The dam collapse at the mine owned by BHP, Vale and Samarco caused widespread pollution along the Doce River, which led to a massive $45 billion fine being dished out to the companies involved.
Although the latest approvals have put a rocket under Larvottoโs development timeline, it isnโt the only card in play. The company is continuing to push a separate Modification 5 application, which aims to ramp up processing capacity from 250,000 tonnes to 500,000t per annum.
If approved, the second application will also give Larvotto a final nod to embed its dry-stacking waste management system into all of its operations.
Larvotto Resources managing director Ron Heeks said: โWith formal approval now secured, we can immediately finalise financing and move towards a 2025 restart of operations, demonstrating Hillgroveโs true potential as a globally strategic antimony and gold asset. Weโre now entering final-stage financing discussions with confidence, backed by an approved, world-class project.โ
When Larvotto flips the switch on operations at its Hillgrove project – home to a 1.97-million-ounce gold equivalent resource grading 7.2 grams per tonne (g/t) – it expects to churn out annual production of 40,566 ounces of gold and 4878t of antimony over an 8.2-year mine life.
The total resource sits at 1.13 million ounces of gold and 96,000t of antimony, including a 636,000-ounce gold equivalent ore reserve at 6.6g/t, positioning Hillgrove as a high-grade, dual commodity play.
In May, the company posted a jaw-dropping definitive feasibility study, valuing the projectโs net present value at $694 million using an 8 per cent discount rate. The study assumed metal prices of US$2850 (A$4384) per ounce of gold and US$41,000 (A$63,076) per tonne of antimony.
The mine is also forecast to generate $251 million in annual EBITDA and an after-tax free cash flow of $128 million.
If current spot prices are factored in, the new present value skyrockets to $1.269 billion, the EBITDA jumps to $354 million, and free cash flow hits $198 million a year.
The latest approvals represent a major de-risking moment for the Hillgrove venture and should put Larvotto in pole position to lock in contractors, kick off procurement and roll into construction.
The news couldnโt come at a better time. Antimony prices have raced past US$60,000/t (A$92,000/t) amid growing global recognition of its strategic value, while the gold price is sitting pretty at more than $5000 per ounce.
Backed by strong fundamentals, a full regulatory sign-off and the promise of near-term cash flow, Larvotto appears on the brink of transforming Hillgrove from a heritage site into a 21st-century metals hub. With shovels set to hit the ground in 2025 and the first pour expected in 2026, the countdown is on.
Is your ASX-listed company doing something interesting? Contact: mattbirney@bullsnbears.com.au
About The Author
