Red Hill Minerals Hits Full Capacity at Onslow Iron, Declares Dividend, Advances Exploration
Red Hill Minerals has achieved full production capacity at its Onslow Iron Project, generating $7 million in quarterly royalty revenue, while advancing multiple exploration fronts and declaring a fully franked dividend.
- Onslow Iron Project reaches 35 Mtpa capacity with $7 million royalty revenue
- Declared fully franked dividend of 6.5 cents per share
- 4,300m diamond drilling underway in Curnamona JV targeting base metals and copper-gold
- Received $320,000 NSW government grants for Broken Hill exploration
- Heritage surveys completed for West Pilbara gold and base metals drilling
Onslow Iron Project Delivers Strong Royalty Income
Red Hill Minerals Limited (ASX – RHI) has reported a robust quarter ending September 2025, highlighted by the Onslow Iron Project operating at its full nameplate capacity of 35 million tonnes per annum. The project, operated by Mineral Resources Limited, generated $7 million in royalty revenue for the quarter, aligning with expectations for a full-year royalty income of approximately $28.7 million. This milestone underscores the project's operational efficiency and Red Hill's steady income stream from its 0.75% FOB royalty.
Shareholders Rewarded with Dividend
Reflecting its strong financial position, Red Hill declared a fully franked dividend of 6.5 cents per share, paid in October 2025, distributing a total of $4.17 million to shareholders. The company closed the quarter with a healthy cash balance of $62.71 million, reinforcing its capacity to fund ongoing exploration and development activities without reliance on external financing.
Exploration Momentum in Curnamona Joint Venture
Exploration efforts accelerated in the Curnamona Joint Venture with Peel Mining Limited, where Red Hill is undertaking a 4,300-metre diamond drilling program targeting base metals and copper-gold mineralisation. Two holes totaling 1,603 metres were drilled at the Woolly target, revealing encouraging indicators of Broken Hill Type mineralisation. The program will continue through early December, testing multiple targets including K1, Dementus, and Immortan.
Complementing drilling, the company completed extensive geophysical surveys, including induced polarisation (IP) lines at the Anabama copper-gold target. These surveys extended the chargeability anomaly along the Anabama-Redan Shear Zone to over six kilometres, nearly tripling the known strike length and highlighting significant untested potential. A heritage survey with the Wilyakali Traditional Owners was also completed, paving the way for imminent drilling scheduled to commence in November.
Government Support and West Pilbara Progress
Red Hill secured $320,000 in exploration grants from the New South Wales Government to support diamond drilling and geophysical surveys at the Broken Hill Project, underscoring governmental confidence in the company's exploration strategy. Meanwhile, in the West Pilbara Gold and Base Metals Project, heritage surveys were completed across six target areas, facilitating future drilling. The company reviewed diamond drill core from the Barkley gold project, with assays expected next quarter, aiming to better understand mineralisation controls and fault systems.
Pannawonica Iron Ore Project Environmental Advances
Environmental studies for the Pannawonica Iron Ore Project progressed, with technical reports on terrestrial fauna, troglofauna, vegetation, and flora nearing completion. Access negotiations for haul road corridors advanced, securing all necessary third-party agreements. These steps are critical for advancing state environmental approvals and future project development.
Overall, Red Hill Minerals continues to balance steady royalty income with active exploration across multiple promising projects, maintaining a strong cash position and shareholder returns.
Bottom Line?
With full production capacity achieved and exploration programs ramping up, Red Hill Minerals is well positioned for growth, though upcoming assay results will be key to unlocking new value.
Questions in the middle?
- What will the assay results from the Woolly and other Curnamona drill targets reveal about mineralisation potential?
- How might ongoing exploration success impact Red Hill’s royalty income and project pipeline in the medium term?
- What are the timelines and potential hurdles for environmental approvals at the Pannawonica Iron Ore Project?
