Freehill Mining Doubles Sales, Boosts Cash Flow in December Quarter
Freehill Mining has reported a record-breaking December quarter with gross sales doubling to $954,000 and a significant improvement in operating cash flow, positioning the company for sustained growth in 2025.
- Record quarterly gross sales of $954,000, up 100% from prior quarter
- Cash receipts increased 56% to $785,000
- Net cash used in operations reduced to -$114,000 from -$276,000
- Yerbas Buenas project established as a reliable supplier for major infrastructure projects
- Plans underway to assess magnetite mining potential at Yerbas Buenas
Strong Sales Momentum at Yerbas Buenas
Freehill Mining Limited (ASX: FHS) has delivered a standout performance in the December 2024 quarter, doubling its gross sales to $954,000 compared to the previous quarter’s $476,000. This surge reflects the company’s successful ramp-up of material supply from its wholly owned Yerbas Buenas project in Chile, which has now become a trusted supplier to several large-scale, multi-year infrastructure projects in the Coquimbo region.
Managing Director Paul Davies highlighted the operational improvements driving this growth, noting that higher margins on production costs and streamlined logistics have contributed to stronger cash receipts and improved profitability. The company’s ability to meet increasing demand with quality materials has solidified its market position and set the stage for continued expansion.
Improved Cash Flow and Cost Management
Alongside record sales, Freehill Mining reported a 56% increase in cash receipts to $785,000, reflecting enhanced collections and customer engagement. Importantly, net cash used in operating activities fell sharply to -$114,000 from -$276,000 in the prior quarter, signaling a move towards positive cash flow as the business scales.
The rise in production costs to $577,000 was expected given the increased output, but the company successfully optimized waste material production and transport logistics to contain expenses. Administrative and corporate costs also declined by over 40%, normalizing after one-off expenses in the September quarter.
Strategic Outlook and Growth Prospects
With cash and receivables exceeding $380,000 at quarter-end and factoring facilities in place, Freehill is well-funded to support ongoing operations and growth initiatives. The company anticipates that gross sales will continue to rise in coming quarters, driven by existing customer demand and new tender opportunities.
Looking ahead, Freehill is evaluating the potential to recommence small-scale magnetite mining at Yerbas Buenas. Plans to produce a bulk sample of concentrate aim to benchmark production and processing costs, which could open additional revenue streams if viable.
Overall, Freehill Mining’s December quarter results underscore a successful transition from development to a dependable supplier role in a competitive market, with operational discipline and strategic positioning laying a solid foundation for 2025.
Bottom Line?
Freehill’s strong quarter sets a promising trajectory, but the viability of magnetite mining will be a key watchpoint.
Questions in the middle?
- How will Freehill secure and convert new tenders into long-term contracts?
- What are the projected costs and timelines for magnetite mining at Yerbas Buenas?
- Can Freehill sustain margin improvements as production scales further?
