Red Hill Minerals Hits $4.79m Royalty Revenue as Onslow Iron Shipments Surge
Red Hill Minerals reported robust royalty revenues and exploration progress in the June 2025 quarter, underpinned by strong iron ore shipments and strategic royalty acquisitions. The company’s solid cash position and advancing drill programs position it well for growth.
- Onslow Iron Project shipments near 35 Mtpa target with $4.79m royalty revenue
- Acquisition of royalties over Sandstone Gold and Thomson Gold-Copper projects
- Encouraging exploration results at Anabama copper-gold target and West Pilbara gold-base metals
- 4,000 metre diamond drilling planned at Broken Hill Project for September
- Strong cash balance of $64.5 million and fully franked dividend paid
Robust Royalty Income from Onslow Iron Project
Red Hill Minerals Limited (ASX – RHI) closed the June 2025 quarter with shipments from the Onslow Iron Project reaching the upper end of guidance. The project, operated by Mineral Resources Limited, achieved an annualised run-rate of 32.4 million tonnes per annum in June, with expectations to hit full nameplate capacity of 35 Mtpa in the first quarter of FY26. This strong operational performance translated into $4.79 million in royalty revenue for Red Hill, reflecting the value of its 0.75% FOB royalty over the project’s extensive iron ore resources.
Strategic Expansion of Royalty Portfolio
During the quarter, Red Hill expanded its royalty interests by acquiring a 2% Gross Revenue Royalty over Brightstar Resources’ Sandstone Gold Project in Western Australia and a 1.5% Net Smelter Royalty over the Thomson intrusion-related gold-copper project in New South Wales. The Sandstone royalty covers a substantial resource base of over one million ounces of gold, while the Thomson royalty provides exposure to a promising intrusion-related mineral system with recent drilling confirming significant gold mineralisation. These acquisitions diversify Red Hill’s revenue streams and position the company to benefit from potential future development and exploration success.
Exploration Momentum Across Multiple Projects
Exploration activities advanced notably in the quarter. At the Curnamona Earn-In Joint Venture, an Induced Polarization survey at the Anabama copper-gold target yielded encouraging results, prompting an extension of survey lines to better delineate chargeability anomalies. Preparations are underway for a 4,000 metre diamond drill program at the Broken Hill Project starting in September, targeting multiple base and precious metal mineralisation styles in a highly prospective region.
In the West Pilbara, Red Hill completed a 14-hole reverse circulation drill program and a two-hole diamond drill program across gold and base metal targets. Highlights included gold intercepts up to 8 metres at 2.4 grams per tonne at Barkley and zinc intercepts at S-Bend, reinforcing the potential for resource growth. The company also progressed heritage and environmental approvals in preparation for further exploration.
Financial Strength and Shareholder Returns
Red Hill’s financial position remains strong with a cash balance of $64.5 million at quarter end. The company maintained shareholder returns by paying a fully franked dividend of $0.03 per share during the period. Operating cash flows were positive, supported by royalty income and ongoing exploration investment. The company continues to manage its capital prudently while advancing its portfolio of projects.
Looking Ahead
With key drilling programs set to commence and exploration results pending, Red Hill Minerals is poised to unlock further value from its diverse asset base. The company’s strategy of combining royalty income with active exploration offers a balanced approach to growth in a competitive mining sector.
Bottom Line?
Red Hill’s blend of steady royalty income and active exploration sets the stage for potential growth, but upcoming drill results will be critical to watch.
Questions in the middle?
- How will assay results from the upcoming Broken Hill diamond drilling influence Red Hill’s exploration strategy?
- What impact could Legacy Minerals’ buyback rights on the Thomson royalty have on Red Hill’s future revenue?
- How might environmental approvals and infrastructure upgrades affect timelines for the Pannawonica Iron Ore Project?
