Mayank Bansal, CFA
Mayank Bansal is a CFA Charterholder and heads the Equity Research team at Kapitales Research, with over 5 years of experience analysing global equity markets. He leads fundamental, data-driven research combining rigorous financial analysis with macro trends.
Larvotto Resources Reports Lower Half-Year Loss as Hillgrove Mine Development Advances
Highlights:
Financial Performance Improves as Development Continues
Larvotto Resources Limited (ASX: LRV) reported a lower net loss for the half-year ended 30 June 2026, supported by reduced exploration expenses as its Hillgrove Antimony and Gold Project moved further into the development phase.
The company recorded a loss after income tax of AU$6.93 million, compared with AU$12.36 million in the corresponding period of the previous year. Total income rose to AU$1.64 million from AU$1.08 million, including AU$1.13 million in interest income and AU$505,863 in other income.
Exploration expenditure recognised as an expense fell to AU$786,001 from AU$7.60 million a year earlier. The company attributed the lower expense primarily to the transition of Hillgrove into development, with qualifying project expenditure being capitalised. Larvotto did not declare or pay any dividends during the reporting period.
Hillgrove Project Moves Closer to Production
Work at the Hillgrove Project in New South Wales centred on getting the mine and processing plant ready to begin production. Work on the processing plant progressed, with installation and refurbishment of the primary and secondary crushing circuits nearing completion during the reporting period. Underground contractor PYBAR rehabilitated approximately 2,530 square metres of mine drives, while development ore from the Metz underground mine was delivered to surface stockpiles during the June quarter.
Covering approximately 254 square kilometres, Hillgrove hosts a mineral resource of 1.7 million ounces of gold equivalent. At full production, the project is expected to produce around 4,900 tonnes of antimony and 40,500 ounces of gold annually over an initial eight-year mine life. Larvotto also completed a seven-year gold concentrate offtake agreement with Glencore International AG, complementing its existing antimony concentrate arrangement with Wogen Resources.
Cash Reserves Support Project Investment
At 30 June 2026, Larvotto held AU$87.92 million in cash and cash equivalents and reported net assets of AU$96.66 million. Mine properties under development rose to AU$155.35 million from AU$58.22 million at 31 December 2025, reflecting expenditure on construction and development. Net cash used in operating activities was AU$4.21 million, while investing activities consumed AU$75.31 million. Financing activities generated AU$96.29 million, primarily reflecting borrowing proceeds.
Exploration Adds to Growth Pipeline
Beyond Hillgrove, the company continued advancing its exploration portfolio. Drilling at the historic Blockade Copper Mine in Queensland confirmed copper mineralisation beneath the former open pit. Larvotto later activated its option, gaining exclusive rights to explore, develop and extract copper from the site. At the Eyre Project in Western Australia, further metallurgical test results for rare earth elements remained pending.
Outlook
Larvotto’s half-year results reflect a business directing substantial capital towards mine development while maintaining cash reserves to support its plans. Progress at Hillgrove, together with copper and rare earth exploration initiatives, remains central to its strategy of expanding its minerals portfolio.
Note: All data presented is based on information available at the time of writing.
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