Australia's Larvotto Resources has unveiled a definitive feasibility study (DFS) for its Hillgrove antimony/gold project in New South Wales, projecting the development into one of the Western world's foremost antimony producers. 

The study outlines robust financial metrics, including a post-tax net present value (NPV) of A$694-million and an internal rate of return (IRR) of 102% under its mid-price scenario, with production slated to begin in the second quarter of 2026.

The 100%-owned Hillgrove project is expected to operate for eight years, producing an average of 85 000 oz/y gold equivalent and supplying about 7% of the world’s antimony at peak output. The DFS builds on an earlier prefeasibility study and reflects a sharp rise in confidence for the project’s economic and technical viability.

MD Ron Heeks called the publication of the DFS a “major milestone", noting the company completed it within 18 months of acquiring the project. “The DFS confirms Hillgrove as a technically sound, high-margin critical minerals project with a rapid pathway to production,” Heeks said.

At mid-price assumptions which the company describes as still conservative compared to elevated current spot prices, the project delivers average earnings before interest, taxes, depreciation and amortisation of A$250-million and post-tax free cash flow of A$128-million. The mid-case economics also reflect a total post-tax free cash flow of A$1.02-billion and an average yearly pre-tax free cash flow of A$200-million.

“The DFS delivers outstanding economics at the base case and even better at what the company firmly believes is the minimum economics that would be achieved at the mid-price commodity price scenario,” Heeks said. “These results reflect the value of the significant installed infrastructure already in place at Hillgrove and the excellent work undertaken by the Larvotto team.”

Initial capital expenditure is estimated at A$139-million, including an upgrade to the on-site minerals processing plant from 250 000 t/y to 525 000 t/y. The operation will source ore from both underground and openpit sources. Under base case pricing assumptions ($2 400/oz gold, $25 000/t antimony), Hillgrove still returns an NPV of A$280-million and an IRR of 48%, with a 26-month payback period. The mid-price case shortens that to just 11 months.

Larvotto has already secured a seven-year offtake agreement and A$6-million prepayment with global trading firm Wogen Resources for antimony concentrate, providing a cornerstone for its funding strategy. The company also revealed it had received seven non-binding term sheets from financiers and is now advancing negotiations to select a debt package.

Heeks said the DFS represents “stage one” of the Hillgrove development, with significant upside still to be realised through resource conversion and exploration. “The project has a long way to go to reach full potential,” he said. “There are significant resources yet to be converted into reserves and this will be a near-term focus moving forward.”

Heeks added: “With production set to commence in 2026, Hillgrove is poised to become Australia’s largest producer of antimony, expected to produce 7% of global antimony requirements when global supply is tightening, and Western governments are prioritising strategic supply chains.”

The Hillgrove project is strategically positioned to supply critical minerals into global markets amid constrained supply and rising demand, especially for antimony, which is used in flame retardants, batteries and military applications.

“Hillgrove is uniquely positioned to deliver long-term value to shareholders as one of the few near-term antimony projects in the Western world and set to play a key role in supporting global supply chain security while generating robust cash flow,” Heeks said.