Glencore ties with Australia’s Larvotto as it signs 7-year gold offtake deal ahead of production

Glencore, the Swiss commodities group led by South African executive Gary Nagle, is acting as an offtake buyer and commercial intermediary for gold concentrate from Larvotto Resources’ Hillgrove Antimony-Gold Project in New South Wales, under a binding seven-year agreement covering production from the mine’s planned August 2026 start-up. 

The agreement covers approximately 15,000 dry tonnes per annum (dtpa) of gold concentrate and positions Glencore as the preferred marketing and logistics partner for one of Australia’s emerging dual-commodity developments. The deal also advances Larvotto’s commercialization strategy as the company moves toward first production.

First production targeted for 2026

Larvotto confirmed that commissioning and initial production at Hillgrove remain on track for August 2026, with development progressing in line with budget and schedule expectations.

Under the terms of the deal, Glencore will purchase approximately 15,000 dry tonnes per annum (dtpa) of gold concentrate produced at the site.

Commercial structure and pricing

The arrangement is structured on a mine-gate basis, with Glencore taking responsibility for logistics from the project site to final customers. Larvotto will receive payments based on London Bullion Market Association Gold Price, adjusted for the contained gold content in the concentrate.

The company said the offtake agreement is based on standard commercial terms and remains subject to the execution of final documentation.

Completing the project’s marketing framework

The Glencore agreement follows an earlier antimony concentrate offtake deal with Wogen Resources. With both agreements in place, Larvotto said it has now secured the core of its marketing framework for Hillgrove’s primary concentrate streams.

The company selected Glencore after a competitive tender process involving several global trading houses, citing its scale, logistics capabilities, and downstream customer network.

Glencore, listed on the London Stock Exchange and the Johannesburg Stock Exchange, has a market capitalization of £68.22 billion ($91.43 billion), underscoring its position as one of the world’s largest commodity traders.

Revenue visibility ahead of production

Larvotto said the dual offtake agreements for gold and antimony provide increased revenue certainty as the project moves toward production. Both metals are expected to serve as key revenue drivers for Hillgrove’s long-term economics.

Managing Director Ron Heeks said the agreement marks an important milestone in transitioning the project from development to operations. He noted that strong gold prices attracted significant interest from major commodity traders during the tender process, adding that Glencore’s global reach and customer base made it the preferred partner.

Heeks added that ongoing metallurgical work continues to assess potential tungsten byproduct production, with further offtake discussions expected as development progresses.