Freehill Mining Limited (ASX: FHS), a Chilean-focused mining and exploration company, pursues a dual strategy of scaling its cash-generating aggregates business while advancing copper-gold assets. The company operates two aggregates sites and holds options over copper-gold deposits in Region IV, Chile. Freehill recently announced steady gross sales for July and August, despite its Islon and Yerbas Buenas aggregates operations being significantly impacted by an extreme weather event in Chile.
Operations in July were heavily affected by a severe, El Niño-amplified frontal system that caused record rainfall in the Coquimbo Region, leading to a state of catastrophe and cutting off major transport routes. While this directly impacted sales for the month, customer demand remained robust. Sales rebounded in August as operations recovered, driven by products like Gravilla 3/4″, 10mm sand, and fine sand. The extensive damage caused positions Freehill to potentially support crucial infrastructure rebuilding efforts with its essential aggregates materials.
Freehill is also progressing its strategic expansion into copper mining, with the Yerbas Buenas project advancing under engineer Marco Meneses. The recent approval of the large-scale Dominga Mine, near Yerbas Buenas, positions Freehill to potentially supply materials for its infrastructure. Furthermore, work is advancing on the mine plan submission for Blanco y Negro with SERNAGEOMIN, Chile’s Geological Authority, following a recent site visit.
Managing Director Paul Davies lauded the aggregates business’s resilience and strong revenue rebound, affirming its core growth platform status. Non-Executive Chairman Ben Jarvis highlighted the company’s established presence and local capabilities as an advantage for its copper expansion. He also pointed to proposed Chilean legislative changes, potentially doubling small-scale mining throughput limits from 5,000 to 10,000 tonnes per month, which could significantly enhance growth potential and foster a more diversified, scalable business for Freehill.
