Red Hill Minerals Reports $3.35M Royalty Revenue, Advances Multi-Project Exploration

Robust Royalty Income and Financial Position

Red Hill Minerals Limited (ASX: RHI) reported a solid $3.35 million in royalty revenue from its 0.75% FOB royalty over the Onslow Iron Project during the March 2025 quarter. This revenue stream reflects shipments of over 3.36 million dry metric tonnes of iron ore as the project ramps up towards its nameplate capacity of 35 million tonnes per annum, expected in the first quarter of FY26. The company ended the quarter with a strong cash balance of $66.1 million, underpinning its financial flexibility.

In a shareholder-friendly move, Red Hill announced a fully franked dividend of $0.03 per ordinary share, reinforcing confidence in its cash flow generation and ongoing royalty income. This dividend policy signals management’s commitment to returning value while continuing to invest in growth opportunities.

Strategic Expansion via Sandstone Gold Project Royalty

Further expanding its royalty portfolio, Red Hill executed a binding Heads of Agreement to acquire a 2% gross revenue royalty over the Sandstone Gold Project. This acquisition, announced late April, diversifies Red Hill’s exposure into gold, complementing its existing iron ore and base metals interests. The Sandstone royalty adds a new dimension to the company’s revenue streams and positions it to benefit from potential upside in the gold sector.

Exploration Momentum in West Pilbara and Curnamona JV

Exploration activities remain vigorous across Red Hill’s portfolio. In the West Pilbara Gold and Base Metals Project, the company completed ground electromagnetic (EM) surveys at key targets including Elwood and Kens Bore, following up on significant copper and zinc intersections. Preparations for reverse circulation (RC) drilling at Barkley, Elwood, and Jubilee South are underway, with drilling scheduled to commence in May. Notably, the Barkley Gold target continues to show promising grades, with recent drill results confirming mineralisation open along strike.

Meanwhile, the Curnamona Earn-In Joint Venture with Peel Mining Limited is progressing with comprehensive geophysical surveys, including a 1,875 line kilometre airborne mobile magnetotelluric (MMT) survey and gravity stations over regional targets at Broken Hill. The acquisition of tenement EL8778 expands Red Hill’s footprint in this highly prospective base metals region. Soil sampling results and ongoing geological interpretation are expected to refine drill targets later in the year.

Environmental and Heritage Approvals in Progress

Red Hill is actively managing environmental and heritage considerations across its projects. At the Pannawonica Iron Ore Project, environmental studies are being updated to meet regulatory requirements, with an external consultant engaged to complete necessary flora, fauna, and species reports. Similarly, at the Anabama Project within the Curnamona JV, heritage agreement negotiations and access reconnaissance continue, with planned induced polarisation (IP) surveys to further delineate copper-gold targets.

Outlook and Strategic Positioning

Red Hill Minerals is leveraging its royalty income to fund an aggressive exploration agenda across multiple commodities and jurisdictions. The ramp-up of the Onslow Iron Project royalty stream provides a stable financial base, while the Sandstone Gold royalty acquisition and ongoing exploration in West Pilbara and Curnamona offer significant growth potential. The company’s strong cash position and disciplined capital management bode well for sustaining exploration momentum and delivering shareholder returns.