Higgins
Director
Chair Remuneration Committee
Member Nomination Committee
Member Audit and Risk Committee
Member Treasury Committee
Full Year
Other Key Management
Personnel
Title (At Year End)
Change in 2024 Financial Year
Mr J Sutanto
Chief Financial Officer and
Company Secretary
Member Treasury Committee
Full Year
2.0 Role of the Board and the Remuneration Committee
The Board is responsible for the Company’s remuneration strategy and policy. Consistent with
this responsibility, the Board has established a Remuneration Committee which is chaired by
an Independent Non-Executive Director.
The role of the Remuneration Committee is set out in its Charter and in summary is to:
X
X Review and approve the Company’s remuneration strategy and policy;
X
X Consider and propose to the Board the remuneration of the CEO and consider and
approve the remuneration of all designated senior executives;
X
X Review and approve Hillgrove Resources’ short-term incentive (STI) and long-term incentive
(LTI) schemes, including amounts, terms and offer processes and procedures;
X
X Determine and approve equity awards in accordance with policy and shareholder
approvals, including testing of vesting and termination provisions; and
X
X Review and make recommendations to the Board regarding remuneration of non-executive
directors.
Further information on the Remuneration Committee’s role, responsibilities and membership is
contained on the Company’s website www.hillgroveresources.com.au
Directors’ Report continued
FINANCIAL
REPORT
SUSTAINABILITY
REPORT
ANNUAL
REPORT
50
HILLGROVE RESOURCES LIMITED
2024 FINANCIAL REPORT
Directors’ Report continued
2.1 Remuneration and
Benefits Policy
The Company’s approach to remuneration
is outlined in the Remuneration and Benefits
Policy and is based on providing competitive
rewards that motivate talented employees to
deliver superior results.
The Remuneration and Benefits policy
aims to:
X
X Align employee remuneration to the
principles and measurement of Total
Shareholder Return (TSR);
X
X Present progressive incentive structures to
encourage outstanding performance, and
hence improved TSR; and
X
X Mitigate the business risks associated
with poor performance, market
movements and employee turnover.
The Remuneration Committee Charter and
Remuneration and Benefits Policy can be
viewed in the Company’s website
www.hillgroveresources.com.au
2.2 Use of Remuneration
Consultants
The Remuneration Committee is briefed by
management, however, makes all decisions
free of influence of management.
Further to the management briefings, to
assist in its decision making, the Committee
may, from time to time, seek independent
advice from remuneration consultants, and
in so doing will directly engage with the
consultant without management involvement.
In the year ending 31 December 2024,
the Remuneration Committee engaged
advisors Guerdon Associates. Their analysis
relating to the remuneration for the Chief
Executive Officer & Managing Director
(CEO & MD) and the Chief Financial Officer
(CFO) was considered by the Remuneration
Committee and the Board in forming their
views on remuneration matters. The work
completed did not constitute a remuneration
recommendation in accordance with the
Corporations Act 2001.
3.0 Non-Executive Director Remuneration
Elements
Details
Aggregate
Board and
Committee
Fees
The total amount of fees paid to non-executive directors in the year ended
31 December 2024 is within the aggregate amount approved by
shareholders of $450,000 a year.
Board/
Committee
Fees Per
Annum
Board Chair Fee
$120,565
Board NED Base Fee
$75,360
Nomination Committee Chair Fee
$5,000
Remuneration Committee Chair Fee
$5,000
Audit and Risk Committee Chair Fee
$5,000
Post-Employment Benefits
Superannuation
Superannuation contributions were made at a rate of 11.0% until 30 June
2024 and have been made at a rate of 11.5% of base fee from 1 July 2024
(but only up to the Government’s prescribed maximum contributions limit)
which satisfies the Company’s statutory superannuation contributions.
Contributions are included in the total fee.
Other Benefits
Equity
Instruments
Non-Executive Directors may receive performance related remuneration
or options and performance rights. In May 2021, there were two LTI Plans
granted to Mr Derek Carter and Mr Murray Boyte. Subsequently, Mr Roger
Higgins was granted performance rights in June 2024. At balance date, the
following remains outstanding:
X
X Tranche 1 = 12,000,000 options
X
X Tranche 2 = 9,000,000 options
Further information on Tranche 1 and Tranche 2 is as follows:
T1 (2021)
T2 (2021)
T1 (2024)
T2 (2024)
Exercise Price
$0.10/share
$0.15/share
$0.10/share
$0.15/share
Grant Date
14 May 2021 14 May 2021
3 June 2024
3 June 2024
First Exercise Date
14 May 2023 14 May 2024
3 June 2024
3 June 2024
Last Exercise Date
14 May 2025 14 May 2026 14 May 2025 14 May 2026
Other Fees/
Benefits
No payments were made to Non-Executive Directors during the 2024
financial year for extra services or special exertions. Directors are entitled to
be reimbursed for approved Company related expenditure e.g. flights and
expenses to attend Board meetings.
4.0 Executive Remuneration
4.1 Executive KMP Remuneration Framework
Hillgrove Resources’ executive remuneration strategy is designed to attract, retain and
motivate a highly qualified and experienced group of Executives.
4.2 Total Fixed Remuneration
Total Fixed Remuneration (TFR) includes all remuneration and benefits paid to an
Executive KMP calculated on a Total Employment Cost (TEC) basis and includes base
salary and superannuation benefits paid in line with the prevailing statutory Superannuation
Guarantee legislation.
Remuneration Report (Audited) continued
51
HILLGROVE RESOURCES LIMITED
2024 FINANCIAL REPORT
FINANCIAL
REPORT
SUSTAINABILITY
REPORT
ANNUAL
REPORT
Jan - 2024
Apr - 2024
Jul - 2024
Oct - 2024
Jan - 2025
Apr - 2025
Jul - 2025
Oct - 2025
Jan - 2026
Apr - 2026
Jul - 2026
Oct - 2026
Jan - 2027
Mar - 2027
Jun - 2027
Sep - 2027
Dec - 2027
Mar - 2028
4.0 Executive Remuneration continued
4.3 Remuneration Composition Mix and Timing of Receipt
The Company endeavours to provide an appropriate and competitive mix of remuneration components balanced between fixed and ‘at risk’.
The remuneration composition mix of the Company’s Executive KMP can be illustrated as follows:
Remuneration Mix CY 2024
Position
TFR (Cash)
STI (Cash)
LTI (Equity)
CEO & MD
100%
Up to 75% of TFR
Up to 50% of TFR
CFO
100%
Up to 50% of TFR
Up to 50% of TFR
Note KMPs are classified as Executives for the purposes of remuneration disclosures under the Corporations Act.
The three complementary components of Executive KMP remuneration are ‘earned’ over multiple time ranges.
This is illustrated in the following chart.
Directors’ Report continued
Remuneration Report (Audited) continued
4.4 Variable ‘At Risk’ Remuneration
As set out in Section 4.3, variable remuneration forms a portion of the CEO & MD’s and CFO’s remuneration. Apart from being market
competitive, the purpose of variable remuneration is to direct Executive’s behaviours towards maximising Hillgrove Resources’ value and return
value to shareholders, by targeting short, medium and long- term performance measures. The key aspects are summarised below.
4.4.1 Short Term Incentives (STI)
STI Programme
Purpose
The STI arrangements are designed to reward executives for the achievement against annual performance targets
set by the Board at the beginning of the performance period. The STI programme is reviewed annually by the
Remuneration Committee and approved by the Board.
Performance Target Areas
The key performance objectives of the Company vary by level but are currently directed to achieving ambitious targets.
Rewarding Performance
The Board adopted a Balanced Scorecard approach to determine 2024 STI performance. The Balanced Scorecard
measures performance against the Company’s internal goals, which includes ESG, resource and reserves, and
mine plan metrics.
A threshold and target are set for each STI outcome. Specific targets are not provided in detail due to
commercial sensitivity.
Validation of performance against the Balanced Scorecard measures set for the KMPs involves a review
calculation and recommendation by the CEO & MD, reviewed and approved by the Remuneration Committee
with final Board sign-off.
4.4.2 Performance Based Remuneration Granted and Forfeited During the Year
The following table shows how much of the STI cash bonus was awarded and how much was forfeited for each KMP.
2024 Performance
KMP
Opportunity ($)
Awarded (%)
Forfeited (%)
Mr R Fulker
240,000
0%
100%
Mr J Sutanto
196,519
0%
100%
TFR
STI
LTI 2024 OPRP
Exercise date
FINANCIAL
REPORT
SUSTAINABILITY
REPORT
ANNUAL
REPORT
52
HILLGROVE RESOURCES LIMITED
2024 FINANCIAL REPORT
Directors’ Report continued
Remuneration Report (Audited) continued
4.0 Executive Remuneration continued
4.4.3 Long Term Incentives (LTI) Plans
The LTI provides an annual opportunity for executives and key staff to receive an equity award that is intended to align a significant portion of an
executive’s overall remuneration to shareholder value over the longer term. All LTI awards remain at risk and subject to clawback (forfeiture or
lapse) until vesting and must meet or exceed share price hurdles over the vesting period, along with other performance criteria.
As at the end of the 2024 financial year, there were three LTI Plans outstanding to Executive KMP:
X
X 2022 Option and Performance Rights Plan (2022 OPRP) = 3,000,000 performance rights;
X
X 2023 Option and Performance Rights Plan (2023 OPRP) = 3,000,000 performance rights; and
X
X 2024 Option and Performance Rights Plan (2024 OPRP) = 5,250,000 performance rights.
2022, 2023 and 2024 OPRP Description
Detail
2022 OPRP
2023 OPRP
2024 OPRP
Purpose
To retain key executives and align their remuneration with shareholder value.
Award
Under the LTI, executives and key staff are offered options and/or performance rights (to acquire ordinary
shares of Hillgrove Resources Limited).
Exercise Price
Exercise price of nil in the event performance hurdles are met.
Voting Rights
There are no voting rights attached to options or performance rights.
LTI Allocation
The size of individual LTI grants for the CEO/MD and CFO is determined in accordance with the Board
approved remuneration strategy mix. See Section 4.3.
Service Period
To the later of 1 March 2025 or
when the Performance Hurdles
are met
To the later of 1 March 2026 or
when the Performance Hurdles
are met
To the later of 1 March 2027 or
when the Performance Hurdles
are met
Performance Hurdles
- Measurement Price
10.0 cents
12.0 cents
14.0 cents
- Price Calculation Methodology
10 day VWAP
10 day VWAP
10 day VWAP
- Start of Testing Date
1 March 2024
1 March 2025
1 March 2026
- First Exercise Date
1 March 2025
1 March 2026
1 March 2027
- Last Exercise Date
30 March 2026
30 March 2027
30 March 2028
On 1 July 2024, Mr R Fulker received a letter of offer for 6,800,000 rights associated with the above 2024 OPRP, as well as
5,000,000 sign-on rights.
The sign-on rights are subject to a two-year service period from the offer date, with a first exercise date of 1 July 2026, and a last
exercise date of 31 July 2026. There is no exercise or measurement price.
Both offers are contingent upon approval at the 2025 AGM and, therefore, are not considered granted as at 31 December 2024.
However, as the notifications were made in 2024, the associated share-based payment expense has been recognised in the current year,
in accordance with AASB 2, and is disclosed in the relevant sections of the Remuneration Report and Annual Financial Report.
4.4.4 Hedging and Margin Lending Prohibition
Under the Company’s Share Trading Policy and in accordance with the Corporations Act 2001, equity granted under the Company’s equity
incentive schemes must remain at risk until vested or exercised. It is a specific condition of the policy that no schemes are entered into, by an
individual or their associates, that specifically protects the unvested value of shares, options or performance rights allocated.
The Company, as required under the ASX Listing Rules, has a formal policy outlining how and when employees may deal in Hillgrove
Resources securities.
Hillgrove Resources Limited’s Share Trading Policy is available on the Company’s website www.hillgroveresources.com.au
53
HILLGROVE RESOURCES LIMITED
2024 FINANCIAL REPORT
FINANCIAL
REPORT
SUSTAINABILITY
REPORT
ANNUAL
REPORT
4.5 Relationship Between Performance and KMP Remuneration
4.5.1 Hillgrove Resources Financial Performance (31 December 2020 to 31 December 2024)
12 Months to 31 December
2020
2021
2022
2023
2024
Sales Revenue ($M)
20.4
-
-
-
112.4
Underlying EBITDA ($M)
(3.7)
(5.4)
(4.4)
(14.1)
22.5
Reported net profit / (loss) ($M)
(5.9)
(5.9)
(6.0)
(16.3)
(24.0)
Return on equity (ROE) % (1)
(24.0%)
(19.1%)
(17.0%)
(37.3%)
(49.8%)
Basic earnings per share (EPS) (cents)
(1.0)
(0.6)
(0.5)
(1.0)
(1.2)
Diluted EPS (cents)
(1.0)
(0.6)
(0.5)
(1.0)
(1.2)
Dividends paid (cents per share)
-
-
-
-
-
Share price as at 31 December (cents)
3.2
5.4
5.4
9.4
5.2
Total shareholder return (TSR) % (Annual)
(46.7%)
68.8%
0% (2)
74.0%
(44.7%)
(1) Based on average total equity.
(2) Share price as at 31 December was 5.4c in 2021 and 2022, which results in a 0% TSR in 2022.
