Larvotto Resources has commenced production of gold and antimony concentrate at its wholly owned Hillgrove Mine in New South Wales, Australia, marking a critical operational milestone following the recent redevelopment of the processing plant. The start of production enables the company to fulfill binding offtake agreements with Wogen Resources for antimony and Glencore for gold concentrate.

Market Context

The activation of the Hillgrove mine adds a new source of antimony and gold to the global supply chain. Antimony is a critical mineral often subject to supply constraints, making consistent production from established mines significant for industrial users. The site's output is expected to operate under an initial term of eight years, providing medium-term visibility for commodity markets.

Analysis

Larvotto Managing Director Ron Heeks described the commissioning of the flotation circuit and concentrate filter presses as the latest in a series of milestones toward establishing a steady-state operation. With first concentrate produced, the company moves into the delivery phase of its secured contracts. The antimony offtake agreement with Wogen Resources, signed in December 2024, grants exclusive global rights for the first seven years. Simultaneously, gold concentrate will be sold to Glencore under a separate agreement for the same seven-year period.

Key Numbers

- Forecasted annual production: Approximately 4,900 tonnes per annum (tpa) of antimony and 40,500oz of gold.

- Antimony concentrate specification: 60% antimony product achieved via rougher, Jameson, and cleaner flotation cells.

- Gold concentrate annual offtake: Anticipated volume of around 15,000 dry tonnes.

- Initial operational term: Eight years.

- Wogen Resources offtake duration: Seven years of exclusive global rights.

- Glencore offtake duration: Seven years for gold concentrate sales.

What to Watch

Traders should monitor Larvotto's progress in reaching steady-state operations and the volume of concentrate delivered under the Wogen and Glencore agreements. The successful transition from commissioning to consistent production will be a key indicator of the mine's long-term viability and its impact on regional antimony and gold supply dynamics.