What Does Larvotto Do?

Larvotto Resources Limited (ASX: LRV) is an Australian emerging mining company transitioning from explorer to near-term producer. Its flagship asset, the Hillgrove Antimony–Gold Project in New South Wales, positions the company as a potential supplier of two strategically important metals: gold a monetary safe-haven and antimony, a critical mineral used in batteries, semiconductors, and defense alloys.

Headquartered in Perth, Larvotto also holds complementary projects in copper (Mt Isa, Queensland) and lithium–nickel (Eyre Peninsula, South Australia), but Hillgrove dominates its current valuation and investment focus. With the Definitive Feasibility Study (DFS) completed in 2025 and a Final Investment Decision (FID) achieved in July, Larvotto now moves decisively into the development phase, targeting first production in Q2 2026.

The Hillgrove Project: Reviving a Strategic Mine

Hillgrove is a brownfield site located near Armidale, New South Wales, historically producing over 730,000 oz of gold and 50,000 t of antimony. Larvotto owns 100 % of the project, which benefits from established underground infrastructure, an existing processing plant, and grid access all factors that shorten the path to production.

According to the 2025 DFS, the project exhibits very strong underlying economics, with an eight-year mine life and average annual production of around 40,500 ounces of gold alongside roughly 4,900 tonnes of antimony. The study outlines an after-tax IRR of approximately 102% and an NPV of about A$694 million using an 8% discount rate, while all-in sustaining costs are estimated at roughly A$1,367 per ounce on a gold-equivalent basis.

DFS confirms Hillgrove as a technically robust, high-margin critical minerals project. At nameplate capacity, Hillgrove could supply up to 7 % of global antimony demand, a critical diversification opportunity for Western supply chains currently reliant on China and Russia. Engineering work and site refurbishment are advancing, with construction expected to commence in late 2025 and concentrate production targeted for mid-2026.

Funding and Financial Strength

Larvotto’s FY25 accounts point to a company moving into development with a relatively strong balance sheet. As at June 2025, it held A$26.6 million in cash and equivalents against borrowings of A$10.2 million at a fixed rate of 12%, resulting in a net cash position of approximately A$13.6 million. The FY25 net loss of A$12.36 million largely reflects ongoing exploration activity and share-based payment costs rather than operational weakness.

Subsequent to year-end, Larvotto secured a US$105 m senior secured debt facility (12 % coupon, 4-year term) and completed an A$60 m equity placement at A$0.68 per share in July 2025. Together, these transactions fully fund Hillgrove’s development and initial ramp-up.

This new capital structure, mixing high-yield debt with equity from domestic and international investors, gives Larvotto the flexibility to accelerate construction while preserving sufficient liquidity buffers against cost inflation. The company’s net tangible assets now exceed A$54 m, with project funding substantially committed.

Market Outlook: Antimony and Gold in Focus

Antimony’s Strategic Importance

Antimony is listed as a critical mineral by the governments of Australia, the U.S., and the EU. The estimations show a GAGR of around 8% for the antimony demand, resulting in a 4.8 billion USD market in 2033 from the current market of around 2.5 billion USD. It plays essential roles in energy storage, flame retardants, and defence alloys, yet over 80 % of the global supply comes from China. Supply disruptions and geopolitical risk have pushed prices to around US$40,000–60,000 per tonne in 2025, remarkably increasing in 2025 due to the limited supply, China Export Problems and increasing demand. Hillgrove’s entry into production will provide one of the few ESG-compliant, Western-sourced streams of antimony concentrate, making Larvotto a strategic asset in diversifying global supply chains.

Gold: A Stable Revenue Base

Gold prices have remained elevated above US$4,000 / oz in 2025, supported by inflationary pressures and strong central-bank demand. For Larvotto, gold acts as a natural hedge, stabilising cash flow when industrial-metal markets fluctuate. The project’s gold-equivalent AISC places it comfortably within the second quartile of global producers, ensuring positive margins even under conservative price scenarios.

Financial Snapshot and Operating Outlook

FY25 was a transition year for Larvotto, with limited operating revenue (A$1.08 m) but heavy investment in feasibility and project development. The company’s principal expenditures included A$5.7 m in exploration, A$3.9 m in employee and supplier costs, and A$1.7 m in share-based payments. Despite the headline loss, cash burn remained controlled, and year-end liquidity was strong.

Management guidance projects construction spending through FY26, with the first concentrate sales expected in the following financial year. Based on DFS forecasts and current commodity prices, analysts estimate potential EBITDA of A$150–350 m per year in different scenarios once steady-state operations are achieved.

Trading and Technical Setup

Larvotto shares (ASX: LRV) have consolidated in the A$0.50–1.4 range through 2025, stabilising after July’s placement. The stock price is in an up-going channel and crosses its 50-day moving average (~ A$0.73, see the green curve), showing the tendency to catch new all-time highs. The main Support levels are ≈ A$0.85 (the red line in the chart) and ≈ A$1.00 (the orange line in the chart), and the Resistance level is at its previous ATH at ≈ A$1.40 (the blue line in the chart). A decisive breakout above A$ 1.40 could invite fresh momentum as construction milestones are met.
Volume trends and RSI indicators remain neutral with a tendency to upper levels (see the chart), consistent with investor “wait-and-see” behavior typical of companies entering a high-capex phase, but with remarkable potentials.

How to Play Larvotto’s Stock

For investors seeking exposure to critical minerals with tangible near-term production, Larvotto stands out as a high-beta but well-funded opportunity. The company brings together very strong project economics, with an IRR above 100% and an NPV of around A$694 million, a strategically attractive mix of antimony and gold, and a fully funded balance sheet following the July 2025 financing. As construction milestones are met and offtake agreements are announced, the stock also offers clear potential catalysts for a market re-rating.

Key watch points for the next 12 months include:

1. Progress on construction and processing-plant refurbishment.

2. Confirmation of first-ore development and underground rehabilitation milestones.

3. Updates on offtake partnerships or downstream alliances.

4. Quarterly cashflow and expenditure trends as capex ramps up.

Investors should note that execution risk remains elevated during the build phase, while commodity-price volatility (especially in gold and antimony) could influence short-term valuation. However, Larvotto’s secured funding and proven resource base provide a buffer against these variables.

Bottom Line

Larvotto Resources is evolving from a small-cap explorer to a fully funded, near-term producer positioned at the intersection of gold stability and antimony’s strategic importance. With construction funding secured and a strong project pipeline, the company has entered the execution phase where operational delivery will define its next re-rating.

Frequently Asked Questions about Larvotto Resources (ASX: LRV)

Q1: Is Larvotto already producing metals?
Not yet. Construction at Hillgrove is scheduled to begin in late 2025, with first production expected mid-2026.

Q2: What makes Larvotto unique?
It will be one of the only Western producers of antimony, a mineral on multiple nations’ critical-minerals lists, alongside profitable gold by-products.

Q3: How is the project funded?
Through a US$105 m debt facility and a A$60 m equity raise, providing full development funding.

Q4: What are the main risks?
Potential construction delays, commodity-price swings, and elevated financing costs (12 % coupon).