4.6 KMP Remuneration Tables – Audited
Fixed Remuneration ($)
Short-term
Long-term
Total
Year
Salary and
Fees
Non-
monetary
Benefits
Super-
annuation
Benefits
Termination
Benefits
Long Service
Leave
Directors
Mr L Wallace (1)
CY24
253,329
-
4,581
-
13,139
271,049
CY23
467,884
-
18,342
-
39,568
525,794
Mr R Fulker (2)
CY24
305,000
-
16,825
-
-
321,825
CY23
-
-
-
-
-
-
Mr D Carter
CY24
112,612
-
12,669
-
-
125,281
CY23
112,867
-
12,133
-
-
125,000
Mr M Boyte
CY24
72,072
-
8,108
-
-
80,180
CY23
72,235
-
7,765
-
-
80,000
Mr R Higgins (5)
CY24
71,853
-
3,733
-
-
75,586
CY23
39,423
-
3,733
-
-
43,156
Total (Directors)
CY24
814,866
-
45,916
-
13,139
873,921
CY23
692,409
-
41,973
-
39,568
773,950
Other Key Management Personnel
Mr J Sutanto (4)
CY24
352,083
-
22,201
-
22,763
397,047
CY23
174,703
-
15,163
-
-
189,866
Total (Other KMP)
CY24
352,083
-
22,201
-
22,763
397,047
CY23
174,703
-
15,163
-
-
189,866
Total
CY24
1,166,949
-
68,117
-
35,902
1,270,968
CY23
867,112
-
57,136
-
39,568
963,816
Directors’ Report continued
Remuneration Report (Audited) continued
FINANCIAL
REPORT
SUSTAINABILITY
REPORT
ANNUAL
REPORT
54
HILLGROVE RESOURCES LIMITED
2024 FINANCIAL REPORT
Directors’ Report continued
Remuneration Report (Audited) continued
4.6 KMP Remuneration Tables – Audited continued
Variable Remuneration ($)
Total ($)
Proportion of Total
Remuneration
Year
Short-Term
Long-Term
Total
Fixed and
Variable
Fixed (%)
Variable (%)
Directors
Mr L Wallace (1)
CY24
-
83,952
83,952
355,001
76%
24%
CY23
147,656
334,624(3)
482,280
1,008,074
52%
48%
Mr R Fulker (2)
CY24
-
89,369
89,369
411,194
78%
22%
CY23
-
-
-
-
-
-
Mr D Carter
CY24
-
-
-
125,281
100%
0%
CY23
-
-
-
125,000
100%
0%
Mr M Boyte
CY24
-
-
-
80,180
100%
0%
CY23
-
-
-
80,000
100%
0%
Mr R Higgins (5)
CY24
-
118,391
118,391
193,977
39%
61%
CY23
-
-
-
43,156
100%
0%
Total (Directors)
CY24
-
291,712
291,712
1,165,633
75%
25%
CY23
147,656
334,624(3)
482,280
1,256,230
62%
38%
Other Key Management Personnel
Mr J Sutanto (4)
CY24
-
196,382
196,382
593,429
67%
33%
CY23
53,669
109,693(3)
163,362
353,228(4)
54%
46%
Total (Other KMP)
CY24
-
196,382
196,382
593,429
67%
33%
CY23
53,669
109,693(3)
163,362
353,228
54%
46%
Total
CY24
-
488,094
488,094
1,759,062
72%
28%
CY23
201,325
444,317(3)
645,642
1,609,458
60%
40%
(1) Mr L Wallace ceased being a KMP on 30 June 2024.
(2) Mr R Fulker was appointed on 1 July 2024.
(3) In the prior year, an incorrect service assumption was applied in calculating the share-based payment expense for L Wallace and J Sutanto. This has been restated, resulting in a
decrease of $61,138 for Mr L Wallace and $19,894 for Mr J Sutanto.
(4) The table shows Mr J Sutanto’s remuneration since 16 June 2023, when he was promoted to a KMP role. Additionally, Mr J Sutanto was incorrectly disclosed as an Executive
Director throughout the Remuneration Report in the prior year and has been restated into other KMP.
(5) Mr R Higgins was appointed a Non-Executive Director of the Company on 6 June 2023.
5.0 Equity Plan Disclosures
5.1 Employee Share Schemes (ESS) Operated by the Group
Plan Details
Type of Instruments
Details
Purpose
Employee share plan and
share issues
General Employee
Share Plan (GESP)
N/A
To incentivise and align part of employee remuneration to shareholder
value. No employees, including KMP, were a participant in the GESP.
Hillgrove Resources Option and
Performance Rights Plan
Option and
Performance Rights
Plan (OPRP)
Refer 4.4.3
To provide equity and cash incentive subject to meeting predetermined
service and performance conditions.
55
HILLGROVE RESOURCES LIMITED
2024 FINANCIAL REPORT
FINANCIAL
REPORT
SUSTAINABILITY
REPORT
ANNUAL
REPORT
5.2 Analysis of Share-Based Payments Granted as Remuneration to KMP
Details of the vesting profile of the options and performance rights granted as remuneration to each Key Management Personnel, and the
movements during the period are set out below:
Balance held at
31/12/23
Balance held at
31/12/24
KMP
Grant
Date
Vested
Unvested
Granted
Number
Vested and
Exercised
% Vested
Number
Forfeited
%
Forfeited
Vested
Unvested
Maximum
value for
future years
Mr D Carter
May-21
-
7,000,000
-
-
0%
-
0%
-
7,000,000
- (3)
Mr M Boyte
May-21
-
7,000,000
-
-
0%
-
0%
-
7,000,000
- (3)
Mr R Higgins
May-24
-
-
7,000,000
-
-
-
-
-
7,000,000
- (3)
Mr L Wallace (1)
May-21
-
5,000,000
-
5,000,000
100%
-
0%
-
-
-
Jul-22
-
5,000,000
-
-
0%
1,268,865
25%
-
3,731,135
N/A
Jul-23
-
5,000,000
-
-
0%
5,000,000
100%
-
-
-
Total (Directors) (2)
-
29,000,000
7,000,000
5,000,000
17%
6,268,865
22%
-
24,731,135
-
Mr J Sutanto
May-21
-
3,000,000
-
3,000,000
100%
-
0%
-
-
-
Jul-22
-
3,000,000
-
-
0%
-
0%
-
3,000,000
$52,924
Jul-23
-
3,000,000
-
-
0%
-
0%
-
3,000,000
$66,869
May-24
-
-
5,250,000
-
0%
-
0%
-
5,250,000
$257,738
TOTAL
-
9,000,000
5,250,000
3,000,000
33%
-
0%
-
11,250,000
$377,531
Total (Other KMP)
-
9,000,000
5,250,000
3,000,000
33%
-
0%
-
11,250,000
$377,531
(1) Mr L Wallace ceased being a KMP on 30 June 2024.
(2) Note that Mr R Fulker is excluded from the above figures. Refer to section 4.4.3 of the Remuneration Report for further details.
(3) No service conditions and therefore these were fully expensed in the year they were granted.
Directors’ Report continued
Remuneration Report (Audited) continued
FINANCIAL
REPORT
SUSTAINABILITY
REPORT
ANNUAL
REPORT
56
HILLGROVE RESOURCES LIMITED
2024 FINANCIAL REPORT
Directors’ Report continued
Remuneration Report (Audited) continued
5.3 Value of Options and Performance Rights Granted and on Foot to KMP as at 31 December 2024
KMP (3)
Outstanding options
and rights
Face Value per right (1)
($)
Fair Value per right (2)
($)
Fair Value
($)
Directors
Mr D Carter
2021 Options Tranche 1
4,000,000
0.052
0.0384
$153,440
2021 Options Tranche 2
3,000,000
0.052
0.0355
$106,353
Mr M Boyte
2021 Options Tranche 1
4,000,000
0.052
0.0384
$153,440
2021 Options Tranche 2
3,000,000
0.052
0.0355
$106,353
Mr R Higgins
2024 Options Tranche 1
4,000,000
0.052
0.0169
$67,652
2024 Options Tranche 2
3,000,000
0.052
0.0169
$50,739
Total (Directors)
21,000,000
$637,977
Other Key Management Personnel
Mr J Sutanto
2022 OPRP
3,000,000
0.052
0.0694
$208,200
2023 OPRP
3,000,000
0.052
0.039
$117,000
2024 OPRP
5,250,000
0.052
0.058
$304,500
Total (Other KMP)
11,250,000
$629,700
(1) The Face Value is the closing share price on 31 December 2024.
(2) The Fair Value has been based on a valuation in accordance with accounting standard AASB 2 “Share Based Payments”. The fair values are used for accounting purposes only.
These have been rounded to four decimal places for presentation in the above table.
(3) Note that Mr R Fulker is excluded from the above figures. Refer to section 4.4.3 of the Remuneration Report for further details.
5.4 Movement in Equity Held
The movement during the reporting period in the number of ordinary shares of Hillgrove Resources Limited held, directly, indirectly or
beneficially, by each specified Director and executive KMP, including their personally related entities:
Held as at 31/12/23
Exercise of Options
and Rights
Net Other Changes
Held as at 31/12/24
Directors and Other KMP
Mr D Carter
Shares
2,371,247
-
-
2,371,247
Mr M Boyte
Shares
4,048,253
-
-
4,048,253
Mr R Higgins
Shares
-
-
1,200,000
1,200,000
Mr R Fulker
Shares
-
-
700,000
700,000
Mr L Wallace
Shares
21,962,296
5,000,000
-
26,962,296 (1)
Mr J Sutanto
Shares
5,570,765
3,000,000
(500,000)
8,070,765
(1) As at 30 June 2024, the date Mr L Wallace ceased being a KMP.
57
HILLGROVE RESOURCES LIMITED
2024 FINANCIAL REPORT
FINANCIAL
REPORT
SUSTAINABILITY
REPORT
ANNUAL
REPORT
6.0 Service Contracts and Employment Agreements
The Company does not enter into service contracts for KMP. The following sets out details of the employment contract for the Executive KMPs
as at 31 December 2024.
Employee
Mr R Fulker
Mr J Sutanto
Position
Chief Executive Officer and Managing
Director
Chief Financial Officer and Company
Secretary
Commencement
1 July 2024
16 June 2023
Fixed Remuneration
$640,000 per annum
reviewed periodically
$393,038 per annum
reviewed periodically
Short-term Incentive
Up to 75% of fixed remuneration
Up to 50% of fixed remuneration
Long-term Incentive
Up to 50% of fixed remuneration
Up to 50% of fixed remuneration
Contract Length
Indefinite
Indefinite
Notice Periods for Resignation or Termination
6 months
3 months
Redundancy Benefit
National Employment Standards and
Group Redundancy Policy
National Employment Standards and
Group Redundancy Policy
Death or Total and Permanent Disability Benefit
No specific benefit
No specific benefit
Change of Control
No effect
No effect
Termination for Serious Misconduct
No notice required, remuneration to
the day less advance payments and
return of Company property.
No notice required, remuneration to
the day less advance payments and
return of Company property.
No payment of STI/LTI
No payment of STI/LTI
Statutory Entitlements
All leave and benefits due per
National Employment Standards
All leave and benefits due per
National Employment Standards
Post-Employment Restraints
For 6 months: must not recruit
employees or make adverse comments
or actions by either party
For 6 months: must not recruit
employees or make adverse comments
or actions by either party
Directors’ Report continued
Remuneration Report (Audited) continued
Corporate Governance
Statement
The Company’s Board is committed to
achieving the highest standards of corporate
governance.
Rounding of Amounts
The Company is of a kind referred to in
ASIC Corporations (Rounding in Financials/
Directors’ Reports) Instrument 2016/191,
dated 24 March 2016, and in accordance
with that Corporations Instrument amounts
in the directors‘ report and the financial
statements are rounded off to the nearest
hundred thousand dollars, unless otherwise
indicated.
Auditors Independence Declaration
A copy of the auditor’s independence declaration as required under section 307C of the
Corporations Act 2001 is set out on page 58.
Signed in accordance with a resolution of the Directors:
Dated at Adelaide this 28th day of February 2025.
Derek Carter
Robert Fulker
Chair
Managing Director
FINANCIAL
REPORT
SUSTAINABILITY
REPORT
ANNUAL
REPORT
58
HILLGROVE RESOURCES LIMITED
2024 FINANCIAL REPORT
PricewaterhouseCoopers, ABN 52 780 433 757
Level 11, 70 Franklin Street, ADELAIDE SA 5000, GPO Box 418, ADELAIDE SA 5001
T: +61 8 8218 7000, F: +61 8 8218 7999, www.pwc.com.au
Liability limited by a scheme approved under Professional Standards Legislation.
Auditor’s Independence Declaration
As lead auditor for the audit of Hillgrove Resources Limited for the year ended 31 December 2024, I
declare that to the best of my knowledge and belief, there have been:
(a)
no contraventions of the auditor independence requirements of the Corporations Act 2001 in
relation to the audit; and
(b)
no contraventions of any applicable code of professional conduct in relation to the audit.
This declaration is in respect of Hillgrove Resources Limited and the entities it controlled during the
period.
Julian McCarthy
Partner
PricewaterhouseCoopers
Adelaide
28 February 2025
Auditor’s Independence Declaration
59
HILLGROVE RESOURCES LIMITED
2024 FINANCIAL REPORT
FINANCIAL
REPORT
SUSTAINABILITY
REPORT
ANNUAL
REPORT
31 Dec 2024
31 Dec 2023
Note
$’000
$’000
Revenue
5
112,388
-
Other income
6
838
779
Expenses
7(a)
(122,269)
(15,387)
Interest and finance charges
7(b)
(14,381)
(941)
Impairment charges
7(c)
(380)
(103)
(Loss) before income tax
(23,804)
(15,652)
Income tax (expense) / benefit
8
(227)
(675)
(Loss) for the year attributable to owners
(24,031)
(16,327)
Comprehensive income
Items that may be reclassified to profit or loss:
-
-
Total comprehensive income for the period attributable to
equity holders of Hillgrove Resources Limited
(24,031)
(16,327)
Earnings per share for profit attributable to the ordinary
equity holders of the Company:
Basic earnings per share (cents)
10
(1.2)
(1.0)
Diluted earnings per share (cents)
10
(1.2)
(1.0)
The Consolidated Statement of Profit and Loss and Other Comprehensive Income
is to be read in conjunction with the Notes to the consolidated financial statements set out on pages 63 to 84.
Consolidated Statement of Profit or Loss and Other Comprehensive Income
For the year ended 31 December 2024
FINANCIAL
REPORT
SUSTAINABILITY
REPORT
ANNUAL
REPORT
60
HILLGROVE RESOURCES LIMITED
2024 FINANCIAL REPORT
31 Dec 2024
31 Dec 2023
Note
$’000
$’000
Current assets
Cash and cash equivalents
11
3,260
10,240
Trade and other receivables
12
3,715
1,461
Inventories
13
7,330
3,137
14,305
14,838
Non-current assets
Property, plant and equipment
14
76,881
69,089
Right-of-use assets
18
9,237
11,800
Exploration and evaluation expenditure
15
6,962
5,328
93,080
86,217
Total assets
107,385
101,055
Current liabilities
Trade and other payables
16
26,133
13,694
Provisions
17
1,114
1,090
Lease liabilities
18
4,343
4,311
Employee benefits payable
19
3,383
1,594
Deferred income
21
1,358
-
Other financial liabilities
22
4,470
2,997
40,801
23,686
Non-current liabilities
Provisions
20
8,334
8,500
Lease liabilities
18
4,342
7,506
Deferred income
21
631
2,000
Other financial liabilities
22
11,706
4,487
25,013
22,493
Total liabilities
65,814
46,179
Net assets
41,571
54,876
Equity
Contributed equity
23
302,711
292,947
Reserves
24
32,128
31,166
Accumulated losses
25
(293,268)
(269,237)
Total equity
41,571
54,876
The Consolidated Statement of Financial Position is to be read in conjunction with the
Notes to the financial statements set out on pages 63 to 84.
