Copper concentrate production for the period totalled 27,000 dry tonnes while output of copper within concentrate amounted to 6330t.

Total concentrate sold was about 29,100dt at a C1 cash cost of US189 ($A216) per pound of copper.

These figures represent positive momentum versus the prior quarter, but were prepared only for comparative purposes, as Hillgrove’s September quarter is officially a two-month period intended to bring the company in line with a new calendar-year reporting schedule.

The three months to July saw Hillgrove produce 25,620dt of copper concentrate and 5550t of contained copper metal, with concentrate sales of 26,280dt and C1 costs of $194/lb.

Contained copper production for the two-month quarter to September was at the upper end of guidance at 4430t.

Revenue for the shortened quarter was 11.4% down on the prior three-month quarter at $A36 million, with a 6.4% lower copper price achieved of $3.50/lb.

On a per tonne basis, this price amounts to about $7716/t, and compares to copper’s last trading price on the London Metal Exchange of about $7644/t.

Over the short quarter, Hillgrove brought its hedge cover to about 90% with additional hedges for 1490t of copper at $7642/t.

Lower C1 costs for the period were attributed to well-managed operating costs across the Kanmantoo operation in South Australia as well as a continued good performance on the production front.

Some end-of-winter rain and strong winds continued to disrupt the mine performance over the quarter, but the plant remained on guidance.

While mining of ore was interrupted, the mine primary grade for August and September was greater than 1% copper.

Rain impacted all pits, but was particularly felt in the operation’s deeper Kavanagh pit, which is the dominant source of higher grade material.

Hillgrove noted that grades in the final Kavanagh benches were improving with depth.

“The operating performance this quarter has further demonstrated the capability to achieve and exceed plan that is now established at Kanmantoo, with production outcomes begin repeated and delivered as forecast and planned,” the company said.

“We will continue to work on the improvements identified through the operating, planning and implementation processes.



“Focus will be on the continued optimisation of both ore mining and processing, and increases in mill capacity to maintain a high level of copper production and lower costs.”

Cash on hand was down 5.8% over the quarter to $11.4 million, with total debt reducing from $25.2 million to $23 million.

Net debt was 11.4% down at the end of the quarter at $11.6 million.

Shares in Hillgrove were last trading 3.9% higher at 53.5c.