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Dividend windfalls from Roy Hill and Atlas

The Hancock Prospecting Group has recorded strong financial performances from its two main mining assets, Roy Hill and Atlas Iron.

Roy Hill, the largest revenue and profit earner for the group, has recorded an after-tax profit of $3.2 billion, despite lower prices for iron ore.

Last financial year, for the first time in the company’s history, it shipped a record of more than 60 million tonnes of iron ore to international customers.

Cash flow from operations was $4b for the financial year, enabling Roy Hill to pay a total of $3.3b in dividend payments to its equity partners Hancock Prospecting, Marubeni, POSCO and China Steel Corporation.

Roy Hill executive chairman Gina Rinehart said the significant contribution Roy Hill and mining in general made to the country had been highlighted, creating jobs and opportunities, and powering the economy through COVID.

Meanwhile, Atlas Iron will distribute a one-time dividend of $225 million, to be paid to shareholders on December 2022.

The payment is the first since the Hancock Prospecting Group won a three-way stoush with Fortescue Metals Group and Mineral Resources for control of the then ASX-listed miner in 2018.

During the past year, the company reported consistent product quality from its Mt Webber, Sanjiv Ridge and newly commissioned Miralga mines while shipping increased to 9.8 million tonnes.

Lower iron ore prices and higher freight costs suppressed margins, resulting in earnings after tax of $302 million, down from $938m in FY21.

The Miralga mine was a first for the industry, with Indigenous contractor East West Pilbara undertaking civil and construction works as well as being involved in ongoing operations.

As part of the development of the organisation, Atlas began a strategic growth plan of more than $700m which will underpin the long-term value of the business.

Rinehart said Atlas Iron continued to contribute strongly to the Hancock Group, including first ore from a new mine on time and on budget.

“Our investments in Atlas and across the group are leading to significant tax and royalty revenues for governments, and payments to indigenous peoples,” she said.

The Hancock Group won three categories at the recent Australian Mining Prospect Awards.

 

Editor of industrial titles and mastheads with Prime Creative Media. Publications include Rail Express and Australian Mining (web content).
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