Consolidated Statement of Financial Position
As at 31 December 2024
61
HILLGROVE RESOURCES LIMITED
2024 FINANCIAL REPORT
FINANCIAL
REPORT
SUSTAINABILITY
REPORT
ANNUAL
REPORT
Contributed
equity
Reserves
Accumulated
losses
Total equity
Note
$’000
$’000
$’000
$’000
Balance 1 January 2023
256,088
29,388
(252,910)
32,566
(Loss) for the period
-
-
(16,327)
(16,327)
Transactions with owners:
Contributions of equity, net of transaction costs and tax
23
36,859
-
-
36,859
Share-based payments
34
-
1,778
-
1,778
Balance 31 December 2023
292,947
31,166
(269,237)
54,876
(Loss) for the period
-
-
(24,031)
(24,031)
Transactions with owners:
Contributions of equity, net of transaction costs and tax
23
9,764
-
-
9,764
Share-based payments
34
-
962
-
962
Balance 31 December 2024
302,711
32,128
(293,268)
41,571
The Consolidated Statement of Changes in Equity is to be read in conjunction with
the Notes to the consolidated financial statements set out on pages 63 to 84.
Consolidated Statement of Changes in Equity
For the year ended 31 December 2024
FINANCIAL
REPORT
SUSTAINABILITY
REPORT
ANNUAL
REPORT
62
HILLGROVE RESOURCES LIMITED
2024 FINANCIAL REPORT
31 Dec 2024
31 Dec 2023
Note
$’000
$’000
Cash flows from operating activities
Cash receipts in the course of operations (inclusive of GST)
106,838
17
Cash payments in the course of operations (inclusive of GST)
(85,835)
(9,556)
Net cash from/(used) by operating activities
29
21,003
(9,539)
Cash flows from investing activities
Payments for exploration and evaluation expenditure
(2,272)
(689)
Payments for property, plant and equipment
(29,950)
(21,824)
Proceeds on disposal of property, plant and equipment
200
55
Net cash used in investing activities
(32,022)
(22,458)
Cash flows from financing activities
Proceeds from issue of shares (net of transaction costs)
9,697
36,834
Lease payments
(5,719)
(664)
Interest received
61
762
Net cash from financing activities
4,039
36,932
Net (decrease)/increase in cash and cash equivalents
(6,980)
4,935
Cash and cash equivalents at the beginning of financial period
10,240
5,305
Cash and cash equivalents at the end of the financial period
11
3,260
10,240
The Consolidated Statement of Cash Flows is to be read in conjunction with
the Notes to the consolidated financial statements set out on pages 63 to 84.
Consolidated Statement of Cash Flows
For the year ended 31 December 2024
63
HILLGROVE RESOURCES LIMITED
2024 FINANCIAL REPORT
FINANCIAL
REPORT
SUSTAINABILITY
REPORT
ANNUAL
REPORT
1. Statement of Material
Accounting Policies
The principal accounting policies adopted in the preparation of
these consolidated financial statements are set out below. Where
an accounting policy is specific to one Note, the policy is described
in the Note to which it relates. The financial statements are for the
consolidated entity consisting of Hillgrove Resources Limited and its
subsidiaries.
(a) Going concern
The consolidated financial statements have been prepared on a going
concern basis, which assumes the Group will be able to realise its
assets and discharge its liabilities in the normal course of business.
For the twelve-month period ended 31 December 2024, the Group
reported a loss of $24.0 million (31 December 2023: $16.3 million
loss) and a net current liability of $26.5 million (31 December 2023:
$8.8 million) as at that date.
The Group holds $3.3 million (31 December 2023: $10.2 million) in
cash and cash equivalents and has generated net cash inflows from
operating activities of $21.0 million (31 December 2023: cash outflow
of $9.5 million) for the twelve-month period ended 31 December
2024. Revenue was $112.4 million (31 December 2023: $0.0 million).
Operational performance has improved in January 2025 and is
expected to progressively improve during the 2025 financial year.
The most recent cash flow forecast indicates positive cash flows
from operations, which will enable the Group to meet its obligations,
build cash reserves, and manage working capital without the need for
external financing, however, this is dependent on the Group achieving
planned levels of production at the Kanmantoo copper mine. The
cash flow forecast considered the performance of the Kanmantoo
copper mine during the twelve month period ended 31 December
2024. To mitigate short-term downside risk in copper prices for
expected output, as of 31 December 2024, the Group has fixed
pricing for 7,900 tonnes of future copper production at an average
price of $14,056 per tonne.
If required, the Directors could further generate positive cash inflow
through one or a combination of the following:
X
X Managing the timing of capital development drives within the mine;
X
X Reducing operational expenditure programs and maximising mine
output;
X
X Drawing down on the existing $10 million debt facility; and/or
X
X Support from existing shareholders and/or new shareholders.
As a result of the dependence on achieving planned levels of
production through the Kanmantoo mine, there is a material
uncertainty that may cast significant doubt on the Group’s ability to
continue as a going concern and, therefore, that it may be unable
to realise its assets and discharge its liabilities in the normal course
of business. However, the Directors believe that the Group will be
successful in the above matters and, accordingly, have prepared the
financial report on a going concern basis.
(b) Basis of preparation
This general purpose financial report has been prepared in
accordance with Australian Accounting Standards, Interpretations
and other authoritative pronouncements of the Australian Accounting
Standards Board and the Corporations Act 2001. The financial
statements comprise the consolidated financial statements of the
Group. For the purposes of preparing the consolidated financial
statements, Hillgrove Resources Limited is a for-profit entity.
(i)
Compliance with International Financial
Reporting Standards
Compliance with Australian Accounting Standards ensures that the
consolidated financial statements and notes of Hillgrove Resources
Limited comply with International Financial Reporting Standards
(IFRSs).
(ii)
Historical cost convention
These financial statements have been prepared under the historical
cost convention, as modified when necessary, by the revaluation
of certain financial assets and liabilities to fair value through other
comprehensive income or through profit or loss.
(iii) Critical accounting estimates
The preparation of financial statements requires the use of certain
critical accounting estimates. It also requires management to exercise
its judgement in the process of applying the Group’s accounting
policies. The areas involving a higher degree of judgement or
complexity, or areas where assumptions and estimates are material to
the financial statements are disclosed in Note 2.
(c) Foreign currency translation
(i)
Functional and presentation currency
Items included in the financial statements of each of the Group’s
entities are measured using the currency of the primary economic
environment in which the entity operates (‘the functional currency’).
The consolidated financial statements are presented in Australian
dollars, which is Hillgrove Resources Limited’s functional and
presentation currency.
(ii)
Transactions and balances
Foreign currency transactions are translated into the functional
currency using the exchange rates prevailing at the dates of the
transactions. Foreign exchange gains and losses resulting from the
settlement of such transactions and from the translation at year end
exchange rates of monetary assets and liabilities denominated in
foreign currencies are recognised in the profit or loss, except when
deferred in equity as qualifying cash flow hedges and qualifying net
investment hedges.
For the purpose of presenting consolidated financial statements,
the assets and liabilities of Hillgrove Resources Limited’s foreign
operations are translated into Australian dollars using exchange rates
prevailing at the end of the reporting period. Income and expense
items are translated at the average exchange rates for the period,
unless exchange rates fluctuated significantly during that period, in
which case the exchange rates at the dates of the transactions are
used. Exchange rate differences arising, if any, are recognised in
other comprehensive income and accumulated in equity (attributed to
non-controlling interests as appropriate).
Notes to the Consolidated Financial Statements For the year ended 31 December 2024
FINANCIAL
REPORT
SUSTAINABILITY
REPORT
ANNUAL
REPORT
64
HILLGROVE RESOURCES LIMITED
2024 FINANCIAL REPORT
1. Statement of Material
Accounting Policies continued
(d) Impairment of assets
The carrying value of property, plant and equipment is assessed for
impairment whenever there is an indicator that the asset may be
impaired. Determining whether property, plant and equipment is
impaired requires an estimation of the recoverable value of the Cash
Generating Unit (“CGU”) to which property, plant and equipment has
been allocated. Impairment is recognised when the carrying amount
exceeds the recoverable amount.
The recoverable amount is the higher of an assets fair value less
costs to sell and its value-in-use (VIU). In its impairment assessment,
the Group determined the recoverable amount based on VIU. The
assessment was undertaken using a discounted cash flow approach.
Cash flow projections are based on the CGU’s life of mine plan.
In assessing the VIU, the estimated future post-tax cash flows are
discounted to their present value using a post-tax discount rate that
reflects the current market assessment of the time value of money
and business risk. The valuation is considered level 3 in the fair value
hierarchy due to unobservable inputs used in the valuation. Assets
that have undergone an impairment charge are reviewed for possible
reversal of the impairment at each reporting date.
The specific methods and assumptions used to estimate the
discounted future cash flows of the Group’s CGU are outlined in more
detail in Note 2 “Critical accounting estimates and judgements”.
(e) Goods and Services Tax (GST)
Revenues, expenses and assets are recognised net of the amount of
associated GST, unless the GST incurred is not recoverable from the
taxation authority. In this case it is recognised as part of the cost of
acquisition of the asset or as part of the expense.
Receivables and payables are stated inclusive of the amount of GST
receivable or payable. The net amount of GST recoverable from, or
payable to, the taxation authority is included with other receivables or
payables in the consolidated statement of financial position.
Cash flows are presented on a gross basis. The GST components
of cash flows arising from investing or financing activities which are
recoverable from, or payable to the taxation authority, are presented
as operating cash flows.
(f)
Government grants
Government grants are recognised where there is reasonable
assurance that the grant will be received, and all attached conditions
will be complied with. The recognition treatment of the grant depends
on the purpose of the grant as follows:
i.
Relating to an expense item – recognised as a reduction of the
expense to which it relates.
ii. Relating to property, plant and equipment – recognised as
deferred income within the Consolidated Statement of Financial
Position and released to the Consolidated Statement of Profit
and Loss and Other Comprehensive Income over the life of the
associated asset.
iii. Relating to exploration activities – recognised as a reduction in the
carrying value of the associated exploration asset.
(g) Financial liabilities
Financial liabilities are initially measured at fair value, net of transaction
costs, and are subsequently measured at amortised cost using the
effective interest method.
The effective interest method is the method of calculating the
amortised cost of a financial liability and for the allocation and
recognition of the associated interest expense in the relevant period.
The effective interest rate is the rate that exactly discounts the
estimated future cashflows of the financial liability to its initial fair value.
(h) Rounding of amounts
The Company is a company of the kind referred to in ASIC
Corporations (Rounding in Financials/Directors’ Reports Instrument
2016/191, dated 24 March 2016, and in accordance with that
Corporations Instrument, amounts in the directors’ report and the
financial statements are rounded off to the nearest thousand dollars,
unless otherwise indicated).
(i)
Standards and interpretations in issue
(i)
Mandatory standards adopted in the
current reporting period
The Group has adopted all the new and revised Standards and
Interpretations issued by the Australian Accounting Standards Board
that are relevant to its operations and effective for the current annual
reporting period. The adoption of these mandatory standards has
not had a material impact on the Group’s accounting policies, or the
amounts reported during the year.
(ii)
Early adoption of standards
There are no standards on issue that are expected to have a material
impact on the group in the current or future reporting periods.
Notes to the Consolidated Financial Statements For the year ended 31 December 2024 cont.
65
HILLGROVE RESOURCES LIMITED
2024 FINANCIAL REPORT
FINANCIAL
REPORT
SUSTAINABILITY
REPORT
ANNUAL
REPORT
2. Critical Accounting Estimates
and Judgements
The Group makes estimates and assumptions concerning the future.
The resulting accounting estimates will, by definition, seldom equal
the related actual results. Estimates and judgements are continually
evaluated and are based on historical experience and other factors,
including expectations of future events that are believed to be
reasonable under the circumstances. The estimates and assumptions
that have a significant risk of causing a material adjustment to the
carrying amounts of assets and liabilities are discussed below:
(a) Recoverability of non-current assets
The Group has a single Cash Generating Unit (CGU) being the
Kanmantoo copper mine. The recoverable amount is based on
value in use calculations which require the use of assumptions. The
estimates of discounted future cash flows for the Kanmantoo CGU
are based on significant assumptions including:
X
X Estimates of the quantities of resources, and the timing of access
to those resources;
X
X Future production levels based on plant throughput and
recoveries;
X
X Future copper, gold and silver prices based on spot pricing;
X
X Future exchange rates for the Australian dollar to US dollar based
on spot prices;
X
X Future operating costs of production, capital expenditure and
rehabilitation expenditure;
X
X The discount rate most appropriate to the CGU; and
X
X The timing and amounts to be received from the sale of processing
equipment and land following completion of mining and
processing activities.
(b) Exploration and evaluation expenditure
The application of the Group’s accounting policy for exploration and
evaluation expenditure requires judgement in determining whether
future economic benefits are likely, either from development and
commercial exploitation, or sale of the respective areas. Estimates
and assumptions made may change if new information becomes
available.
(c) Restoration, rehabilitation and
environmental obligations
Provision is made for the costs of decommissioning and site
rehabilitation costs when the related environmental disturbance takes
place. Provisions are recognised at the net present value of future
expected costs as outlined in Notes 17 and 20.
The provision represents management’s best estimate of the costs
that will be incurred, but significant judgement is required on cost
estimates including inflation and discount rates and changes to the
lives of operations, as many of these costs will not crystallise until the
end of the life of the mine.
(d) Fair value of financial liabilities
Future royalty payments to Freepoint are classified as a financial
liability and measured at amortised cost.
Financial liabilities at amortised cost are initially recognised at fair
value less transaction costs and are thereafter carried at amortised
cost using the effective interest method. The effective interest rate
is the rate that discounts estimated future cashflows to the initial fair
value and this was calculated to be 24.06%, which does not change
throughout the life of the liability.
At each reporting period an interest expense will be recognised in the
profit and loss representing the unwinding of the discount reflected
in the amortised cost carrying value. In addition, recalculations may
be required at reporting periods for any known changes to future
estimated cash flows related to the settlement of the liability i.e.,
updated copper pricing, ore reserves etc. When changes are not the
result of movements in the market rates of interest, the cashflows are
updated but continue to be discounted using the original effective
interest rate. Any gain or loss on this recalculation is recognised in the
Consolidated Statement of Profit and Loss and Other Comprehensive
Income.
Refer to Note 26(a) for analysis of the estimated impact of movements
in the copper price on the financial liability valuation.
(e) Lease liabilities
Certain contractual arrangements not in the form of a lease require the
Group to apply significant judgement in evaluating whether the Group
controls the right to direct the use of assets and therefore whether
the contract contains a lease. Management considers all facts and
circumstances in determining whether the Group or the supplier has
the rights to direct how, and for what purpose, the underlying assets
are used in certain mining contracts. Judgement is used to assess
which decision-making rights mostly affect the benefits of use of the
assets for each arrangement. Where a contract includes the provision
of non-lease services, judgement is required to identify the lease and
non-lease components.
Where the Group cannot readily determine the interest rate implicit
in the lease, estimation is involved in the determination of the
incremental borrowing rate to measure lease liabilities.
The incremental borrowing rate reflects the rates of interest a
lessee would have to pay to borrow over a similar term, with similar
security, the funds necessary to obtain an asset of similar value to
the right-of-use asset in a similar economic environment. Under the
Group’s portfolio approach to debt management, the Group does not
specifically borrow for asset purchases. Therefore, the incremental
borrowing rate is estimated referencing the latest data available to
management based on relevant contracts that offer interest applied
credit facilities.
