Hillgrove Resources posts positive profit of $10.8m
4/04/2007 By: Phoebe Ash
egoli.com.au
Hillgrove Resources Limited (HGO) posted its first annual profit today at $10.8 million for year ended 31 January 2007, compared with a loss of $1.1 million in the previous year. The company said the profit was attained after the sale of its wholly owned subsidiary Hillgrove Energy Pty Limited to Eastern Star Gas Limited (ESG) in October 2006.
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The group explained the sale provided a simplified ownership structure enabling it to focus on bringing the Kanmantoo Copper Gold Mine, near Adelaide, on stream.
The emerging copper producer said the coming year should be transformational for the company as it moves Kanmantoo towards a decision to mine and as it continues to develop its portfolio of growth projects and investments.
The company noted Kanmantoo currently hosts an indicated and inferred resource of 28Mt grading 0.94% copper and 0.20 grams per tonne gold, containing 262,000 tonnes of copper and 177,200 ounces of gold.
Commercial production is targeted for early 2009 at a mining rate of 2Mtpa producing approximately 19,000t copper in concentrate and 6,000 ounces of gold per annum.
Managing director David Archer said they were pleased to book their first profit, which further enhanced the company’s financial position as it moves toward the commissioning phase at Kanmantoo.
“We achieved all our key targets last year, with a number of successful drilling campaigns and the completion of the Pre-Feasibility Study at Kanmantoo representing significant milestones,” he added.
At 1439 AEST shares in Hillgrove Resources inched up 0.5c to 27.5c.
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