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Hillgrove Resources Limited
(Sydney:KAN)
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Rating:62Neutral
Price Target:
AU$1.50
▲(41.51% Upside)
Action:Reiterated
Date:08/20/26
The score is driven primarily by improving financial trajectory and a strong, low-leverage balance sheet, supported by constructive technical trends. This is tempered by still-thin net profitability and negative free cash flow, while valuation is a notable headwind given the high P/E. Earnings call guidance and operational/resource progress are broadly positive but carry execution and near-term cost/production timing risks.
Positive Factors
Low leverage and balance-sheet flexibility
Very low leverage gives Hillgrove financial flexibility in a cyclical copper market. A conservative capital structure can support mine development, exploration and working-capital needs while reducing dependence on external funding during weaker commodity or operating periods.
Negative Factors
Thin bottom-line profitability
The return to positive operating earnings is encouraging, but near-break-even net profitability leaves little protection against cost increases, production variability or weaker copper realization. Thin earnings also indicate that the enlarged asset base has not yet produced strong shareholder returns.
Read all positive and negative factors
Positive Factors
Negative Factors
Low leverage and balance-sheet flexibility
Very low leverage gives Hillgrove financial flexibility in a cyclical copper market. A conservative capital structure can support mine development, exploration and working-capital needs while reducing dependence on external funding during weaker commodity or operating periods.
Read all positive factors
Hillgrove Resources Limited (KAN) vs. iShares MSCI Australia ETF (EWA)
Market Cap
AU$280.79M
Dividend Yield20.2%
Average Volume (3M)550.88K
Price to Earnings (P/E)12.9
Beta (1Y)1.44
Revenue Growth31.20%
EPS GrowthN/A
CountryAU
Employees10
SectorBasic Materials
Sector Strength58
IndustryCopper
Share Statistics
EPS (TTM)0.09
Shares Outstanding235,955,000
10 Day Avg. Volume605,057
30 Day Avg. Volume550,877
Financial Highlights & Ratios
PEG Ratio-13.28
Price to Book (P/B)1.27
Price to Sales (P/S)0.73
P/FCF Ratio-6.40
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
AU$1.53Price Target Upside43.87% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)0.15
Revenue Forecast (FY)AU$256.13M
Hillgrove Resources Limited Business Overview & Revenue Model
Company Description
Kantra Copper Ltd. is an Australian mining company focused on mining the Kanmantoo Underground Copper Mine in South Australia and mineral exploration in the south-east of South Australia. Its project includes Kanmantoo Mineral Resource and Mutooro...
How the Company Makes Money
Hillgrove Resources primarily makes money by producing and selling copper-bearing product from its mining operations. Revenue is generated from the sale of copper (typically as a concentrate or other saleable copper product depending on processing...
Hillgrove Resources Limited Financial Statement Overview
Summary
Income Statement
56
Neutral
Balance Sheet
74
Positive
Cash Flow
42
Neutral
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Hillgrove Resources Limited Technical Analysis
Positive
1.06
Price Trends
0.94
Positive
0.82
Positive
0.73
Positive
Market Momentum
0.06
Negative
69.75
Neutral
91.90
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:KAN, the sentiment is Positive. The current price of 1.06 is above the 20-day moving average (MA) of 1.03, above the 50-day MA of 0.94, and above the 200-day MA of 0.73, indicating a bullish trend. The MACD of 0.06 indicates Negative momentum. The RSI at 69.75 is Neutral, neither overbought nor oversold. The STOCH value of 91.90 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AU:KAN.
Hillgrove Resources Limited Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | AU$10.51B | 21.58 | 17.19% | 1.53% | 31.56% | 256.29% | |
62 Neutral | AU$280.79M | 12.91 | 16.52% | 20.20% | 31.20% | ― | |
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% | |
52 Neutral | AU$315.05M | -9.60 | -14.19% | ― | ― | 78.60% | |
46 Neutral | AU$67.85M | -6.57 | -9.21% | ― | -100.00% | 98.64% | |
44 Neutral | AU$323.63M | -32.92 | -3.91% | ― | ― | 17.44% | |
39 Underperform | AU$167.63M | -13.54 | -242.58% | ― | ― | -79.69% |
* Basic Materials Sector Average
AU:KAN
Hillgrove Resources Limited
1.19
0.62
108.77%
AU:HCH
Hot Chili Limited
1.64
0.83
102.47%
AU:SFR
Sandfire Resources Limited
22.50
9.97
79.57%
AU:CYM
Cyprium Metals Limited
0.57
0.27
90.64%
AU:CVV
Caravel Minerals Limited
0.31
0.16
103.33%
AU:TNC
True North Copper
0.35
0.05
16.67%
Hillgrove Resources Limited Corporate Events
Kantra Copper Adjusts Director Holdings After 15:1 Share Consolidation
Aug 27, 2026
Kantra Copper Limited has reported a change in the indirect holdings of director Derek Carter, following a consolidation of the company’s capital on a 15:1 basis. His interests, held via the Salamanca Superannuation Fund and The Carter Famil...