Notes to the Consolidated Financial Statements For the year ended 31 December 2024 cont.
FINANCIAL
REPORT
SUSTAINABILITY
REPORT
ANNUAL
REPORT
66
HILLGROVE RESOURCES LIMITED
2024 FINANCIAL REPORT
2. Critical Accounting Estimates
and Judgements continued
(f)
Reserve and resource estimates
To estimate reserves and resources (reserves), assumptions are
required about a range of technical and economic factors, including
quantities, qualities, production techniques, recovery efficiency,
production and transport costs, commodity supply and demand,
copper prices and exchange rates. Estimating the quantity and/or
quality of reserves requires the size, shape and depth of ore bodies to
be determined by analysing geological data, such as drilling samples
and geophysical survey interpretations. Economic assumptions used
to estimate reserves change from period-to-period as additional
technical and operational data is generated. This process may require
complex and difficult geological judgements to interpret the data.
Estimates of reserves may change from period-to-period as the
economic assumptions used to estimate reserves change and
additional geological data is generated during operations. Changes
in reserves may affect the Group’s financial results and financial
position in a number of ways, including: asset carrying values may
be affected due to changes in estimated future production levels
depreciation, depletion and amortisation charged to the income
statement may change where such charges are determined on the
units of production basis, or where the useful economic lives of
assets change rehabilitation provisions may change where changes
in estimated reserves affect expectations about the timing or cost of
these activities financial liabilities may change as estimated reserves
will impact future revenues on which royalties are based.
(g) Amortisation of mine development asset
Major mine development costs incurred that are capitalised that
benefit the entire ore body are amortised using a units of production
(“UOP”) method and amortised over the reserves of the entire ore
body. Sustaining mine development costs incurred that are capitalised
that benefit specific areas of the ore body are also amortised on a
UOP basis and amortised over the reserves specific to that area.
There are significant assumptions involved in estimating reserve data,
that is defined under the JORC code, that drives forecast recoverable
tonnes which involves complex and difficult geological judgements to
interpret the data.
3. Dividends
31 Dec 2024
31 Dec 2023
$’000
$’000
Franked dividends paid
-
-
Amount of franking credits
available to shareholders for
subsequent financial years
17,556
17,556
4. Financial Reporting by Segment
The Consolidated Entity has identified its operating segment based on
internal reports that are reviewed and used by the executive team in
assessing performance and determining the allocation of resources.
Management currently identifies the Consolidated Entity as having
only one reportable segment, being exploration, development and
operations for minerals through its ownership of the Kanmantoo
copper mine. The financial results from this segment are equivalent to
the financial statements of the Group. The financial results from this
segment are equivalent to the financial statements of the consolidated
entity. All assets are located in Australia.
5. Revenue
31 Dec 2024
31 Dec 2023
$’000
$’000
Copper
111,418
-
Gold
5,382
-
Silver
2,936
-
Treatment and refining
deductions
(7,348)
-
Total revenue
112,388
-
Revenue is measured at the fair value of the consideration received or
receivable and recognised at a point in time.
The Group sells copper concentrate through an offtake agreement
and uses CIF terms (cost, insurance, and freight) for vessel chartering.
Under AASB 15, the Company has three performance obligations
regarding the concentrate sale: delivering and transferring title at the
loading port, loading onto the ship, and transporting to the destination
port.
The price for delivering concentrate to the port includes its value
adjusted for treatment and refining charges.
The price can be declared as either one of: one month before the
month of shipment or synthetically spread adjusted to five months
after the month of arrival at the discharge port.
6. Other Income
31 Dec 2024
31 Dec 2023
$’000
$’000
Interest
67
763
Release of government grant
deferred income
730
-
Sale of excess seed
25
16
Other
16
-
Total other income
838
779
Notes to the Consolidated Financial Statements For the year ended 31 December 2024 cont.
67
HILLGROVE RESOURCES LIMITED
2024 FINANCIAL REPORT
FINANCIAL
REPORT
SUSTAINABILITY
REPORT
ANNUAL
REPORT
7. Expenses
Profit or loss before income tax includes the following expenses:
(a) Expenses per profit or loss
31 Dec 2024
31 Dec 2023
Note
$’000
$’000
Mining costs
(i)
53,368
5,964
Processing costs
(ii)
20,465
-
Transport and shipping
(iii)
4,024
-
Other site costs
5,246
4,940
Movement in inventory
stockpile valuation (cash
costs)
(2,500)
(974)
Government royalties
(iv)
5,383
-
Corporate costs
(v)
4,736
3,741
Processing plant
commissioning
-
1,310
Depreciation and
amortisation
31,763
746
Movement in inventory
stockpile valuation (non-cash
costs)
210
-
Rehabilitation provision
adjustment
(vi)
(262)
(115)
Gain on sale of fixed assets
(167)
(50)
Foreign exchange gain
3
(175)
Total expenses
122,269
15,387
(i)
Mining costs
Mining costs refers to non-capitalised development, drilling and
blasting, loading and hauling, underground diamond drilling, mine
services, labour, supervision, and technical support.
(ii)
Processing costs
Includes costs related to crushing, grinding, flotation and other
associated processing activities excluding treatment and refining
charges.
(iii)
Transport and shipping
All charges related to the transport and shipment of saleable
concentrate from site and port.
(iv)
Government royalties
The accrued expenditure relating to the royalty payable to the South
Australian government, directly linked to the revenue generated from
operations less any allowable deductions.
(v)
Corporate costs
Reflects costs mainly associated with running the corporate head
office, board of directors, and employee share option expenses.
(vi)
Rehabilitation provision adjustment
Reflects the expense associated with the reduction in the
rehabilitation provision due to a change in model. This is part of the
reduce provision recognised in Note 20.
(b) Interest and finance charges
31 Dec 2024
31 Dec 2023
$’000
$’000
Discount on unwind of royalty
financial liability
1,572
1,692
Discount on unwind of
rehabilitation provision
350
360
Interest on leases
1,103
278
Borrowing costs, bank fees and
charges
8
8
Interest on financial liabilities
1,748
6
Revaluation of royalty financial
liability (refer to Note 22)
9,600
(1,403)
Total interest and finance
charges
14,381
941
(c) Impairment charges
31 Dec 2024
31 Dec 2023
$’000
$’000
Exploration assets
380
103
Expenditure on exploration areas of interest where the prospect of
recoupment of costs capitalised through successful development and
commercial exploitation is no longer considered likely, is charged to
the profit or loss as an impairment charge.
(d) Other required disclosures
31 Dec 2024
31 Dec 2023
$’000
$’000
Employee benefits (excluding
share-based payments)
24,764
8,916
Employee share-based
payments (see Note 34)
752
1,036
(e) Assurance services
The following fees were paid or payable for services provided by
the auditor of the parent entity, its related practices and non-related
audit firms:
31 Dec 2024
31 Dec 2023
$
$
(i) Audit Services
PricewaterhouseCoopers:
Audit and review of financial
reports and other audit work
under the Corporations Act 2001
224,080
202,100
224,080
202,100
(ii) Taxation Services
Services by
PricewaterhouseCoopers:
Tax advice and tax compliance
30,000
48,270
30,000
48,270
Notes to the Consolidated Financial Statements For the year ended 31 December 2024 cont.
FINANCIAL
REPORT
SUSTAINABILITY
REPORT
ANNUAL
REPORT
68
HILLGROVE RESOURCES LIMITED
2024 FINANCIAL REPORT
8. Income Tax
31 Dec 2024
31 Dec 2023
$’000
$’000
(a) Income tax expense
Income tax expense comprises:
- Current tax expense
-
-
- Deferred tax expense
227
675
Income tax expense
227
675
(b) Numerical reconciliation of
income tax expense to prima
facie tax payable
(Loss) from continuing operations
before income tax expense/(benefit)
(23,804)
(15,651)
Tax at the Australian tax rate of 30%
(7,141)
(4,695)
Tax effect of amounts which are not
deductible in calculating taxable
income:
- Share based payments
226
311
- Non-deductible expenses
-
5
- Tax temporary differences
(recognised) / not recognised
7,142
5,054
Income tax expense
227
675
(c) Amounts recognised
directly in equity
Deferred tax – recognised directly
in equity
227
675
(d)
Tax consolidation legislation
The income tax expense or revenue for the period is the tax payable
on the current period’s taxable income based on the national income
tax rate for each jurisdiction adjusted by changes in deferred tax
assets and liabilities attributable to temporary differences between the
tax bases of assets and liabilities and their carrying amounts in the
financial statements, and to unused tax losses. The Group’s liability
for current tax is calculated using tax rates that have been enacted or
substantively enacted by the end of the reporting period. Current and
deferred tax balances attributable to amounts recognised directly in
equity are also recognised directly in equity.
Hillgrove Resources Limited and its wholly-owned Australian
controlled entities have implemented the tax consolidation legislation.
The head entity, Hillgrove Resources Limited, and the controlled
entities in the tax consolidated group account for their own current
and deferred tax amounts. These tax amounts are measured as if
each entity in the tax consolidated group continues to be a stand-
alone taxpayer in its own right. The entities in the tax-consolidated
group entered into a tax sharing agreement and a tax funding
agreement. On adoption of the legislation, the entities in the tax
consolidated group entered into a tax sharing agreement which, in
the opinion of the Directors, limits the joint and several liability of the
wholly owned entities in the case of a default by the head entity.
The entities have also entered a tax funding agreement under which
the wholly-owned entities fully compensate the head entity for any
current tax payable assumed and are compensated by the head
entity for any current tax receivable and deferred tax assets relating
to unused tax losses or unused tax credits that are transferred to it
under the tax consolidation legislation.
9. Deferred Tax
(i) Deferred tax assets have been recognised to the extent of the
deferred tax liability. As such there are no deferred tax balances
on the statement of financial positions.
(ii) Deferred tax assets and liabilities are recognised for temporary
differences at the tax rates expected to apply when the assets
are recovered or liabilities are settled, based on those tax rates
which are enacted or substantively enacted for each jurisdiction.
The relevant tax rates are applied to the cumulative amounts of
deductible and taxable temporary differences to measure the
deferred tax asset or liability.
An exception is made for certain temporary differences arising
from the initial recognition of an asset or a liability. No deferred
tax asset or liability is recognised in relation to these temporary
differences if they arose in a transaction, other than a business
combination, that at the time of the transaction did not affect
either accounting profit or taxable profit or loss.
Deferred tax assets and liabilities are offset when there is a
legally enforceable right to offset current tax assets and liabilities
and when the deferred tax balances relate to the same taxation
authority.
(iii) Deferred tax assets are recognised for deductible temporary
differences and unused tax losses only if it is probable future
taxable amounts will be available to utilise those temporary
differences and losses.
The balance of deferred tax assets comprises temporary differences
attributable to:
31 Dec 2024
31 Dec 2023
$’000
$’000
Tax losses and credits
84,761
77,772
Business related costs
686
717
Provisions and accruals
3,860
3,379
Accrued expenses
216
-
Deferred income
5,234
600
Lease liability
2,606
3,545
Total deferred tax assets
97,363
86,013
Notes to the Consolidated Financial Statements For the year ended 31 December 2024 cont.
69
HILLGROVE RESOURCES LIMITED
2024 FINANCIAL REPORT
FINANCIAL
REPORT
SUSTAINABILITY
REPORT
ANNUAL
REPORT
9. Deferred Tax continued
The balance of deferred tax liabilities comprises temporary differences
attributable:
31 Dec 2024
31 Dec 2023
$’000
$’000
Exploration expenditure / PPE
4,472
154
Total deferred tax liabilities
4,472
154
Net deferred tax assets
92,891
85,859
Deferred tax assets not
recognised
(92,891)
(85,859)
Recognised net deferred tax
assets
-
-
The company has unrecognised capital losses of $11.3 million
(2023: $11.3 million).
10. Earnings Per Share
Basic earnings per share is calculated by dividing the profit
attributable to equity holders of the Company, excluding any costs of
servicing equity other than ordinary shares, by the weighted average
number of ordinary shares outstanding during the year, adjusted for
bonus elements in ordinary shares issued during the year.
Diluted earnings per share adjusts the figures used in the
determination of basic earnings per share to consider the after
income tax effect of interest and other financing costs associated with
dilutive potential ordinary shares and the weighted average number of
shares assumed to have been issued for no consideration in relation
to dilutive potential ordinary shares. Potential ordinary shares shall be
treated as dilutive when, and only when, their conversion to ordinary
shares would decrease earnings per share or increase loss per share
from continuing operations.
Classification of securities as ordinary shares
Ordinary shares have been classified as ordinary shares and included
in basic earnings per share.
Classification of securities as potential shares
Outstanding performance rights have been classified as potential
ordinary shares and included in diluted earnings per share.
(a)
Weighted average number of shares used
as the denominator
31 Dec 2024
31 Dec 2023
Number
Number
Weighted average number
of ordinary shares used in
calculating basic and dilutive EPS
2,062,272,006
1,685,663,053
(b)
Reconciliation of earnings used in calculating
earnings per share
31 Dec 2024
31 Dec 2023
$’000
$’000
(i) Basic earnings
(Loss) from continuing operations
attributable to the ordinary equity
holders of the Company:
(24,031)
(16,327)
(ii) Diluted earnings
(Loss) from continuing operations
attributable to the ordinary equity
holders of the Company:
(24,031)
(16,327)
31 Dec 2024
31 Dec 2023
Cents
Cents
(i) Basic earnings per share
(Loss) from continuing operations
attributable to the ordinary equity
holders of the Company:
(1.2)
(1.0)
(ii) Diluted earnings per share
(Loss) from continuing operations
attributable to the ordinary equity
holders of the Company:
(1.2)
(1.0)
11. Cash and Cash Equivalents
31 Dec 2024
31 Dec 2023
$’000
$’000
Cash at bank and on hand
2,908
9,924
Restricted cash
352
316
3,260
10,240
Cash and cash equivalents include cash on hand, deposits held
at call with financial institutions, other short-term and highly liquid
investments that are readily convertible to known amounts of cash
and which are subject to an insignificant risk of changes in value.
Restricted cash cannot be accessed without consent and comprises
two bank guarantees.
12. Trade and Other Receivables
31 Dec 2024
31 Dec 2023
$’000
$’000
Trade receivables
1,487
-
Prepayments
211
377
Other receivables
764
515
GST receivable
1,253
569
3,715
1,461
Notes to the Consolidated Financial Statements For the year ended 31 December 2024 cont.
FINANCIAL
REPORT
SUSTAINABILITY
REPORT
ANNUAL
REPORT
70
HILLGROVE RESOURCES LIMITED
2024 FINANCIAL REPORT
13. Inventories
31 Dec 2024
31 Dec 2023
$’000
$’000
Current assets
Stores and consumables
4,063
2,163
ROM stockpiles
97
974
Concentrates
3,170
-
Total current inventory
7,330
3,137
Consumable Inventory and Spares
Stores and consumables comprise of materials used in the mining
and production process. These inventories are valued at the lower
of cost and net realisable value (NRV), with cost determined using
the weighted average method. Cost includes purchase price,
transportation, and other directly attributable costs incurred to
bring the inventory to site. Obsolescence and slow-moving stock
are regularly reviewed, with appropriate provisions made where
necessary.
