Freehill Mining sales update

Freehill Mining Limited (ASX: $FHS) has reported a significant increase in sales revenue for May 2024, with a month-on-month growth of approximately 42% to $165,182 compared to $116,209 in April. The sales surge is attributed to the expansion of Belfi operations at the Coquimbo Port project and the anticipated commencement of construction work at Coquimbo Hospital, driving increased sales to major customer, Cementos Melón. The company is also preparing to re-establish magnetite mining operations as a second revenue stream from Yerbas Buenas.

Executive Commentary

We are pleased with the step up in sales in May and expect further growth given Belfi's expansion of works at the Coquimbo Port and as Melon's construction of a new hospital in Coquimbo moves into an active phase. This has coincided with recent site visits to YB by Melon staff reviewing and approving material specifications for this project. As such, June sales will outperform those reported for May and increases thereafter as orders from both major customers start to materialize. We stress that while revenue reported to date is encouraging, we are still in the early stages of ramp up at YB. In addition, we anticipate revenue growth from the planned re-commencement of magnetite mining later in the year.

Sales Update Summary

Freehill Mining Limited (ASX: $FHS) has experienced a substantial increase in sales revenue, driven by the expansion of Belfi operations at the Coquimbo Port project and the anticipated commencement of construction work at Coquimbo Hospital. The company anticipates further sales growth in the coming months, with June sales expected to surpass those reported for May. Additionally, Freehill is preparing to re-establish magnetite mining operations as a second revenue stream from Yerbas Buenas, further contributing to the company's positive outlook for the year.