Kantra Copper completes rebrand and prepares ASX code change
Aug 17, 2026
Kantra Copper Limited has formally changed its name from Hillgrove Resources Limited, with the new identity now recorded by the Australian Securities and Investments Commission and an upcoming change of its ASX ticker to KAN once a planned capital...
Hillgrove Investors Back Mutooroo Deal, Name Change and Capital Consolidation
Aug 17, 2026
Hillgrove Resources shareholders have approved all resolutions put to a general meeting held on 17 August 2026, with each motion carried by poll. The ratification of the issue of Mutooroo Stage 1 consideration shares and options, along with a chan...
Hillgrove Issues Nearly 4 Million Unquoted Performance Rights Under Incentive Scheme
Aug 6, 2026
Hillgrove Resources Limited has notified the market of the issue of 3,960,457 unquoted performance rights under its employee incentive scheme, to be recorded with an issue date of 7 August 2026. These performance rights, which are not intended to ...
Hillgrove Taps CBA as Tier-1 Banking Partner to Support Copper Mine Growth
Jul 29, 2026
Hillgrove Resources Limited has appointed Commonwealth Bank of Australia as its tier-1 banking partner following a competitive selection process. The move consolidates existing security arrangements with Freepoint Metals Concentrates and the Sout...
Hillgrove Cash Flow Surges as Kanmantoo Copper Output Ramps Up
Jul 21, 2026
Hillgrove Resources reported a strong June quarter, with Kanmantoo achieving a sustained annualised production run rate of 1.8 million tonnes in June and 1.65 million tonnes for the quarter. This operational momentum supported delivery of 3,170 to...
Hillgrove Resources to Present at Noosa Mining Conference
Jul 21, 2026
Hillgrove Resources has released the investor presentation that its CEO and Managing Director, Bob Fulker, will deliver at the Noosa Mining Conference on 24 July 2026. The presentation, available through the conference’s online platform, und...
Hillgrove Resources Seeks ASX Quotation for New Employee-Incentive Shares
Jul 14, 2026
Hillgrove Resources Limited has applied for quotation on the ASX of 3,906,200 ordinary fully paid shares, issued on July 15, 2026 under its employee incentive scheme. The move modestly increases the company’s free-floating equity and reflect...
Hillgrove Director’s Vesting Boosts Ordinary Shareholding
Jul 2, 2026
Hillgrove Resources Limited has reported a change in the securities held by director Robert Fulker, reflecting the vesting of previously issued performance rights. Following the transaction on 2 July 2026, Fulker’s direct holdings increased ...
Hillgrove Resources Seeks Quotation for 5 Million New ASX Shares
Jul 2, 2026
Hillgrove Resources Limited has applied for quotation of 5,000,000 new ordinary fully paid shares on the ASX, with an issue date of 2 July 2026. The securities are being listed under the existing HGO code, expanding the company’s quoted shar...
Hillgrove Hits 1.8Mtpa at Kanmantoo and Fast-Tracks Emily Star Decision
Jul 2, 2026
Hillgrove Resources has reached an annualised run rate of 1.8 million tonnes per annum at its flagship Kanmantoo Copper Mine in June, in line with its ramp-up plan. Mining and milling performance both achieved this level, underscoring the effectiv...
Hillgrove drills deepest copper-gold intersection yet at Kanmantoo
Jun 29, 2026
Hillgrove Resources reported new surface drilling results from the Kanmantoo Copper Mine’s Kavanagh mineralised zone, confirming significant copper-gold intersections at depths more than 100 metres below previously known mineralisation. The ...
Hillgrove Confirms High-Grade Emily Star Results as It Advances Stage 2 Decision at Kanmantoo
Jun 16, 2026
Hillgrove Resources has reported further high-grade copper-gold intersections from underground drilling at the Emily Star prospect within the Kanmantoo Copper Mine, with recent holes confirming consistent mineralisation. These results strengthen t...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.