During the current year, the provision methodology for stores
and consumables was updated following the commencement
of production, as the historic provision applied during care and
maintenance was no longer appropriate. This resulted in a reduction
in the provision and a corresponding increase in inventory value of
$0.9 million.
Run-of-Mine (ROM) Stockpiles
ROM stockpiles relate to unprocessed ore extracted from mining
operations. The cost of ROM stockpiles is determined by allocating
costs between production and development activities, with costs
and activities monitored at each stage of the production process
and assigned to physical units accordingly. These are costs that are
incurred to date and estimated future costs to process the stockpiles.
ROM stockpiles are valued at the lower of cost and NRV. NRV is
based on the estimated amount expected to be realised when
the inventory is fully processed and sold. This estimation requires
judgement regarding the quantity of recoverable metal, future
commodity prices, production costs, and selling costs.
Concentrates
Concentrates represent processed mineral products that are ready
for sale. These inventories are recorded at the lower of cost and
NRV, with cost determined using the weighted average method. Cost
includes direct production costs, an allocation of processing costs,
and transport costs to the point of sale. NRV is based on estimated
future sales prices, less selling costs.
Stockpile and concentrate valuations are reviewed regularly,
considering fluctuations in commodity prices, processing recoveries,
and cost structures to ensure appropriate valuation adjustments are
made when necessary.
14. Property, Plant and Equipment
31 Dec 2024
31 Dec 2023
$’000
$’000
Land and buildings
At cost
5,840
5,840
Accumulated depreciation and
impairment
(379)
(379)
5,461
5,461
Plant and equipment
At cost
87,025
82,138
Accumulated depreciation and
impairment
(64,568)
(60,465)
22,457
21,673
Motor vehicles
At cost
1,075
952
Accumulated depreciation
(550)
(456)
525
496
Mine development
At cost
231,134
201,519
Accumulated depreciation and
impairment
(182,881)
(160,060)
48,253
41,459
Capital work in progress
At cost
185
-
Accumulated depreciation
-
-
185
-
Total property, plant and
equipment
76,881
69,089
All property, plant and equipment is stated at historical cost less
accumulated depreciation and accumulated impairment losses.
Historical cost includes expenditure that is directly attributable to the
acquisition of the items and costs incurred in bringing assets into
use. Subsequent costs are included in the asset’s carrying amount
or recognised as a separate asset, as appropriate, only when it is
probable that future economic benefits associated with the item
will flow to the group and the cost of the item can be measured
reliably. The carrying amount of any component accounted for as a
separate asset is derecognised when replaced. All other repairs and
maintenance are charged to profit or loss during the reporting period
in which they are incurred.
The units of production basis is used when depreciating mine specific
assets which results in a depreciation charge proportional to the
depletion of the forecast remaining life of mine production. Changes in
factors such as estimates of proven and probable reserves that affect
the unit of production calculations are applied on a prospective basis.
Notes to the Consolidated Financial Statements For the year ended 31 December 2024 cont.
71
HILLGROVE RESOURCES LIMITED
2024 FINANCIAL REPORT
FINANCIAL
REPORT
SUSTAINABILITY
REPORT
ANNUAL
REPORT
14. Property, Plant and
Equipment continued
The straight line method of depreciation to allocate cost, net of
residual values, is used for all remaining assets over estimated useful
lives as follows:
X
X Motor Vehicles
3 years
X
X Plant & Equipment
3 – 10 years
The duration reflects the specific nature of the assets. Freehold land
is not depreciated. The assets’ residual values and useful lives are
reviewed, and adjusted if appropriate, at each reporting date. During
the period of care and maintenance, depreciation of the processing
plant ceased.
Mine development includes development costs incurred related to the
Kanmantoo mine.
When proven mineral reserves are determined and development
is approved, capitalised exploration and evaluation expenditure
is reclassified as mine development within property, plant and
equipment. All subsequent development expenditure is capitalised
and classified as mine development, provided commercial viability
conditions continue to be satisfied. On completion of development, all
relevant assets included in mine development are reclassified as plant
and equipment.
Reconciliations of the carrying amounts for each class of asset are set
out below:
31 Dec 2024
31 Dec 2023
$’000
$’000
Land and buildings
Carrying amount at beginning of
period
5,461
4,898
Additions
-
563
Depreciation
-
-
Carrying amount at end of period
5,461
5,461
Plant and equipment
Carrying amount at beginning of
period
21,673
13,610
Additions
4,569
7,214
Depreciation
(4,387)
(582)
Transfers
744
1,431
Disposals
(142)
-
Carrying amount at end of period
22,457
21,673
Motor vehicles
Carrying amount at beginning of
period
496
82
Additions
314
501
Depreciation
(231)
(87)
Transfers
17
Disposals
(71)
-
Carrying amount at end of period
525
496
Mine development
Carrying amount at beginning of
period
41,459
21,441
Additions
28,335
21,799
Depreciation
(22,822)
(350)
Transfers
1,281
(1,431)
Carrying amount at end of period
48,253
41,459
Capital work in progress
Additions
2,227
-
Transfers
(2,042)
-
Carrying amount at end of period
185
-
Total property, plant and
equipment
76,881
69,089
Notes to the Consolidated Financial Statements For the year ended 31 December 2024 cont.
FINANCIAL
REPORT
SUSTAINABILITY
REPORT
ANNUAL
REPORT
72
HILLGROVE RESOURCES LIMITED
2024 FINANCIAL REPORT
15. Exploration and Evaluation
Expenditure
The Group accumulates certain costs associated with exploration
activities on specific areas of interest where the Group has rights
of tenure and where exploration and evaluation activities in the
area of interest have not reached a stage that permits a reasonable
assessment of the existence of economically recoverable reserves.
Exploration and evaluation assets are initially measured at cost
and include acquisition and renewal of rights to explore, drilling,
sampling, assaying and depreciation of assets used in exploration
and evaluation activities. General and administrative costs are only
included where they are directly related to a particular area of interest.
Exploration and evaluation assets are assessed for impairment when
facts and circumstances suggest that the carrying amount of an
exploration and evaluation asset may exceed its recoverable amount.
The recoverable amount of the exploration and evaluation asset is
estimated to determine the extent of the impairment loss (if any).
Where an impairment subsequently reverses, the carrying amount
of the asset is increased to the revised estimate of its recoverable
amount, but only to the extent that the increased carrying amount
does not exceed the carrying amount that would have been
determined had no impairment loss been recognised for the asset in
previous periods.
Expenditure on exploration areas of interest where the prospect of
recoupment of costs capitalised through successful development and
commercial exploitation is no longer considered likely, is charged to
the profit or loss as an impairment charge.
Where a decision has been made to proceed with development in
respect of a particular area of interest, the relevant exploration and
evaluation asset is tested for impairment and the balance is then
reclassified to development.
31 Dec 2024
31 Dec 2023
$’000
$’000
Exploration and evaluation
expenditure
6,962
5,328
Carrying amount at beginning of
period
5,328
4,784
Additions
1,996
647
Impairment
(362)
(103)
Carrying amount at end of period
6,962
5,328
16. Trade and Other Payables
31 Dec 2024
31 Dec 2023
$’000
$’000
Trade payables
17,203
7,578
Other payables and accruals
8,930
6,116
26,133
13,694
Information about the Group’s exposure to liquidity risk is provided in
Note 26(c).
17. Provisions – Current
31 Dec 2024
31 Dec 2023
$’000
$’000
Rehabilitation provision
1,114
1,090
1,114
1,090
Movement in provisions
Carrying amount at the beginning
of the year
1,090
766
Payments charged against
provision
(172)
(97)
Transfer from non-current
provision
196
421
Carrying amount at the end of
the year
1,114
1,090
The rehabilitation provision is based on estimates for tenements
held and refers to the measures and actions required to repair land
disturbed by exploration and mining activities. The current balance is
in respect of the Kanmantoo mine tenement.
18. Leases
(i)
Amounts recognised in the statement of
financial position
31 Dec 2024
31 Dec 2023
$’000
$’000
Right-of-use assets
Plant and equipment
9,237
11,800
Closing carrying amount at
31 December
9,237
11,800
Lease liabilities
Current lease liability
4,343
4,311
Non-current lease liabilities
4,342
7,506
Closing balance at
31 December
8,685
11,817
Additions to the right-of-use assets during current year were
$7.2 million (2023: $14.0 million).
The total cash outflow for these leases in the current year was
$4.2m (31 December 2023: $0.7m).
Notes to the Consolidated Financial Statements For the year ended 31 December 2024 cont.
73
HILLGROVE RESOURCES LIMITED
2024 FINANCIAL REPORT
FINANCIAL
REPORT
SUSTAINABILITY
REPORT
ANNUAL
REPORT
18. Leases continued
(ii)
Amounts recognised in the consolidated statement of profit or loss and other comprehensive income:
31 Dec 2024
31 Dec 2023
$’000
$’000
Depreciation charge of right-of-use assets – Plant and equipment
4,558
(1,530)
Expense relating to short-term leases (included in expenses)
1,178
158
Expense relating to leases of low-value assets that are not shown
above as short-term leases (included in expenses)
27
23
Interest expense (included in interest and finance charges)
1,103
278
Expense relating to variable lease payments not included in lease liabilities
(included in expenses)
8,375
763
Contractual maturities of lease liabilities
The maturity profile of lease liabilities based on the undiscounted contractual amounts is as follows:
At 31 December
2024
Less than 1 year
$’000
1 to 2 years
$’000
Over 2 years
$’000
Total cash flows
$’000
Carrying amount
$’000
Lease liabilities
4,811
2,634
2,538
9,983
8,685
19. Employee Benefits Payable
31 Dec 2024
31 Dec 2023
$’000
$’000
Employee benefits payable – current
3,383
1,594
The current provision for employee benefits includes accrued annual leave, long service leave, and other accrued remuneration.
The entire amount of employee benefits payable of $3.4 million (2023: $1.6 million) is presented as current since the Group does not have
an unconditional right to defer settlement for any of these obligations. However, based on past utilisation, the Group does not expect all
employees to take the full amount of accrued leave or require payment within the next 12 months.
31 Dec 2024
31 Dec 2023
$’000
$’000
Leave obligations expected to settle after 12 months
1,418
482
20. Provisions – Non-Current
31 Dec 2024
31 Dec 2023
$’000
$’000
Rehabilitation provision
8,334
8,500
Movement in provisions
Carrying value at the beginning of the period
8,500
9,006
Charged/(credited) to profit or loss
Discount on unwind of rehabilitation provision
350
360
Transfer to current provisions
(196)
(421)
Reduce provision recognised
(320)
(445)
Balance at end of period
8,334
8,500
Notes to the Consolidated Financial Statements For the year ended 31 December 2024 cont.
FINANCIAL
REPORT
SUSTAINABILITY
REPORT
ANNUAL
REPORT
74
HILLGROVE RESOURCES LIMITED
2024 FINANCIAL REPORT
20. Provisions – Non-Current continued
The rehabilitation provision is based on estimates for tenements held
and refers to the measures and actions required to remediate land
disturbed by exploration and mining activities. Closing and restoration
costs include the dismantling and demolition of infrastructure and
the removal of residual materials and remediation of disturbed areas.
Closing and restoration costs are provided for in the accounting
period when the obligation arising from the related disturbance
occurs, whether this occurs during mine development or during the
production phase, based on the net present value of estimated future
costs.
The costs are estimated based on a closure plan. The cost estimates
are calculated annually during the life of the operation to reflect known
developments and are subject to formal review at regular intervals.
The amortisation or ‘unwinding’ of the discount applied in establishing
the net present value of provisions is charged to the statement of
profit or loss and shown as a financial cost.
The consolidated entity has obligations to restore land disturbed
under exploration and mining licences. The maximum obligation to
the South Australian Government in respect of the Kanmantoo copper
mine has been assessed at a value of $9.2 million and is secured by
the South Australian Government on a first ranking basis against the
assets of the consolidated entity.
Included in the rehabilitation provision is a payment of approximately
$1.7 million to the Native Vegetation Fund. With permission from
the South Australian Government, the Group has delayed the timing
of this payment and, whilst the intention is for the payment to be
made in future, it should be noted that non-payment would increase
the Group’s rehabilitation provision by approximately $1.5 million.
However, such a scenario is not expected to materialise.
21. Deferred Income
31 Dec 2024
31 Dec 2023
$’000
$’000
Current
Deferred revenue
719
-
Government grant income
639
-
1,358
-
Non-Current
Government grant income
631
2,000
Total deferred income
1,989
2,000
Deferred revenue derives from the prices allocated to second and
third revenue performance obligations, including the loading costs
and vessel charter costs required to transport the shipment to its
destination.
22. Other financial liabilities
31 Dec 2024
31 Dec 2023
$’000
$’000
Discounted net smelter
return royalty – Current
4,470
2,997
Discounted net smelter
return royalty – Non Current
11,706
4,487
16,176
7,484
During August 2022, the Group entered into a royalty funding
agreement with Freepoint Metals and Concentrates LLC (Freepoint).
Net proceeds of $5.9 million were received from Freepoint, and
in return, the group will pay Freepoint 2.5% of net smelter returns
for the first 85,000 tonnes of payable copper from the Kanmantoo
underground project, reducing to 0.5% thereafter.
In accordance with AASB 9, this arrangement is classified as a
financial liability, measured at amortised cost, using the effective
interest method. This resulted in initial recognition of a financial liability
of $5.87 million recognised in August 2022, with an effective interest
rate of 24.06%. The liability is re-measured at each reporting year
for any changes in assumption (such as copper price), however the
effective interest rate will not change. At 31 December 2024, the
liability was remeasured for a movement in the copper spot price
and forecasted royalty payments, which increased the liability by
$8.7 million.
Refer to Note 26(a) for the potential impact on the amount payable
due to copper price fluctuations.
Notes to the Consolidated Financial Statements For the year ended 31 December 2024 cont.
75
HILLGROVE RESOURCES LIMITED
2024 FINANCIAL REPORT
FINANCIAL
REPORT
SUSTAINABILITY
REPORT
ANNUAL
REPORT
23. Contributed Equity
Share capital
31 Dec 2024
31 Dec 2023
$’000
$’000
Issued and paid-up capital for 2,095,555,597 fully paid shares
(31 December 2023: 1,911,971,009)
302,711
292,947
Ordinary shares issued – movements during the period
31 Dec 2024
31 Dec 2023
31 Dec 2024
31 Dec 2023
No. of shares
$’000
Opening balance
1,911,971,009
1,174,289,057
292,947
256,088
Employee option schemes / issues
11,940,313
12,500,000
-
-
Capital raise
171,644,245
725,181,952
10,335
38,435
Less – transaction costs (net of tax)
-
-
(571)
(1,576)
Balance at end of period
2,095,555,567
1,911,971,009
302,711
292,947
Ordinary shares are classified as equity. Incremental costs directly
attributable to the issue of new shares or options are shown in equity
as a deduction, net of tax, from the proceeds.
