What is happening with Freehill Mining (FHS.ASX) stock today?

Freehill (FHS.ASX) has repositioned itself as a supplier of Construction Materials...

Recent capital raise will provide the Company with funds to support its growth, this includes:

·       Expanding the Company’s aggregate processing operations in Chile

·       Advance activities at its 100%-owned Yerbas Buenas magnetite mine and its El Dorado Cu Au project

·       costs of the entitlement offer and the placement, along with working capital

As noted in the recent prospectus, ‘this fundraising is a major step in the value creation journey for the Company and we look forward to continued shareholder support as we advance the Company’s projects to the next level and deliver value for shareholders.’

The story so far… And what’s to come

• At a time of downward move in the iron ore price the Company repositioned itself as a supplier of Construction Materials utilising its mine waste material and within a relatively short space of time has become income producing with a pathway to increasing revenues and profit

• The Company recently announced a Long-term lease signed on a second site in Chile that allows Freehill to significantly scale up its construction material processing and supply operations in the La Serena/Coquimbo region where the Company is supplying these materials (sand and gravels) to support major infrastructure projects.

As per the recent announcement, the new site in Chile will deliver:

o   A forecast ~40% decrease in transport costs, the Company’s single largest expense. Delivery distance reduce from ~50km to ~5km given the proximity of the new site to where the majority of material is currently being delivered;

o   Access to local electricity supply removing both generator and fuel costs;

o   In addition to our established customers, Freehill can now access smaller local contractors to purchase materials on pick up basis providing margin enhancement; and

o   Further cost and time efficiencies given the proximity to multiple service providers.

• Freehill will now be supplying material from two sites – YB and the new site which is located on the fringes of the La Serena/Coquimbo metropolitan area. Anticipated cash flows from material sales from both sites provide capital flexibility to pursue bulk sampling and mine planning for magnetite mining at YB and further exploration at the 730 HA El Dorado project which has included +1m sample widths of 13.52g/t Au, 9.3g/t Au, 7.94 g/t Au. Furthermore, other growth opportunities that deliver near-term revenue are also being advanced.

• The Company is economically positioned as global demand for both iron ore and gold is expected to remain strong, but for different reasons. Forecasters are saying Iron ore demand is forecast to grow steadily, supported by infrastructure development in emerging markets like India and Southeast Asia, although growth may moderate slightly due to increased steel recycling. Grandview research. Meanwhile, global gold demand is projected estimated to grow at a CAGR of approximately 6.51%, reaching around USD 400 billion by 2030 Yahoo finance. Gold’s growth will be driven by persistent geopolitical tensions, economic uncertainty, and central bank buying, reinforcing its role as a key safe-haven asset. Together, both commodities are poised to benefit from global development needs and rising demand for financial security.

• Chief Executive Officer – Paul Davies, has an established track record which combines his intimate knowledge of Freehill’s activities combined with significant experience in the mining sector from his 30 plus years in the finance industry, where he was CFO of the Company for six years prior to being appointed Chief Executive. During his career, Mr Davies has held leadership roles with many organisations, both large and small, in addition to his finance experience. Most notably, he was Director in Charge of Corporate and Institutional Banking for Deutsche Bank Australia and a member of the Deutsche Bank Credit Committee. He has been directly involved in over $20 billion worth of transactions involving origination, advising, arranging, structuring, project finance, lead managing, syndication, negotiation, risk management, including servicing many of Australia’s major mining companies. Before Deutsche Bank, Mr. Davies worked for a number of years with both Bankers Trust Australia and Macquarie Bank.

• The Company has an experienced Board and Management Team, with extensive experience in mining (particularly in Chile), finance, debt and equity markets and investment.

About the Company

FREEHILL MINING LIMITED (FHS) is an ASX-listed, iron ore, gold and copper explorer, focused in the near term on developing its materials supply business for the local construction industry delivering sustainable cashflows to support its broader activities in addition to further work on its El Dorado property and production of a 63% iron ore bulk sample from its Yerbas Buenas project.

Cheers,

Stevo – Armchair Banker MAppFin, AdvDipFP, ADA

‘Meet Stevo, the financial wizard behind Armchair Banker. With 15 years of experience in investment banking, corporate finance, and markets, Stevo’s résumé is so impressive it could intimidate a spreadsheet.’

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