Roy Hill production boost drives Hancock profits

Image: Roy Hill

Roy Hill has increased production at its Pilbara iron ore mine in Western Australia after commissioning a wet high intensity magnetic separation plant at the site.

The plant at the Roy Hill mine can recover over four million tonnes a year of iron ore that was previously reported to waste, while at the same time increasing product quality.

As a result, Roy Hill delivered 60 million tonnes a year equivalent of production during the June quarter, guiding its majority owner, Hancock Prospecting to hit $4.1 billion in net profit after tax during the 2020 financial year.

This represents more than 50 per cent increase in its bottom line profitability.

The success has also allowed Roy Hill to pay its first dividend (totalling $475 million) last week.

Outside of Roy Hill, Hancock Prospecting has continued to develop the Mulga Downs project in Western Australia.

The company completed 95,000 metres of drilling over the fiscal year, expanding the Mulga Downs iron ore resource by 290 million tonnes.

Hancock Prospecting’s four joint venture Hope Downs mines in Western Australia also continued to operate at capacity, producing 47 million tonnes for the 2020 financial year.

In regards to the company’s copper and gold play, grassroots exploration on prospective tenements in Ecuador, alongside the Four Eagles joint venture project with Catalyst Metals in the Victorian goldfields, has continued to progress.

Hancock Prospecting increased its stake in Catalyst to more than 15 per cent following announcements of numerous successful drill holes.

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