Terms and conditions
Holders of ordinary shares are entitled to receive dividends as
declared and are entitled to one vote per share at shareholders
meetings. In the event of winding up the Company, ordinary
shareholders rank after all other shareholders and creditors and are
fully entitled to any net proceeds of liquidation.
Capital risk management
The Group’s objectives when managing capital are to safeguard its
ability to continue as a going concern, so it can provide returns for
shareholders and benefits for other stakeholders and to maintain
an optimal capital structure to reduce the cost of capital. In order
to maintain or adjust the capital structure, the Group may adjust
the amount of dividends paid to shareholders, return capital to
shareholders, issue new shares or sell assets.
24. Reserves
31 Dec 2024
31 Dec 2023
$’000
$’000
Share based payments reserve
10,046
9,084
Profit reserve
22,082
22,082
32,128
31,166
Movements:
Share based payments
reserve (i)
Opening balance
9,084
7,306
Share based compensation
expense
962
1,778
Closing balance
10,046
9,084
Profit reserve (ii)
Opening balance
22,082
22,082
Transfer of current year profit
-
-
Dividend paid
-
-
Closing balance
22,082
22,082
Nature and purpose of reserves
(i)
Share based payments reserve
The share based payments reserve is used to recognise the
fair value of:
X
X Share performance rights issued to employees
X
X Options granted to the non-executive directors
X
X Unlisted options issued to the joint lead managers for placement
and share purchase plans.
(ii)
Profit reserve
The profit reserve is used to accumulate distributable profits,
preserving the characteristics of profit by not appropriating against
prior year accumulated losses. The reserve can be used to pay
taxable dividends.
Notes to the Consolidated Financial Statements For the year ended 31 December 2024 cont.
FINANCIAL
REPORT
SUSTAINABILITY
REPORT
ANNUAL
REPORT
76
HILLGROVE RESOURCES LIMITED
2024 FINANCIAL REPORT
25. Accumulated Losses
31 Dec 2024
31 Dec 2023
$’000
$’000
At beginning of the period
(269,237)
(252,910)
Net loss (not carried forward to
profit reserve)
(24,031)
(16,327)
Accumulated losses at end of
the period
(293,268)
(269,237)
26. Financial Risk Management
The Group’s activities expose it to a variety of financial risks: market
risk, foreign exchange risk, credit risk and liquidity risk. The Group’s
overall risk management program focuses on the unpredictability of
financial markets and seeks to minimise potential adverse effects on
the financial performance of the Group. Risk management is carried
out by senior management under direction of the Board of Directors.
The Board provides principles for overall risk management, as well as
policies covering specific areas.
(a) Market Risk
(i)
Copper Pricing
The Group has exposure to copper commodity prices arising from the
royalty agreement entered with Freepoint Metals and Concentrates
LLC during August 2022 (refer Note 22). Movements in the realised
price of copper will increase/decrease the associated royalty liability.
The below table details the Group’s sensitivity to movements in the
realised copper price:
31 December 2024
Impact on current value of
royalty payable
Increase $’000
Decrease $’000
Impact of 10% increase/
decrease in copper price
1,548
(1,548)
(ii)
Foreign exchange risk
The valuation of the royalty payable to Freepoint Metals and
Concentrates will increase/decrease in line with movements in the A$/
US$ exchange rate. The sensitivity to these has been reflected in the
above market price table. Additionally, the Group has exposure to FX
changes in relation to AUD payments made for a lease charged in
USD.
Additionally, at 31 December 2024, the Group has US$ denominated
receivables of $924,628 (31 December 2023: $Nil). An increase/
decrease in AUD:USD foreign exchange rates of 10% will result in
$92k impact to net assets and pre-tax profit.
(b) Credit Risk
Credit risk is managed on a group basis. Credit risk can arise from
cash and cash equivalents, deposits with banks and financial
institutions, derivative financial instruments and receivables.
The group holds its cash with Westpac Banking Corporation
and Commonwealth Bank of Australia which are considered as
appropriate financial institutions.
The group has trade receivables of $1,487,258 (31 December 2023:
$nil). The maximum exposure to credit risk at the reporting date is the
carrying amount of the financial assets. The group applies the AASB 9
simplified approach to measuring expected credit losses which uses a
lifetime expected loss allowance for all trade receivables and contract
assets. Applying the principles of the expected credit loss model and
historical recovery rates, the consolidated entity has not recognised a
provision against trade receivables and contract assets.
Trade receivables and contract assets are written off when there is
no reasonable expectation of recovery. Indicators that there is no
reasonable expectation of recovery include, amongst others, the
failure of a debtor to engage in a repayment plan with the group, and
a failure to make contractual payments.
GST refunds are receivable from a government agency and are
deemed to have no significant credit risk.
For banks, financial institutions and third party debtors, management
assesses the credit quality of the counterparty, considering its
financial position, experience and other relevant factors.
(c) Liquidity Risk
Prudent liquidity risk management implies maintaining sufficient
cash and marketable securities, the availability of funding through an
adequate amount of committed credit facilities and the ability to close
out market positions. Liquidity risk is managed on a group basis.
The group manages liquidity risk by continuously monitoring forecast
and actual cash flows and matching the maturity profiles of financial
assets and liabilities.
The group monitors its cash flow on a regular basis to ensure
adequate funds are in place to maintain its payment obligations when
they fall due. The group and the parent entity had no drawn borrowing
facilities at the reporting date.
Notes to the Consolidated Financial Statements For the year ended 31 December 2024 cont.
77
HILLGROVE RESOURCES LIMITED
2024 FINANCIAL REPORT
FINANCIAL
REPORT
SUSTAINABILITY
REPORT
ANNUAL
REPORT
26. Financial Risk Management continued
(c) Liquidity risk continued
Maturities of financial liabilities
The tables below analyse the group’s financial liabilities into relevant maturity groupings based on the remaining period at the reporting date
to the contractual maturity date. The amounts disclosed in the table are the contractual undiscounted cash flows and includes future interest
on borrowings.
31 December 2024
$’000
Less than
1 year
1 to 2
year(s)
2 to 3
years
3 to 4
years
4 to 5
years
More than
5 years
Total
cash flows
Carrying
amount
Trade and other payables
26,133
-
-
-
-
-
26,133
26,133
Financial liabilities
4,470
4,829
5,327
5,220
4,606
4,604
29,056
16,176
Total
30,603
4,829
5,327
5,220
4,606
4,604
55,189
42,309
31 December 2023
$’000
Less than
1 year
1 to 2
year(s)
2 to 3
years
3 to 4
years
4 to 5
years
More than
5 years
Total
cash flows
Carrying
amount
Trade and other payables
13,694
-
-
-
-
-
13,694
13,694
Financial liabilities
2,997
3,806
3,600
-
-
-
10,404
7,484
Total
16,691
3,806
3,600
-
-
-
24,098
21,178
27. Subsidiaries
The consolidated financial statements incorporate the assets and liabilities of all subsidiaries of Hillgrove Resources Limited (the “parent entity”)
as at 31 December 2024 and the results of all subsidiaries for the period then ended. Hillgrove Resources Limited and its subsidiaries together
are referred to in this financial report as the Group. Subsidiaries are all entities controlled by the Group. Control is achieved when the Group has
power over the investee, is exposed, or has rights, to variable returns from its involvement with the investee and has the ability to use its power
to affect its returns.
The purchase method of accounting is used to account for the acquisition of subsidiaries by the Group. Cost is measured as the fair value of
the assets given, shares issued, or liabilities incurred or assumed at the date of exchange. Transaction costs are expensed as incurred, except
if related to the issue of debt or equity securities. Consolidation of a subsidiary begins when the Group obtains control over the subsidiary and
ceases when the Group loses control of the subsidiary. Profit or loss and each component of other comprehensive income are attributed to
owners of Hillgrove Resources Limited and to the non-controlling interests where applicable.
Intercompany transactions, balances and unrealised gains on transactions between Group companies are eliminated. Unrealised losses are
also eliminated unless the transaction provides evidence of the impairment of the asset transferred. Accounting policies of subsidiaries have
been changed where necessary to ensure consistency with the policies adopted by the Group.
The proportion of ownership interest is equal to the proportion of voting power held. The consolidated financial statements incorporate the
assets, liabilities and results of the following subsidiaries;
Name of controlled entity
Country of
incorporation
Class of share
Equity holding
31 Dec 2024 (%)
Equity holding
31 Dec 2023 (%)
Hillgrove Copper Pty Ltd
Australia
Ordinary
100
100
Hillgrove Copper Holdings Pty Ltd
Australia
Ordinary
100
100
Hillgrove Exploration Pty Ltd
Australia
Ordinary
100
100
Hillgrove Mining Pty Ltd
Australia
Ordinary
100
100
Hillgrove Operations Pty Ltd
Australia
Ordinary
100
100
Hillgrove Wheal Ellen Pty Ltd
Australia
Ordinary
100
100
Kanmantoo Properties Pty Ltd
Australia
Ordinary
100
100
Mt Torrens Properties Pty Ltd
Australia
Ordinary
100
100
SA Mining Resources Pty Ltd
Australia
Ordinary
100
100
Hillgrove Indonesia Pty Ltd
Australia
Ordinary
100
100
PT Hillgrove Indonesia
Indonesia
Ordinary
100
100
There were no transactions with non-controlling interests during the period.
Notes to the Consolidated Financial Statements For the year ended 31 December 2024 cont.
FINANCIAL
REPORT
SUSTAINABILITY
REPORT
ANNUAL
REPORT
78
HILLGROVE RESOURCES LIMITED
2024 FINANCIAL REPORT
28. Commitments
(a)
Non-cancellable commitments
Future commitments not provided for in the financial statements and
payable:
31 Dec 2024
31 Dec 2023
$’000
$’000
Within one year
76
16
One to five years
-
-
76
16
(b)
Exploration expenditure commitments
To maintain current rights of tenure to exploration tenements, the
Group is required to perform exploration work to meet the minimum
expenditure requirements under the various exploration licences
which are held. These obligations are expected to be fulfilled in the
normal course of operations. Mining interests may be relinquished
or joint ventured to reduce this amount. The SA State Government
has the authority to defer, waive or amend the minimum expenditure
requirements. Eligible exploration expenditure includes an appropriate
allocation of overhead costs.
31 Dec 2024
31 Dec 2023
$’000
$’000
Within one year
45
487
One to five years
359
677
404
1,164
(c)
Capital commitments
At 31 December 2024, there were no contracted capital
commitments (31 December 2023: Nil).
29. Notes to the Consolidated
Statement of Cash Flows
(a)
Reconciliation of cash
For the purposes of the consolidated statement of cash flows, cash
includes cash on hand and at bank and short term deposits at call.
Cash as at the end of the financial year as shown in the consolidated
statement of cash flows is reconciled to the related items in the
consolidated statement of financial position as set out in Note 11.
(b)
Reconciliation of operating profit after income tax
to net cash provided by operating activities
31 Dec 2024
31 Dec 2023
$’000
$’000
Operating profit/(loss) after
income tax
(24,031)
(16,327)
Add/(less) items classified as
investing/financing activities
Gain on sale of fixed assets
(167)
(50)
Net interest expense
2,783
284
Finance lease payments
(5,719)
(664)
Tax expense on capital raise
costs
(227)
(675)
Add/(less) non-cash items
Depreciation and amortisation
31,763
746
Movement in inventory stockpile
valuation (non-cash costs)
210
-
Asset impairments
380
103
Employee share options
752
1,036
Discount on unwind of
rehabilitation provision
350
360
Discount on unwind of royalty
financial liability
1,572
1,692
Revaluation of royalty financial
liability
9,600
(1,403)
Unrealised foreign exchange gain
on lease liability
(3)
(175)
Rehabilitation adjustment
(262)
(114)
Movement in Comet Vale
rehabilitation provision
-
(286)
Changes in operating
assets and liabilities
Increase in receivables,
prepayments and inventories
(6,446)
(1,820)
Increase in right-of-use assets
(46)
(13,330)
Increase in trade creditors and
accruals
12,439
12,992
Decrease in deferred income
(11)
-
(Decrease) / increase in lease
liabilities
(3,132)
11,817
Decrease in other operating
liabilities
(360)
(4,473)
Increase in provisions and
employee benefits
1,558
748
Net cash from/(used) by
operating activities
21,003
(9,539)
Notes to the Consolidated Financial Statements For the year ended 31 December 2024 cont.
79
HILLGROVE RESOURCES LIMITED
2024 FINANCIAL REPORT
FINANCIAL
REPORT
SUSTAINABILITY
REPORT
ANNUAL
REPORT
29. Notes to the Consolidated Statement of Cash Flows continued
(c)
Net debt reconciliation
This section sets out an analysis of net debt and the movements in net debt for each of the periods presented.
31 Dec 2024
31 Dec 2023
$’000
$’000
Cash and cash equivalents
3,260
10,240
Financial liabilities – repayable within one year
(8,813)
(7,308)
Financial liabilities – repayable after one year
(16,048)
(11,993)
Net debt
(21,601)
(9,061)
Reconciliation of movement of liabilities to cash flows arising from financing activities
Other assets
Liabilities from financing activities
Cash & bank
Liquid
investments
Financial liabilities
due within 1 year
Financial liabilities
due after 1 year
Total
Net debt as at 1 January 2023
5,305
-
-
(7,195)
(1,890)
Cash flows
4,935
-
-
-
4,935
Other non-cash movements
-
-
(7,308)
(4,798)
(12,106)
Net funds/(debt) as at 31 December 2023
10,240
-
(7,308)
(11,993)
(9,061)
Cash flows
(6,980)
-
-
-
(6,980)
Other non-cash movements
-
-
(1,505)
(4,055)
(5,560)
Net funds/(debt) as at 31 December 2024
3,260
-
(8,813)
(16,048)
(21,601)
Non-cash movements represent accrued interest, repayment timing movements between current and non-current and revaluations.
30. Key Management Personnel Disclosures
Key management personnel compensation
31 Dec 2024
31 Dec 2023
$
$
Short-term employee benefits
1,166,949
867,112
Post-employment benefits
104,019
96,704
Cash bonus (accrued)
-
201,325
Share based payments
488,094
444,317
1,759,062
1,609,458
Further detail regarding key management personnel compensation can be found in the Remuneration Report.
Notes to the Consolidated Financial Statements For the year ended 31 December 2024 cont.
FINANCIAL
REPORT
SUSTAINABILITY
REPORT
ANNUAL
REPORT
80
HILLGROVE RESOURCES LIMITED
2024 FINANCIAL REPORT
31. Related Party Transactions
(a) Parent entities
The parent entity within the Group is Hillgrove Resources Limited.
