Kantra Copper Ltd

Hillgrove reported record underground quarterly copper production of 3,120 tonnes and copper payable sales of 2,842 tonnes at an average realized price of $16,629 per ton. Revenue increased 5% to $53.8 million, operating mine cash flow was $14.6 million, and net group cash flow was $4.8 million, lifting cash to $25.2 million at quarter end. All-in sustaining cost was $6.20 per pound of payable copper sold, within the 2026 guidance range of $5.75 to $6.25; on a produced basis AISCs were $5.65 per pound. Looking ahead, management said it remains on track to deliver 2026 production and cost guidance, and expects the mine run rate to rise to 1.7 million to 1.8 million tonnes per annum by the end of June. The company also said it is progressing Emily Star and Kavanagh North, with Emily Star FID targeted toward the end of the current quarter / beginning of next quarter, and that these projects are part of the pathway to a 2 million tonne-plus operation.

Bob Fulker struck an optimistic but careful tone, emphasizing that the quarter showed improving grades, wider zones, and steady plant performance as the mine works through the pinch-and-swell zone. He said the second half of the year should be better, with grades expected to lift again in the third quarter and tonnages increasing as the third production drill rig arrives. He framed Emily Star and Kavanagh North as important future ore sources that can supplement existing feed rather than replace it, helping the mine move beyond 2 million tonnes per annum.

Luke Anderson highlighted the quarter’s financial strength, citing revenue of $53.8 million, operating mine cash flow of $14.6 million, net group cash flow of $4.8 million, and cash of $25.2 million at March 31. He said costs rose 2% quarter-on-quarter to $39.3 million because of higher fuel and transport costs and more spending at Nugent, but AISCs of $6.20 per pound remained within guidance and improved to $5.65 per pound on a produced basis. He also noted 1,650 tonnes of copper hedges were closed out at $14,390 per tonne, while 2,200 tonnes remained hedged at $14,559 per tonne.

Analysts focused on the pinch-and-swell zone, Emily Star timing, diesel risk, and the garnet/tailings deal. Management said grades are beginning to lift as development moves through the pinch zone, with a stronger second half expected and the production drill rig due in the next couple of weeks. On Emily Star, they said FID should be made toward the end of this quarter or the beginning of next quarter after drilling and geotechnical studies, and they described the garnet agreement as a small royalty opportunity that could also transfer rehabilitation liabilities to Heavy Minerals over time.