Freehill Mining (ASX: FHS) has confirmed its position as a major regional supplier of material to support local infrastructure projects with robust sales figures from its Yerbas Buenas (YB) mine in Chile.
Following a major campaign in 2024 to revitalise YB, Freehill reported a 27.8% month-on-month increase in sales for November of a record $363,000 and has also upgraded its figures for October.
The company generated cumulative gross waste material sales of $647,000 through the first two months of the December quarter, already an increase of 35.8% from the previous period with the December sales still to be counted.
Managing director Paul Davies said the December period continues to look promising, with the recommencement of operations at the company’s smaller processing plant that had been idle since July likely to boost material sales from YB.
The company expects further sales momentum with two processing plants now fully operational and continuing strength for industry demand.
“With a customer base that already comprises several of Chile’s largest cement and construction companies, we are confident that sales will continue to track up,” he said.
“Alongside our strong revenue momentum, Freehill is now committed to further optimising its processing operations to drive margin and profit growth into CY2025 and beyond.”
Chair Ben Jarvis told shareholders last month that the success at YB in 2024 reflects Freehill achieving its near-term objectives following a series of delays at the project.
Mr Jarvis noted that Freehill had successfully executed a multi-phase strategy during the financial year to expand waste material production and establish a source of product to meet growing market demand.
“We managed to achieve this while also reporting progressive growth in quarterly sales, as demand stayed robust while our capacity to meet that demand increased.”
The company will use the YB blueprint to establish multiple fast start-up cash-generating operations that require little upfront capex and minimise dilution for shareholders.
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