(b) Subsidiaries
Interests in subsidiaries are set out in Note 27.
(c) Key management personnel
Disclosures relating to key management personnel are set out in
Note 30.
(d) Related parties
Loans to controlled entities are eliminated on consolidation.
Hillgrove Copper Pty Ltd is the banker for the Group and re-allocates
via loan account all costs that relate to the Group. Some assets
and liabilities previously recognised in the parent Company, mainly
consisting of property, plant, equipment and exploration related
assets, have been transferred to the controlled entities via loan
account. All these transactions were recorded at carrying value.
The Group entered into a standby debt facility agreement in October
2024 with Freepoint Metals and Concentrates LLC, whom are
substantial shareholders of Hillgrove Resources Limited. Material
terms of this standby debt facility are as follows:
1. Facility – Freepoint will provide Hillgrove with a A$10 million
stand-by facility in two A$5 million tranches, subject to conditions
and to be repaid by 6 instalments commencing 7 months after
first draw down with final instalment payable 12 months after first
draw down.
2. Security – the Facility is secured by a new comprehensive
security package over Hillgrove’s assets. The security documents
expressly provide that:
i.
the security is limited to the funds due under the Facility and
existing financial accommodation with Freepoint (i.e. hedging);
ii. the security will be discharged when the funds due under
the Facility and existing financial accommodation have been
satisfied in full;
iii. in the event the security is enforced, the assets can only be
disposed of to Freepoint or an associate of Freepoint if the
disposal is first approved by Hillgrove’s security holders under
ASX Listing Rule 10.1; and
iv. otherwise, if the holder of the security exercises, or appoints
a receiver, receiver and manager or analogous person to
exercise, any power of sale under the security, the assets
must be sold to an unrelated third party on arm’s length
commercial terms and the net proceeds of sale distributed to
Freepoint in accordance with their legal entitlements.
3. Conditions – loan availability and funding under the Facility will
be subject to customary conditions precedent for transactions of
this nature, including registration of the security documents and
obtaining a waiver from the ASX from the requirement to obtain
securityholder approval under Listing Rule 10.1 with respect to
the grant of securities for the purposes of the Facility.
Hillgrove has applied for and has been granted a waiver by the
ASX from the requirement to obtain securityholder approval under
Listing Rule 10.1 subject to certain conditions including any
variation to the terms of the Facility or the Security which:
X
X
advantages Freepoint in a material respect;
X
X
disadvantages the Company in a material respect; or
X
X
is inconsistent with the terms of the waiver,
X
X
must be subject to security holder approval under Listing
Rule 10.1; and
X
X
for each year while they remain on foot, a summary of the
material terms of the Facility and the Security is included in
the related party disclosures in the Company’s audited annual
accounts.
4. Operational Covenants – the Facility contains standard
operational covenants on providing securities, asset dealings, and
corporate activities.
5. Price Participation – in addition to typical commitment fees and
commercial interest rates, if following draw down on the Facility,
the copper price is more than US$8,800/t in respect of any
concentrate sold under the existing offtake agreement between
the parties, then Freepoint is entitled to 10% of the additional
value above the strike price until the earlier of:
i.
end of mine life; or
ii. 15,000t of payable copper metal has been supplied by
Hillgrove to Freepoint under the offtake agreement.
The Price Participation is capped at an amount equal to 4.99% of
the equity interests as set out in the Company’s latest accounts.
6. Conversion Option – if draw down under the Facility has
occurred, Freepoint has the option to convert some or all of
outstanding loan amount under the Facility into ordinary Hillgrove
shares: the shares will be issued at a price based on a 10%
discount to the VWAP over the 5 trading days immediately prior
to Freepoint issuing a notice to convert. The proposed conversion
and issue of shares must not result in:
i.
greater than 3% increase in Freepoint’s voting power in
Hillgrove, within a 6 month period for a maximum of 2 periods
(i.e. 2 x 3% over 12 months); and
ii. Freepoint’s total voting power in Hillgrove exceeding 30%.
32. Events After the Reporting Period
There were no events subsequent to balance date.
Notes to the Consolidated Financial Statements For the year ended 31 December 2024 cont.
81
HILLGROVE RESOURCES LIMITED
2024 FINANCIAL REPORT
FINANCIAL
REPORT
SUSTAINABILITY
REPORT
ANNUAL
REPORT
33. Contingent Liabilities
Guarantees
31 Dec 2024
31 Dec 2023
$’000
$’000
Electranet performance bond to support the build, own, operate and maintain agreement
for installation of transmission infrastructure at the Kanmantoo site
600
388
Security bonds on tenements
5
5
605
393
The consolidated entity had no other contingent liabilities at 31 December 2024.
34. Share-Based Payments
(a)
Movements in options and performance rights during the year
31 December 2024
31 December 2023
Number of options and
performance rights
Weighted average
exercise price ($)
Number of options and
performance rights
Weighted average
exercise price ($)
Balance at beginning of year
53,802,800
0.03
58,500,000
0.03
Granted – employees
9,657,768
-
15,000,000
-
Granted – nonexecutive directors
7,000,000
0.12
-
-
Forfeited during the year
(10,631,352)
-
(7,197,200)
-
Exercised during the year
(11,940,313)
-
(12,500,000)
-
Expired during the year
-
-
-
-
Balance at end of year
47,888,903
0.05
53,802,800
0.03
Exercisable at end of year
-
-
-
-
At the end of the year there were 47,888,903 performance rights outstanding and the weighted average remaining contractual life at the end of
the period was 1.31 years (31 December 2023: 2.15 years).
(b)
Summary of options and performance rights outstanding
31 December 2024
31 December 2023
Number of options and
performance rights
Last exercise date
Number of options and
performance rights
Last exercise date
2021 OPRP (Tranche 2)
-
30 March 2025
13,802,800
30 March 2025
2022 OPRP (Tranche 3)
9,731,135
30 March 2026
11,000,000
30 March 2026
2023 OPRP (Tranche 1)
7,500,000
30 March 2027
15,000,000
30 March 2027
2024 OPRP (Tranche 1)
9,657,768
30 March 2028
-
-
Director Options T1 (2021)
8,000,000
14 May 2025
8,000,000
14 May 2025
Director Options T2 (2021)
6,000,000
14 May 2026
6,000,000
14 May 2026
Director Options T1 (2024)
4,000,000
14 May 2025
-
-
Director Options T2 (2024)
3,000,000
14 May 2026
-
-
TOTAL
47,888,903
53,802,800
Note that Mr R Fulker is excluded from the above figures. Refer to section 4.4.3 of the Remuneration Report for further details.
Notes to the Consolidated Financial Statements For the year ended 31 December 2024 cont.
FINANCIAL
REPORT
SUSTAINABILITY
REPORT
ANNUAL
REPORT
82
HILLGROVE RESOURCES LIMITED
2024 FINANCIAL REPORT
34. Share-Based Payments continued
(b)
Summary of options and performance rights outstanding continued
Further information for each of the outstanding OPRP performance rights are as follows:
2021 OPRP
2022 OPRP
2023 OPRP
2024 OPRP
Consideration
-
-
-
-
Exercise price
-
-
-
-
Method of settlement
Equity
Equity
Equity
Equity
Performance hurdles
- Share price target (cents)
8.0
10.0
12.0
14.0
- Price calculation methodology
10 day VWAP
10 day VWAP
10 day VWAP
10 day VWAP
- Start of testing date
1 March 2024
1 March 2024
1 March 2025
1 March 2026
- First exercise date
1 March 2024
1 March 2025
1 March 2026
1 March 2027
- Last exercise date
30 March 2025
30 March 2026
30 March 2027
1 March 2028
In addition, further information for each of the outstanding director options are as follows:
T1 (2021)
T2 (2021)
T1 (2024)
T2 (2024)
Consideration
-
-
-
-
Exercise price
$0.10/share
$0.15/share
$0.10/share
$0.15/share
Method of settlement
Equity
Equity
Equity
Equity
Grant date
14 May 2021
14 May 2021
3 June 2024
3 June 2024
First exercise date
14 May 2024
14 May 2024
3 June 2024
3 June 2024
Last exercise date
14 May 2025
14 May 2026
14 May 2025
14 May 2026
(c)
Additional information on options and performance rights issued during the year
2024 OPRP
Grant date
2 July 2024
Valuation date
31 May 2024
Consideration
-
Exercise price
-
Number of rights granted
11,025,000
Performance hurdles
- Share price target - cents
14.0
- Price calculation methodology
10 day VWAP
- Start of testing date
1 March 2026
- First exercise date
1 March 2027
- Last exercise date
30 March 2028
Valuation
- Performed by
External advisers
- Methodology
Binomial
- Share price volatility
65%
- Expected dividend yield
0%
- Risk free interest rate
4.10%
- Valuation per right - cents
6.70
Notes to the Consolidated Financial Statements For the year ended 31 December 2024 cont.
83
HILLGROVE RESOURCES LIMITED
2024 FINANCIAL REPORT
FINANCIAL
REPORT
SUSTAINABILITY
REPORT
ANNUAL
REPORT
34. Share-Based Payments continued
(d)
Movements in options during the year – capital raise lead managers
31 December 2024
31 December 2023
Number of options
Weighted average
exercise price ($)
Number of options
Weighted average
exercise price ($)
Balance at beginning of year
55,000,000
0.0790
20,000,000
0.0780
Granted
10,000,000
0.0900
35,000,000
0.0795
Forfeited during the year
-
-
-
-
Exercised during the year
(2,000,000)
-
-
-
Expired during the year
(18,000,000)
-
-
-
Balance at end of year
45,000,000
0.0807
55,000,000
0.0790
At the end of the year there were 45,000,000 options outstanding and the weighted average remaining contractual life at the end of the period
was 1.51 years (31 December 2023: 1.75 years).
(e)
Expenses arising from share-based payment transactions
Total expenses arising from share-based payment transactions recognised during the period as part of employee benefit expense were
as follows:
31 Dec 2024
31 Dec 2023
$’000
$’000
Performance rights issued under the OPRP:
Equity based
752
1,036
Cash based
-
-
752
1,036
During the period, the expensed share based payment amounts were calculated based on an adjusted form of the Black Scholes Model,
third party valuation using a binomial option pricing model, or share price on the date of issue against the probability that they will vest.
Notes to the Consolidated Financial Statements For the year ended 31 December 2024 cont.
FINANCIAL
REPORT
SUSTAINABILITY
REPORT
ANNUAL
REPORT
84
HILLGROVE RESOURCES LIMITED
2024 FINANCIAL REPORT
35. Parent Entity Information
The financial information for the parent entity, Hillgrove Resources Limited, has been prepared on the same basis as the consolidated financial
statements, except as set out below.
Investments in subsidiaries are accounted for at cost in the financial statements of Hillgrove Resources Limited. Dividends received from
associates are recognised in the parent entity’s profit or loss, rather than being deducted from the carrying amount of these investments.
Set out below is the supplementary information about the parent entity.
Parent
31 Dec 2024
31 Dec 2023
$’000
$’000
Profit / (loss) after income tax
(24,031)
(14,790)
Total comprehensive income
(24,031)
(14,790)
Statement of financial position
Total current assets
530
10,308
Total assets
42,266
55,688
Total current liabilities
695
812
Total liabilities
695
812
Net assets
41,571
54,876
Shareholder’s equity
Contributed equity
302,711
292,947
Reserves
16,912
15,950
Accumulated losses
(278,052)
(254,021)
Total equity
41,571
54,876
Material Accounting Policies
The accounting policies of the parent entity are consistent with those of the consolidated entity, disclosed throughout the report and notes.
Investments in subsidiaries are accounted for at cost, less any impairment.
Notes to the Consolidated Financial Statements For the year ended 31 December 2024 cont.
85
HILLGROVE RESOURCES LIMITED
2024 FINANCIAL REPORT
FINANCIAL
REPORT
SUSTAINABILITY
REPORT
ANNUAL
REPORT
Name of controlled entity (1)
Trustee, partner or
participant in JV
% of
share capital
Place of
incorporation
Australian resident
or foreign resident
Foreign jurisdiction
of foreign residents
Hillgrove Resources Limited
-
n/a
Australia
Australian
N/A
Hillgrove Copper Pty Ltd
-
100
Australia
Australian
N/A
Hillgrove Copper Holdings Pty Ltd
-
100
Australia
Australian
N/A
Hillgrove Exploration Pty Ltd
-
100
Australia
Australian
N/A
Hillgrove Mining Pty Ltd
-
100
Australia
Australian
N/A
Hillgrove Operations Pty Ltd
-
100
Australia
Australian
N/A
Hillgrove Wheal Ellen Pty Ltd
-
100
Australia
Australian
N/A
Kanmantoo Properties Pty Ltd
-
100
Australia
Australian
N/A
Mt Torrens Properties Pty Ltd
-
100
Australia
Australian
N/A
SA Mining Resources Pty Ltd
-
100
Australia
Australian
N/A
Hillgrove Indonesia Pty Ltd
-
100
Australia
Australian
N/A
PT Hillgrove Indonesia
-
100
Indonesia
Foreign
Indonesian
(1) All entities are body corporate entities
Consolidated Entity Disclosure Statement as at 31 December 2024
FINANCIAL
REPORT
SUSTAINABILITY
REPORT
ANNUAL
REPORT
86
HILLGROVE RESOURCES LIMITED
2024 FINANCIAL REPORT
Directors’ Declaration
In the Directors’ opinion:
(a) the financial statements and notes set out on pages 59 to 84 are in accordance with the Corporations Act 2001,
including:
(i) complying with Accounting Standards, the Corporations Regulations 2001 and other mandatory professional
reporting requirements; and
(ii) giving a true and fair view of the consolidated entity’s financial position as at 31 December 2024 and of its
performance for the financial year ended on that date; and
(b) there are reasonable grounds to believe that the Company will be able to pay its debts as and when they become
due and payable, and
(c) the consolidated entity disclosure statement on page 85 is true and correct.
Note 1(a) confirms that the financial statements also comply with International Financial Reporting Standards as issued by
the International Accounting Standards Board.
The Directors have been given the declarations by the Chief Executive Officer and Chief Financial Officer required by section
295A of the Corporations Act 2001.
This declaration is made in accordance with a resolution of the Directors.
Dated at Adelaide this 28th day of February 2025
Mr Derek Carter
Mr Robert Fulker
Chair
Managing Director
87
HILLGROVE RESOURCES LIMITED
2024 FINANCIAL REPORT
FINANCIAL
REPORT
SUSTAINABILITY
REPORT
ANNUAL
REPORT
Independent Auditor’s Report to the members of Hillgrove Resources Limited
PricewaterhouseCoopers, ABN 52 780 433 757
Level 11, 70 Franklin Street, ADELAIDE SA 5000, GPO Box 418, ADELAIDE SA 5001
T: +61 8 8218 7000, F: +61 8 8218 7999, www.pwc.com.au
Liability limited by a scheme approved under Professional Standards Legislation.
Independent auditor’s report
To the members of Hillgrove Resources Limited
Report on the audit of the financial report
Our opinion
In our opinion:
The accompanying financial report of Hillgrove Resources Limited (the Company) and its controlled
entities (together the Group) is in accordance with the Corporations Act 2001, including:
(a)
giving a true and fair view of the Group's financial position as at 31 December 2024 and of its
financial performance for the year then ended
(b)
complying with Australian Accounting Standards and the Corporations Regulations 2001.
What we have audited
The financial report comprises:
•
the consolidated statement of financial position as at 31 December 2024
•
the consolidated statement of changes in equity for the year then ended
•
the consolidated statement of cash flows for the year then ended
•
the consolidated statement of profit or loss and other comprehensive income for the year then
ended
•
the notes to the consolidated financial statements, including material accounting policy
information and other explanatory information
•
the consolidated entity disclosure statement as at 31 December 2024
•
the directors’ declaration.
Basis for opinion
We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under
those standards are further described in the Auditor’s responsibilities for the audit of the financial
report section of our report.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis
for our opinion.
Independence
We are independent of the Group in accordance with the auditor independence requirements of the
Corporations Act 2001 and the ethical requirements of the Accounting Professional & Ethical
Standards Board’s APES 110 Code of Ethics for Professional Accountants (including Independence
Standards) (the Code) that are relevant to our audit of the financial report in Australia. We have also
fulfilled our other ethical responsibilities in accordance with the Code.
FINANCIAL
REPORT
SUSTAINABILITY
REPORT
ANNUAL
REPORT
88
HILLGROVE RESOURCES LIMITED
2024 FINANCIAL REPORT
Independent Auditor’s Report to the members of Hillgrove Resources Limited continued
Independent auditor’s report - Hillgrove Resources Limited (continued)
Material uncertainty related to going concern
We draw attention to Note 1 in the financial report, which indicates that as at 31 December 2024 the
Group’s current liabilities exceeded its current assets by $26.5 million and is dependent on achieving
planned levels of production through the Kanmantoo copper mine. This condition, along with other
matters set forth in Note 1, indicate that a material uncertainty exists that may cast significant doubt on
the Group’s ability to continue as a going concern. Our opinion is not modified in respect of this matter.
Our audit approach
An audit is designed to provide reasonable assurance about whether the financial report is free from
material misstatement. Misstatements may arise due to fraud or error. They are considered material if
individually or in aggregate, they could reasonably be expected to influence the economic decisions of
users taken on the basis of the financial report.
We tailored the scope of our audit to ensure that we performed enough work to be able to give an
opinion on the financial report as a whole, taking into account the geographic and management
structure of the Group, its accounting processes and controls and the industry in which it operates.
Audit scope
Key audit matters
•
Our audit also focused on where the Group made
subjective judgements; for example, significant
accounting estimates involving assumptions and
inherently uncertain future events.
•
In establishing the overall approach to the audit of
the Group, we determined the type of work that
needed to be performed by us, as the group
auditor.
•
Amongst other relevant topics, we communicated
the following key audit matters to the Audit and
Risk Committee:
−
Mine development expenditure
−
Revaluation of royalty financial liability
•
These are further described in the Key audit
matters section of our report.
Key audit matters
Key audit matters are those matters that, in our professional judgement, were of most significance in
our audit of the financial report for the current period. The key audit matters were addressed in the
context of our audit of the financial report as a whole, and in forming our opinion thereon, and we do
not provide a separate opinion on these matters. Further, any commentary on the outcomes of a
particular audit procedure is made in that context.
In addition to the matter described in the Material uncertainty related to going concern section, we
have determined the matters described below to be the key audit matters to be communicated in our
report.
89
HILLGROVE RESOURCES LIMITED
2024 FINANCIAL REPORT
FINANCIAL
REPORT
SUSTAINABILITY
REPORT
ANNUAL
REPORT
Independent Auditor’s Report to the members of Hillgrove Resources Limited continued
Independent auditor’s report - Hillgrove Resources Limited (continued)
Key audit matter
How our audit addressed the key audit matter
Mine development expenditure
(Refer to note 14)
We considered the additions during the year in mine
development expenditure a key audit matter given it is
a financially significant balance.
We performed the following procedures, amongst
others:
•
Considered the latest available information
regarding the project through inquiries of
management and the directors, and inspection of
relevant press releases;
•
For a sample of additions to mine development
expenditure, we:
o
Assessed the appropriateness of the
additions to the mine development in
accordance with the requirements of
Australian Accounting Standards; and
o
Tested the accuracy of the additions to
mine development expenditure by
comparing the amounts capitalised to
invoices or other relevant supporting
documents.
•
Evaluated the reasonableness of the disclosures
against the requirements of Australian
Accounting Standards.
Revaluation of royalty financial liability
(Refer to note 22)
In August 2022, the Group entered into a royalty
funding agreement with Freepoint Metals and
Concentrates LLC (Freepoint).
Any fluctuations arising from re-estimating the cash
flows (e.g. price of copper, Life of Mine assumptions)
would be recognised in the statement of profit or loss
within the relevant reporting period.
We considered the revaluation of the royalty financial
liability a key audit matter given it is a financially
significant balance and there is a level of judgement
involved in assessing the key assumptions relevant to
the revaluation of the royalty financial liability.
We performed the following procedures, amongst
others:
•
Assessed the executed royalty agreement to verify
the accurate interpretation and application of
certain key clauses, such as the royalty rates,
thresholds for payable copper, and the reduction in
percentage after certain production levels;
•
Tested the mathematical accuracy of the
calculation of the financial liability and the
associated finance cost by reperforming the
calculation;
•
Evaluated the measurement of the liability,
scrutinizing management's estimates and
judgments regarding future cash flows, including
copper price forecasts and Life of Mine
assumptions.
•
Evaluated the reasonableness of disclosures
against the requirements of Australian Accounting
Standards.
FINANCIAL
REPORT
SUSTAINABILITY
REPORT
ANNUAL
REPORT
90
HILLGROVE RESOURCES LIMITED
2024 FINANCIAL REPORT
Independent Auditor’s Report to the members of Hillgrove Resources Limited continued
Independent auditor’s report - Hillgrove Resources Limited (continued)
Other information
The directors are responsible for the other information. The other information comprises the
information included in the annual report for the year ended 31 December 2024, but does not include
the financial report and our auditor’s report thereon. Prior to the date of this auditor's report, the other
information we obtained included the director's report. We expect the remaining other information to
be made available to us after the date of this auditor's report.
Our opinion on the financial report does not cover the other information and we do not and will not
express an opinion or any form of assurance conclusion thereon through our opinion on the financial
report. We have issued a separate opinion on the remuneration report.
In connection with our audit of the financial report, our responsibility is to read the other information
and, in doing so, consider whether the other information is materially inconsistent with the financial
report or our knowledge obtained in the audit, or otherwise appears to be materially misstated.
If, based on the work we have performed on the other information that we obtained prior to the date of
this auditor’s report, we conclude that there is a material misstatement of this other information, we are
required to report that fact. We have nothing to report in this regard.
When we read the other information not yet received, if we conclude that there is a material
misstatement therein, we are required to communicate the matter to the directors and use our
professional judgement to determine the appropriate action to take.
Responsibilities of the directors for the financial report
The directors of the Company are responsible for the preparation of the financial report in accordance
with Australian Accounting Standards and the Corporations Act 2001, including giving a true and fair
view, and for such internal control as the directors determine is necessary to enable the preparation of
the financial report that is free from material misstatement, whether due to fraud or error.
In preparing the financial report, the directors are responsible for assessing the ability of the Group to
continue as a going concern, disclosing, as applicable, matters related to going concern and using the
going concern basis of accounting unless the directors either intend to liquidate the Group or to cease
operations, or have no realistic alternative but to do so.
Auditor’s responsibilities for the audit of the financial report
Our objectives are to obtain reasonable assurance about whether the financial report as a whole is
free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that
includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that
an audit conducted in accordance with the Australian Auditing Standards will always detect a material
misstatement when it exists. Misstatements can arise from fraud or error and are considered material
if, individually or in the aggregate, they could reasonably be expected to influence the economic
decisions of users taken on the basis of the financial report.
A further description of our responsibilities for the audit of the financial report is located at the Auditing
and Assurance Standards Board website at: https://auasb.gov.au/media/bwvjcgre/ar1_2024.pdf. This
description forms part of our auditor's report.
91
HILLGROVE RESOURCES LIMITED
2024 FINANCIAL REPORT
FINANCIAL
REPORT
SUSTAINABILITY
REPORT
ANNUAL
REPORT
Independent Auditor’s Report to the members of Hillgrove Resources Limited continued
Independent auditor’s report - Hillgrove Resources Limited (continued)
Report on the remuneration report
Our opinion on the remuneration report
We have audited the remuneration report included in the directors’ report for the year ended 31
December 2024.
In our opinion, the remuneration report of Hillgrove Resources Limited for the year ended 31
December 2024 complies with section 300A of the Corporations Act 2001.
Responsibilities
The directors of the Company are responsible for the preparation and presentation of the
remuneration report in accordance with section 300A of the Corporations Act 2001. Our responsibility
is to express an opinion on the remuneration report, based on our audit conducted in accordance with
Australian Auditing Standards.
PricewaterhouseCoopers
Julian McCarthy
Partner
Adelaide
28 February 2025
FINANCIAL
REPORT
SUSTAINABILITY
REPORT
ANNUAL
REPORT
92
HILLGROVE RESOURCES LIMITED
2024 FINANCIAL REPORT
Shareholder Information for Listed Public Companies
The following additional information is required by the Australian Securities Exchange Limited
in respect of listed public companies only.
As at the reporting date the most recent Shareholder information available for disclosure is
as follows:
(a) Voting rights and classes of equity securities
As at 6 March 2025, the Company has 2,095,555,567 listed fully paid ordinary shares. Each
fully paid share carries on a poll one vote.
The company also has 43,525,000 unquoted performance rights and 66,000,000 options on
issue which do not carry voting rights.
(b) Unmarketable parcels
The number of shareholders holding less than a marketable parcel of ordinary shares was
2,279 as at 6 March 2025.
(c) Distribution schedule of Fully Paid Ordinary Shares
as at 6 March 2025
Size of holding
Number of shareholders
1 - 1,000
412
1,001 - 5,000
937
5,001 - 10,000
685
10,001 - 100,000
2,578
100,001 and over
1,491
6,103
(d) Securities exchange listing
Quotation has been granted for all the ordinary shares of the Company on all Member
Exchanges of the Australian Securities Exchange Limited. The ASX code is HGO.
(e) Company Secretary
Mr Joe Sutanto and Mr Jake van der Hoek are Joint Company Secretaries.
(f) On-market buy-back
There is no current on-market buy-back.
(g) Substantial shareholders as at 6 March 2025
An extract of the Company’s register of Substantial Shareholders (who hold 5.0% or more of
the issued capital) in accordance with Form 604 Notices is set out below:
Name
Issued capital
Freepoint Metals and Concentrates
19.98%
Ariadne Australia Limited
10.3%
93
HILLGROVE RESOURCES LIMITED
2024 FINANCIAL REPORT
FINANCIAL
REPORT
SUSTAINABILITY
REPORT
ANNUAL
REPORT
Twenty largest listed shareholders
The twenty largest shareholders hold 50.0% of the total ordinary shares issued. The 20 largest
shareholdings as at 6 March 2025 are listed below:
Shareholder
No. of ordinary
shares held
% of issued
shares
1
Bell Potter Nominees Ltd
418,289,385
19.96%
2
Portfolio Services Pty Ltd
69,812,355
3.33%
3
Citicorp Nominees Pty Limited
65,211,464
3.11%
4
Mr Raymond Edward Munro &
Mrs Susan Roberta Munro
61,660,000
2.94%
5
Portfolio Services Pty Ltd
42,337,067
2.02%
6
UBS Nominees Pty Ltd
39,004,638
1.86%
7
Portfolio Services Pty Ltd
37,735,850
1.80%
8
BNP Paribas Noms Pty Ltd
34,079,388
1.63%
9
Portfolio Services Pty Ltd
30,961,163
1.48%
10
J P Morgan Nominees Australia Pty Limited
21,622,959
1.03%
11
Proco Pty Ltd
20,350,000
0.97%
12
HSBC Custody Nominees (Australia) Limited
19,863,466
0.95%
13
Mr Malcolm Neil Nichols &
Mr Andrew William Constantine
18,178,115
0.87%
14
Portfolio Services Pty Ltd
17,546,894
0.84%
15
Mr Vincent Patrick Gauci &
Mrs Evelyn Leonie Gauci
17,500,000
0.84%
16
Portfolio Services Pty Ltd
16,742,196
0.80%
17
Mrs Rebecca Claire Wallace
12,263,223
0.59%
18
Red 32 Pty Ltd
11,678,888
0.56%
19
Mr Ralph Nelson & Mrs Anne Nelson
11,000,000
0.53%
20
Horrie Pty Ltd
11,000,000
0.53%
976,837,051
46.62%
(h) Interests in Mining Tenements as at
31 December 2024
Tenement
Location
Percentage
ML 6345
Kanmantoo, South Australia
100%
ML 6436
Kanmantoo, South Australia
100%
EML 6340
Kanmantoo, South Australia
100%
EL 6526
Kanmantoo, South Australia
100%
EL 6174
Coomandook, South Australia
100%
EL 6175
Coonalpyn, South Australia
100%
EL 6207
Tintinara, South Australia
100%
EL 6294
Wynarka, South Australia
100%
EL 6397
Laffer, South Australia
100%
(i) Other information
Hillgrove Resources Limited, incorporated and domiciled in Australia, is a publicly listed
company limited by shares.
Shareholder Information for Listed Public Companies continued
94
HILLGROVE RESOURCES LIMITED
2024 ANNUAL REPORT
Corporate Directory
Corporate and Registered Office
5-7 King William Road,
Unley S.A. 5061, Australia
Tel: + 61 8 7070 1698
Kanmantoo Copper Mine
440 Mine Road
Kanmantoo S.A. 5252, Australia
Tel: + 61 8 8538 6800
Share Registry
Boardroom Pty Limited
Level 8, 210 George Street
Sydney N.S.W. 2000, Australia
Tel: + 61 2 9290 9600
Fax: + 61 2 9279 0664
Bankers
Westpac Banking Corporation
31 Willoughby Road
Crows Nest N.S.W. 2065, Australia
Auditors
PricewaterhouseCoopers
70 Franklin Street
Adelaide S.A. 5000, Australia
Website
www.hillgroveresources.com.au
General Enquiries
info@hillgroveresources.com.au
HILLGROVE RESOURCES LIMITED
ACN 004 297 116
Adelaide Office
Ground Floor
5-7 King William Road
Unley, SA 5061
Australia
T: +61 8 7070 1698
E: info@hillgroveresources.com.au
W: www.hillgroveresources.com.au